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Pit bull trading strategy by brijon

  • #301
  • Nov 14, 2011 4:30am Nov 14, 2011 4:30am
See the attachment, and notice the huge drawdown in pips on the longs. They have been increasing all night.
Attached Image (click to enlarge)
Click to Enlarge Name: Brijon.jpg Size: 143 KB
  • #302
  • Nov 14, 2011 4:54am Nov 14, 2011 4:54am
Quoting brijon
swaped over after the video and finalys Started trading for our usa friends

finished of the day for $442.0 SALES 100 % HIT RATE AND DD 220


SO 2/1 TURN OVER RATE as i said one shouLD try To achieve stock to sales to sales

in camteck format
i tryed to upload to utube in camteck format so far its not uploaded damn but you guys have the screen snap shots




nice to see old friends on here

sorry no trading for me tommoro out all day having fun

i wasnt going to post the above video as it was a hotch pot of my methods...
Hello Brian,

I have tried your system with basic rules explained so far and had a 113$ profit with -60$ DD, so I assume I hit the 2:1 turn over rate as you said.

What I wonder is how you deal with the negative profit trades like the GBPUSD at the top on your screenshot. Do you close it after it reach to certain stoploss level or just let it alone?

Also can you elaborate a bit more on how you use the full lot size (1.0 lot) trades? I did not understand how using the positive swap rates on these currencies benefits your system.

Thank you.
  • #303
  • Nov 14, 2011 5:13am Nov 14, 2011 5:13am
Brian

Dryclean here Long time.....

At what point would you put on a hedge? For example how many pips to the bad -30 -40 -100. If there is a set point. I could use Steve's MPTM ea that would automatically hedge a pair with out me worrying about it.

Dreamliner We need to meet up someday I live here in Mayfield Hts OH about an hour from you, I believe
  • #304
  • Nov 14, 2011 5:14am Nov 14, 2011 5:14am
Starting a new demo account:

EUR: 1000
Lot sizes:
- Min: 0.01
- Max: 0.05

Sales so far: 160
Stock/DD : -72





Not trading at moment. watching P/L cycle.

Trend Biases: SHORT for sure

Have more sells in place than buys. 7 sells vs 5 buys.

But I believe trend will change soon. Some pairs are finding heavy support.

If Sells start moving up I'll try to put some buys in to rebalance basket.

As GBP/USD and EUR/USD have going down I also placed SHORTs in these 2 pairs.

Have fun

J
  • #305
  • Nov 14, 2011 5:36am Nov 14, 2011 5:36am
One word: ADDICTING!!
  • #306
  • Nov 14, 2011 5:39am Nov 14, 2011 5:39am
Quoting Dreamliner
My concern, again, is that I'm unable to close all trades currently as that would have me losing money, not printing money, and since we have no method of controlling the losing trades they could just continue to lose and increase the drawdown.
This method is either the best thing since sliced bread or the worst thing since atom bomb.
The way I try to deal with the DD is to only take profit when the DD is in my favor. When I take a profit and substitute the winning trade with a new one I write down my current equity value and I will take another profit on the nest winning trade only when I notice that DD decreased - the equity should increase. If I have a winning trade but the DD goes against me - so I am lower on equity despite some trades on the plus side, I don't cash in - as not to disrupt the hedge. I try to wait until DD goes the other way - above my defined equity waterline so to speak.
Whether it is a good idea - time will tell.
  • #307
  • Nov 14, 2011 6:35am Nov 14, 2011 6:35am
Dreamliner, would it make sense to buy both the biggest winner and the biggest loser? That might help to control the drawdown. Just an observation.

Quoting Dreamliner
See the attachment, and notice the huge drawdown in pips on the longs. They have been increasing all night.
  • #308
  • Nov 14, 2011 6:56am Nov 14, 2011 6:56am
Quoting Dreamliner
See the attachment, and notice the huge drawdown in pips on the longs. They have been increasing all night.

Dreamliner,

I had the same DD. If you noticed, the USD basket will control the DD. It will stay balanced.
Attached Image (click to enlarge)
Click to Enlarge Name: pit bull.gif Size: 45 KB
  • #309
  • Nov 14, 2011 7:15am Nov 14, 2011 7:15am
I'm looking for a plain, easy to use EA, that will allow me to input the pairs I want to open in a basket. Nothing fancy, just open the pairs I choose.

Suggestions?

Murph
  • #310
  • Nov 14, 2011 7:32am Nov 14, 2011 7:32am
If you can edit MT4. Here is a script file
Attached File(s)
File Type: mq4 Hedge 14_script.mq4   6 KB | 410 downloads
  • #311
  • Nov 14, 2011 7:57am Nov 14, 2011 7:57am
Quoting kook
Starting a new demo account:

EUR: 1000
Lot sizes:
- Min: 0.01
- Max: 0.05

Sales so far: 160
Stock/DD : -72

This is weird.

Just trading 0.01 and 0.05 lots (7 / 35 cents per pip) account grown was 21% by now. with -24 DD.

If I close everything now I would get my best day ever without pushing leverage. For me this is amazing.

So now i have to make a decision.
- Close everything and get 21% account growth.
- Stay praticing/playing PittBull bites.

Attached Image (click to enlarge)
Click to Enlarge Name: pitbull_0001.png Size: 52 KB


I'll choose the 2nd one. Market has been trending well so it has been more or less easy.
I'll rinse and repeat. Close the most profitable trades and enter new ones.
DD ill go up, but it the goal to get it down again and increasing equitity.

Thanks Brian

J.
  • #312
  • Nov 14, 2011 7:58am Nov 14, 2011 7:58am
Still trying to figure this all out.

I set the hedge up last night before bed to let it settle in. This am woke up to find the entire hedge at a net profit of 5%....currently 8% as I type without any interaction at all.

In instances such as this should we close all open orders and bank the 5-8%?

Or is this the ideal time to begin putting in our larger orders i.e. swapping .1's for .4's?

Is there a best/worst time to begin interacting with the hedge for example only if the hedge is showing a net profit?

I'm def over leveraged for this exercise but it is demo but I'm trying to figure out how fast this thing can go against you and what to do if it does.

Thanks to Brijon and the others for all of their help.

Edit to add : I am located in the US so I can't directly hedge currencies, is this method doable for those of us in the states?
  • #313
  • Nov 14, 2011 8:03am Nov 14, 2011 8:03am
Quoting daft
Still trying to figure this all out.

I set the hedge up last night before bed to let it settle in. This am woke up to find the entire hedge at a net profit of 5%....currently 8% as I type without any interaction at all.

In instances such as this should we close all open orders and bank the 5-8%?

Or is this the ideal time to begin putting in our larger orders i.e. swapping .1's for .4's?

Is there a best/worst time to begin interacting with the hedge for example only if the hedge is showing a net profit?

I'm def over leveraged for this...
I am not sure what the correct answer is to this but for what it is worth I would take the profit and start a new hedge
  • #314
  • Nov 14, 2011 8:08am Nov 14, 2011 8:08am
I started a demo this morning. I have been trading 0.01 lots on the main hedge and taking my "extra trades" at 0.04 lots.

I can't trade full time due to my other work commitments but my account looks like this so far.

Opening balance £2000
Currect balance £2067.14

Equity £2024.17

Drawdown is £42.97

I started out with lots that are a little small for the account size and althougth drawdown is not anywhere near 10% i am going to stop and see if the drawdown natuarlly comes down.

Regards
  • #315
  • Edited 8:39am Nov 14, 2011 8:21am | Edited 8:39am
I understand most of this, but what I don't get is why everyone is calling the 10 pairs a hedge. When you work it out and eliminate the offsetting currencies, the net "hedge" is selling 5 units of USD vs JPY and buying one unit of EUR vs GPY. It's not at all neutral, so it's not a hedge, and a portion of your profits and losses are coming from this unbalanced hedge, which is mostly short the USDJPY.

Can anybody find fault in my concern ?

(Edit: Note, the 10 pairs can still work as an indicator, even though it's not a hedge, as it's essentially just showing you what pairs are strong at any point in time. However, I'm just trying to point out that your hedge is essentiall short USDJPY all the time, with a little influence from EURGBP, and this will effect your profits)
  • #316
  • Nov 14, 2011 8:29am Nov 14, 2011 8:29am
Quoting daft
Still trying to figure this all out.

I set the hedge up last night before bed to let it settle in. This am woke up to find the entire hedge at a net profit of 5%....currently 8% as I type without any interaction at all.

In instances such as this should we close all open orders and bank the 5-8%?

Or is this the ideal time to begin putting in our larger orders i.e. swapping .1's for .4's?

Is there a best/worst time to begin interacting with the hedge for example only if the hedge is showing a net profit?

I'm def over leveraged for...
Woke up to +250 pips myself, daft, altho letting it do its thing for 8 hours while one sleeps is not exactly part of the program. Closed everything, waited about half an hour and opened a new basket a couple minutes ago. Round 2 is underway. I fully expect to see that 250 disappear and then some.lol

I did add one extra trade last night (or was it two?), totally discretionary, that ended up going in my favor, which padded the profits a bit, so it wasn't exactly by the book--except there is no book--wtf are we doing here??? I confess that I have no idea.
  • #317
  • Nov 14, 2011 8:30am Nov 14, 2011 8:30am
Quoting trader416
I understand most of this, but what I don't get is why everyone is calling the 10 pairs a hedge. When you work it out and eliminate the offsetting currencies, the net "hedge" is selling 5 units of USD vs JPY and buying one unit of EUR vs GPY. It's not at all neutral, so it's not a hedge, and a portion of your profits and losses are coming from this unbalanced hedge, which is mostly short the USDJPY.

Can anybody find fault in my concern ?
I am new to this sort of trading but my guess is that it would not work properly if it were a 100% hedge as there needs to be some movement to allow the initial trades to move the open basket of trades into a profit position.

As daft mentioned his initial basket of trades went into 8% profit and so he could take that profit off the table and restart.

Maybe a better term would be the initial basket of trades rather than a hedge?

I am probably totally wrong but thats my understanding so far.
  • #318
  • Nov 14, 2011 8:34am Nov 14, 2011 8:34am
Quoting Dreamliner
See the attachment, and notice the huge drawdown in pips on the longs. They have been increasing all night.
I had the same situation last night, you just missed the reversal when you went to sleep. once it hit, i was adding new orders and closing old ones like crazy. profit shot way over DD and I closed it all out. I did, however, keep all my lots the same value at .15 it kept dd lower and i didn't have to constantly worry about increasing the value of one hedge over another, just replacing them.
  • #319
  • Nov 14, 2011 8:36am Nov 14, 2011 8:36am
...more questions


My bottom 5 are all in profit nicely. Once I take profit on the bottom slot (the initial probe) and replace it with the larger trade obviously that bottom slot is replaced with the next most profitable pair of the "hedge" or "basket". Do I then immediately repeat that process for the current pair in the bottom slot? Or wait until the entire hedge is in profit again....or until that larger order just placed is back in the bottom slot?

I guess this is where controlling DD comes into play bc if you kept that up for all pairs in profit you could go into major DD.
  • #320
  • Nov 14, 2011 8:46am Nov 14, 2011 8:46am
Quoting indy360
I am new to this sort of trading but my guess is that it would not work properly if it were a 100% hedge as there needs to be some movement to allow the initial trades to move the open basket of trades into a profit position.

As daft mentioned his initial basket of trades went into 8% profit and so he could take that profit off the table and restart.

Maybe a better term would be the initial basket of trades rather than a hedge?

I am probably totally wrong but thats my understanding so far.
Indy - theretically, if it was a perfect hedge, the total profit of the hedge would always be zero, but there are inefficiencies in the market that will have a hedge bouncing back and forth on either side of zero. And yes, this system would still work if it was a perfect hedge, because some pairs will always be profitable while others are in losses, so you would always have pairs shuffling around and falling to the bottom of the list when they are the most profitable pair.

With respect to your comment about taking profits off the table and restarting, I don't think you understand the system (or perhaps you just didn't say that right), because you don't restart the hedge. The hedge is always kept on, whether you're in profit or not - it's just the larger positions (ie. the ".04" position) that are closed out at profit.
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