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Pit bull trading strategy by brijon

  • #321
  • Nov 14, 2011 10:52am Nov 14, 2011 10:52am
Quoting trader416
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.

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...
Thanks for your clarification.

I understand what you are saying, but lets say for example you decide that your drawdown is too high and so you stop adding trades, when you come back to your computer and if the open hedge is in profit you could in theory close it, take the profit and then restart it. I dont see anything wrong in doing that, after all profit is profit however we achieve it. You would not close the hedge unless the "basket" is in profit, if the drawdown has come down to a level that is accatpable, but not showing an overall profit, then you start adding trades as usual - printing money.
  • #322
  • Nov 14, 2011 11:02am Nov 14, 2011 11:02am
Nothing wrong with closing down " rinse and repeat"

To quote brian, no right or wrong way to trade, whatever you feel confident with,

M.
  • #323
  • Nov 14, 2011 11:18am Nov 14, 2011 11:18am
Sure, whatever works. I guess what I'm saying is - don't go into this with blinders on. The hedge itself puts you short USDJPY, and with the exception of the one EURGBP pair, essentially any trade you make puts you either short the USD or long the JPY. Therefore, I suggest you keep an eye on the USDJPY chart, and if it rises significantly, that's when the whole system will likely go into drawdown. And if USDJPY rises and never comes back down, you might never get out of your drawdown.

Because of this emphasis on USD and JPY pairs, the success of the trades really relies on the USDJPY pair continuing to fall in the future.
  • #324
  • Nov 14, 2011 11:20am Nov 14, 2011 11:20am
Quoting trader416
Sure, whatever works. I guess what I'm saying is - don't go into this with blinders on. The hedge itself puts you short USDJPY, and with the exception of the one EURGBP pair, essentially any trade you make puts you either short the USD or long the JPY. Therefore, I suggest you keep an eye on the USDJPY chart, and if it rises significantly, that's when the whole system will likely go into drawdown. And if USDJPY rises and never comes back down, you might never get out of your drawdown.
Good point, thanks for explaining
  • #325
  • Nov 14, 2011 11:27am Nov 14, 2011 11:27am
Quoting trader416
Sure, whatever works. I guess what I'm saying is - don't go into this with blinders on. The hedge itself puts you short USDJPY, and with the exception of the one EURGBP pair, essentially any trade you make puts you either short the USD or long the JPY. Therefore, I suggest you keep an eye on the USDJPY chart, and if it rises significantly, that's when the whole system will likely go into drawdown. And if USDJPY rises and never comes back down, you might never get out of your drawdown.

Because of this emphasis on USD and JPY pairs, the success...
Fair point. Is there another more evenly distributed basket that you would suggest? Thx.
  • #326
  • Nov 14, 2011 11:36am Nov 14, 2011 11:36am
I completely agree with you, itīs not a hedge.
Maybe only a direcional indicator, but just it.
The basket show who is strong and who is weak. The net result of the basket can go anywhere, and without stop strategy it cam be dangerous.

Suba

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 ?

(Edit: Note, the 10 pairs can still work as an indicator, even though it's not a hedge, as it's essentially...
  • #327
  • Nov 14, 2011 11:49am Nov 14, 2011 11:49am
It is an indicator to show volutility to help us trade manually.

Brian makes that clear.

The bonus is the ability of the "basket" to remain or return back to certain parameters if left alone.

M.
  • #328
  • Nov 14, 2011 11:57am Nov 14, 2011 11:57am
I think this depends a lot on when we cut our profits short and how long we allow the losers to run.

For instance, right now I have the following stats:

Sales: $16.35
Drawdown: $18.34

Quoting mrpip05
Dreamliner,

I had the same DD. If you noticed, the USD basket will control the DD. It will stay balanced.
  • #329
  • Edited 12:35pm Nov 14, 2011 11:59am | Edited 12:35pm
Quoting daft
Fair point. Is there another more evenly distributed basket that you would suggest? Thx.
Here's a few basket examples that are nuetral. I hope they're right - I just made them up. It all depends on what pairs you get from your broker, and if you have any preferences (for example, I shy away from EURGBP because that pair gives me more losses, in other trading methods, than any other pair). Also, you can flip them, if you prefer (ie. Sell all the "Buys" and Buy all the "Sells", so long as you completely flip them all:

4 Pair:
Buy: GBPCHF, EURJPY
Sell: EURCHF, GBPJPY

7 Pairs:
Buy: GBPUSD, EURGBP, AUDJPY
Sell: CADJPY, AUDUSD, EURUSD, USDCAD

8 Pairs:
Buy: GBPUSD, AUDJPY, EURJPY
Sell: CADJPY, AUDUSD, EURUSD, GBPJPY, USDCAD

11 Pairs:
Buy: GBPUSD, EURGBP, GBPCHF, AUDJPY, EURJPY
Sell: CADJPY, AUDUSD, EURUSD, EURCHF, GBPJPY, USDCAD

14 Pairs:
Buy: GBPUSD, EURGBP, GBPCHF, AUDJPY, EURJPY, NZDJPY
Sell: USDJPY, CADJPY, AUDUSD, EURUSD, EURCHF, GBPJPY, USDCAD, NZDUSD
  • #330
  • Nov 14, 2011 12:00pm Nov 14, 2011 12:00pm
Agreed! I'm coming to understand, by watching my drawdown increase by cutting profits short and letting losers run, that this should not be traded according to the first post (my PDF).

I will be happy to change that statement if my very large (over 700 pips) of drawdown somehow begins to go away. As it is right now, drawdown is simply increasing and increasing.

Quoting Suba
I completely agree with you, itīs not a hedge.
Maybe only a direcional indicator, but just it.
The basket show who is strong and who is weak. The net result of the basket can go anywhere, and without stop strategy it cam be dangerous.

Suba
  • #331
  • Nov 14, 2011 12:10pm Nov 14, 2011 12:10pm
Is there anyone familiar with this method willing to do a quick skype? Just have a few questions I'd like to iron out. Shoot me a PM if you have the time, thanks in advance.
  • #332
  • Nov 14, 2011 12:26pm Nov 14, 2011 12:26pm
Dreamliner. Early days yet.Maybe best to avoid wild horses like the gbp/jpy.
I had a good day trading a basket of eu/usd , gbp/usd , aud/usd , nzd/jpy ,eu/jpy ,nzd/usd , usd/jpy , aud/jpy.
Closed all positions with a profit for the day. Will open new basket tomorrow before Europe opens.
This trading is not one system fits all , to each individual and his character best to trade within his comfort zone.
  • #333
  • Nov 14, 2011 1:14pm Nov 14, 2011 1:14pm
not rocket science

long 1 eurgbp,

short 5 usdjpy

that's it.

this sys is 1000s miles from being mature.


Quoting Dreamliner
Agreed! I'm coming to understand, by watching my drawdown increase by cutting profits short and letting losers run, that this should not be traded according to the first post (my PDF).

I will be happy to change that statement if my very large (over 700 pips) of drawdown somehow begins to go away. As it is right now, drawdown is simply increasing and increasing.
  • #334
  • Nov 14, 2011 1:24pm Nov 14, 2011 1:24pm
Quoting moodybot
Nothing wrong with closing down " rinse and repeat"

To quote brian, no right or wrong way to trade, whatever you feel confident with,

M.
M,

I think a potential problem with this philosophy i.e. "no right or wrong way to trade", is that it may be very difficult to get a touchstone from which newbies can work. If there is no right or wrong way, how can we establish any reference points?

To gain confidence newbies must have some kind of touchstone, if the parameters of the system are constantly changing then that will undermine such efforts. For example a poster has just announced that their basket does not include the wild child GBPJPY, so a fundamental difference surfaces.

I personally think we need stablity of system first and foremost - a right way if you like, and later perhaps people can begin to explore variations ... afterall this is Pit Bull For Dummies ...

Anyway, just my two cents

Regards,
  • #335
  • Nov 14, 2011 1:28pm Nov 14, 2011 1:28pm
I am in a similar position right now Dreamliner.

Sales $5.34
DD: $6.28

I'll be working on figuring out how long to let the winners go tonight. My first thought was I'm not letting the initial winner go far enough before taking profit. But after watching Brijons videos again, I see his pip count per winner is not all that high. So it may be a case of increasing the lot sizes faster while the winners are winning while the losing positions that are in DD are still on their original smaller lot size.


Quoting Dreamliner
I think this depends a lot on when we cut our profits short and how long we allow the losers to run.

For instance, right now I have the following stats:

Sales: $16.35
Drawdown: $18.34
  • #336
  • Nov 14, 2011 1:42pm Nov 14, 2011 1:42pm
Quoting 4Xfactor
M,

I think a potential problem with this philosophy i.e. "no right or wrong way to trade", is that it may be very difficult to get a touchstone from which newbies can work. If there is no right or wrong way, how can we establish any reference points?

To gain confidence newbies must have some kind of touchstone, if the parameters of the system are constantly changing then that will undermine such efforts. For example a poster has just announced that their basket does not include the wild child GBPJPY, so a fundamental difference surfaces.

I...

Im not convinced that this method is for newbies, however we all have to start somewhere.

The phrase " no right way or wrong way to trade" reflects brians philosophy that most systems or indicators will work if the dd is controlled, we all have different trading times, work and family commitments so what will work for one person trading at london open maybe different for someone else trading the asian due to the somewhat reduced volutility, which is what this system is based upon.

If a newly applied basket moves into profit are you going to ignore the chance of making an easy profit or wait for a slot to ripen because thats what the method suggests.

The key to the method has been explained, up to the individual to trade it in his/her comfort zone.

My 2 pence worth

M.
  • #337
  • Nov 14, 2011 1:49pm Nov 14, 2011 1:49pm
As you can see the method you use to print money it does not mater

emas rsi multi indicaters or mac

or PIT BULL TRADERS

IF you cant control drawdown in the end you will loose your money

over time



PIT BULL TRADER just teaches you the lesson fast

any one can print money its easier using bigger lots because say smaller lots sizes (eg macro baby accounts ) your cost of sales in proportion are higher) meaning for every sale you have to make more profit )

eg 1 full lot 1 pip is 10 profit cost is 5 dollars in 5 out

.01 you need 10x to cover cost

so one needs to think a lot more on small accounts profit is an alusion

REALY ONE LEARNS USING PIT BULL TRADER PRINTING MONEY

that he has to learn dd control not making sales this is 95 % why you win
or why you loose in the long term in FOREX TRADING

some traders will win lots of money some will loose the traders that cant learn dd control no mater what system or indicater will loose trading the forex over time chasing there own tail

PIT BULL TRADER PRINT MONEY will prove that 100% hit rate is easy to do

trading any system or indicaters if you are a good trader printing money is easy to do just that

PIT BULL TRADER IS EASY TRADING FAST ACTION

so for the trader that suddenly thinks wf im doing here

if he cant learn dd control on the forex wf is he doing trading the forex

this is the sad fact 95% of traders loose money trading the forex

95% of traders are chasing the magic system the magic thread on the forex factory

the simple truth is any good system any thread on the forex factory

on the forex factory one can make 100% hit rate

the simple truth is found here

its not

PIT BULL TRADER

BURIED IN HERE IF YOU HAVE USED PIT BULL TRADER IN DEMO

IS THE SIMPLE TRUTH

SOME TIMES SIMPLE THINGS ARE THE HARDEST TO SEE

if you cant manage your account manage drawdown here OR LEARN
DD CONTROL OR BE PREPARED

I WOULD ASK SERIOSLY WF AM I DOING TRADING THE FOREX OR BEING ON THE FOREX FACTORY ON ANY THREAD

SORRY BEING ABSLOTELY BRUTAL but these are brutaly hard times for lots of traders if you are a serious trader that wants to make money from trading in my opinion 95% of yourtime needs to be spent on DRAWDOWN CONTROL AND ACCOUNT MANAGE MENT NOT PRINTING MONEY TRADING THE FOREX

so every good thread on the forex factory can teach you to trade a thousand different ways if one is and haves good technical skills he can print money and have great hit rates

but if you dont learn dd control and a good account management system
then you should ask your self wf am i doing trading the FOREX

THAT IS MY OPINION

only you can answer that question

i may be wrong

God bless from Brian
  • #338
  • Nov 14, 2011 1:56pm Nov 14, 2011 1:56pm
Quoting TheDirtySerb
I am in a similar position right now Dreamliner.

Sales $5.34
DD: $6.28

I'll be working on figuring out how long to let the winners go tonight. My first thought was I'm not letting the initial winner go far enough before taking profit. But after watching Brijons videos again, I see his pip count per winner is not all that high. So it may be a case of increasing the lot sizes faster while the winners are winning while the losing positions that are in DD are still on their original smaller lot size.
I've done it 2 times now. seems like profit always drags way behind dd until you get alot of volitility and surges back and forth. the first time i increased lot sizes as directed but ended up chasing hedges so to speak. second time i left all my lots at the same level and just closed profits as soon as they came in, around 3 - 10 pips. i think the secret is to take profit as fast as you can. when we hold onto normal trades for a long time to maximize our profit, the pairs actually rise and fall dozens of times. so a normal trade that we get maybe 50 pips for, has actually cycled through a couple hundred pips up and down. so i think that's the trick, sucking up every bit of profit on all the little peaks until a major reversal and then doing it again the other direction.
  • #339
  • Nov 14, 2011 2:09pm Nov 14, 2011 2:09pm
Well said, Brijon.

so exactly how to control the DD? this is the KEY of pit bull.

can u show an example? or which video (you uploaded quite a few) talks about this topic?

many thanks.

Quoting brijon
but if you dont learn dd control and a good account management system
then you should ask your self wf am i doing trading the FOREX

THAT IS MY OPINION

only you can answer that question

i may be wrong

God bless from Brian
  • #340
  • Nov 14, 2011 3:09pm Nov 14, 2011 3:09pm
Quoting moodybot
Im not convinced that this method is for newbies, however we all have to start somewhere.

The phrase " no right way or wrong way to trade" reflects brians philosophy that most systems or indicators will work if the dd is controlled, we all have different trading times, work and family commitments so what will work for one person trading at london open maybe different for someone else trading the asian due to the somewhat reduced volutility, which is what this system is based upon.

If a newly applied basket moves into profit are you going...
M,

Let me clarify something here, I would not consider Dreamliner a 'newbie', neither myself or a few others in these parts. Dummies maybe, but only because there is a gap in the understanding of what is going on ... and since Dreamliner has recently tried to bridge that gap there has been an increase in the flow of information with respect to this system/method.

Dreamliner has tried for over a year now, at least a year maybe more, to try and get some comprehensive, coherent and systematic framework in place with respective to Brijon's offerings.

So trying to build a foundation on shifting sands may not be the best idea, that is all I suggest.

Regards,
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