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Pit bull trading strategy by brijon

  • #421
  • Edited 12:16pm Nov 15, 2011 11:48am | Edited 12:16pm
I notice from your screenshot that you have a heavy bias to the "buy" side. How do you navigate with the Pit Bull "indicator" to confirm that you are on the correct side of the bias?

Hi Jon,
From what I understand of tecnical analysis, let's take the Euro for example... Until it breaks below 1.1639, we are still considered in an up trend even tho we are in a range, still counts as an uptrend. Add to this the fact of the interest rates for carry trades...Euro 1.25% vs. USD at .25%; so the longer term traders/investors should still want to hold and be long these pairs. This goes esp true for the AUD & NZD as they have the top interest rates of the majors. After having said that, one can funnel down and look on the day (intraday) charts and make shorter-term trades regarding breaches of Active Highs and Active Lows. I did not do this; just started out as was shown. I am demo trading the account, too. Also, today I think is triple interest day so I'm looking for these pairs to rebound a bit. If you need further clarification, I'm happy to post a few charts.

I was slow getting out of the gate realizing USD pairs were falling and did not close them and put on counter trades. Since I'm testing this strategy I wanted to see how it plays out according to longer term chart/trading. So, I guess we'll see if longer term trend prevails. In the future, I will pay more attention from the start.

Also, IF I COULD, I would have put on counter-trades until they came back to levels I got in...i.e., Short the Dollar pairs and make back most of it, but as you know, hedging is prohibited in the US. Even if I could put those counter-trades on, FIFO would have stopped me from closing the winning counter trades before I took the loss on my first trades that were Long. I'm thinking to do this successfully and put all odds in my favor, of having a sub account / 2nd account, where I can place intra-day hedges, in the event I enter right when the short-term bias changes (as happened recently).

Thanks for the nod to my spectacular-ness! lol
  • #422
  • Nov 15, 2011 11:57am Nov 15, 2011 11:57am
Quoting attila
I've been playing with this method a little, and I want to throw something out there.

When things go as planned, it's all good. Take the bottom trade out, place a bigger one and then watch the money rolling in. The nice part is the smaller "hedge" trade pays for the spread of the bigger one. OK, so it's all good. Ah, I almost forgot. I think the way to go is to only have ONE bigger trade at a time. I could be wrong, somebody correct me.... The reason for that is because of the downside of that trade going into a draw down right away. We don't...
All great questions...some of the same I am wrestling with(mangaging drawdown) the best way, the right way, etc. This is the difference between getting drawn down and a margin call or managing your stock and sales) I don't think there is only one right way...but demoing and finding the way that works best for your trading times and risk appetite will be the one incorporated into your plan. I don't think it will be the same for everyone. If you are closing losers you are not printing money. But at the end of the day the 64 dollar question(which Brijon has addressed many times) is left to the individual to answer.
  • #423
  • Nov 15, 2011 12:03pm Nov 15, 2011 12:03pm
Quoting WaveTrend
All great questions...some of the same I am wrestling with(mangaging drawdown) the best way, the right way, etc. This is the difference between getting drawn down and a margin call or managing your stock and sales) I don't think there is only one right way...but demoing and finding the way that works best for your trading times and risk appetite will be the one incorporated into your plan. I don't think it will be the same for everyone. If you are closing losers you are not printing money. But at the end of the day the 64 dollar question(which Brijon...
Indeed. I like it safe, small but steady because you can always compound consistency.
  • #424
  • Nov 15, 2011 12:06pm Nov 15, 2011 12:06pm
I need to figure this out on my own before I can comment on what others are thinking or changes they want to make. I think we need to trade it the way Brijon has presented it for some time instead of trying to modify it because the DD seems scary. The market as a whole right now is scary and the sudden moves will result in big DD, its inevitable. I want to remind those that want to put their own spin on things right away that the market actually ranges for something like 70% of the time. Dont believe me? Look at a monthly chart of the eur/usd. Roughly $1.18 to $1.50 over the last 3+ years right? So the DD would be painful, but think of how much money could have been printed on the other pairs while eu was in DD. So I guess what I want to say is lets trade the method Brijon presented for a while before tweaking it every which way. Now the two day running total.

Sales $9.17
DD: $9.94

I'm giving this a full week before even thinking about making any changes. At worst, I'll close out everything in DD and be at or near break even. Then either modify it, or move on. Best of luck to all.
  • #425
  • Nov 15, 2011 12:06pm Nov 15, 2011 12:06pm
Ann isn't this entire system built around price action? Negating the need for the most part of chart study? You could find yourself with major conflicts of bias btw charts and what the "indicator" is showing and might get into trouble.

Also I'm not sure who your broker is but a few such as oanda I believe have a way around FIFO, you just enter orders of different size ie .15 and .14 of the same pair dont have to be pulled in order.
  • #426
  • Nov 15, 2011 12:20pm Nov 15, 2011 12:20pm
Quoting altoronto
Cool. Dryclean, as far as I remembered on one of the Brijon's old thread you posted EA which will open 6 pairs buy/sell and basically it's doing same thing. Only needs to change to open 0.4 lot size after initial 0.1, am I right?


Correct
  • #427
  • Nov 15, 2011 12:22pm Nov 15, 2011 12:22pm
Quoting daft
Ann isn't this entire system built around price action? Negating the need for the most part of chart study? You could find yourself with major conflicts of bias btw charts and what the "indicator" is showing and might get into trouble.

Also I'm not sure who your broker is but a few such as oanda I believe have a way around FIFO, you just enter orders of different size ie .15 and .14 of the same pair dont have to be pulled in order.
Interesting, Daft about Oanda. I'm with Alpari currently and as far as I know, no such thing exists. They always make me close the first trade I put on (at a loss) before closing the 2nd which might be at a profit. And, yes, you're right this should have been about price action (no charts), but since I wanted to follow the strategy exactly, I kind of held on to them. Then when I saw that retracements might be done, I added. I modified my above post saying I was slow out of the gate in realizing USD pairs were dropping but at the same time I wanted to follow the directions to the T.
  • #428
  • Nov 15, 2011 12:24pm Nov 15, 2011 12:24pm
Quoting attila
I've been playing with this method a little, and I
Edit: Just thinking. If we have to close the trade at a loss would it make sense to also close some trades that are in profit to soften the blow, and the re-open them to maintain the "hedge"?

Sort of what I have been trying. I might have some trades at the top that I opened that went south for lets say -10 and I have a few open at the bottom for lets say +7 and +6 I will close the -10 and the +7 +6 and net +3 . I got rid of the -10 buy sacrificing the +7 +6 but it is all good equity is +3 DD is smaller. But yea only open 1 2 maybe 3 of the .04 lots other wise things become a mess
  • #429
  • Nov 15, 2011 12:27pm Nov 15, 2011 12:27pm
Quoting dryclean
Sort of what I have been trying. I might have some trades at the top that I opened that went south for lets say -10 and I have a few open at the bottom for lets say +7 and +6 I will close the -10 and the +7 +6 and net +3 . I got rid of the -10 buy sacrificing the +7 +6 but it is all good equity is +3 DD is smaller. But yea only open 1 2 maybe 3 of the .04 lots other wise things become a mess
Right... The downside I see is that now the "hedges" are further apart, but as the pairs don't move with the same momentum, it might be acceptable. I'm testing....
  • #430
  • Nov 15, 2011 12:31pm Nov 15, 2011 12:31pm
Quoting daft
Ann isn't this entire system built around price action? Negating the need for the most part of chart study? You could find yourself with major conflicts of bias btw charts and what the "indicator" is showing and might get into trouble.

Also I'm not sure who your broker is but a few such as oanda I believe have a way around FIFO, you just enter orders of different size ie .15 and .14 of the same pair dont have to be pulled in order.
Also, I've been a chart trader for quite some time and old habits die hard. I'm sure it just takes some getting used to looking exclusively at the indicator to make trades. Definitely need to be quick/reactionary. Working on that...
  • #431
  • Nov 15, 2011 12:41pm Nov 15, 2011 12:41pm
I finally closed 2 G/J trades--my first losses (they were counter trades--buys) of $48. Now, wouldn't you figure, G/J is going up. Reason for taking loss/closing: G/J was languishing and I didn't think the interest rate differential between the GBP (.50) and JPY (.10) was enough to make traders want the triple interest, so I closed it.

Anyway, my DD has reduced significantly from $239 to $125 and still reducing...

Here is chart...
Attached Image (click to enlarge)
Click to Enlarge Name: dd $130.gif Size: 85 KB
  • #432
  • Nov 15, 2011 12:44pm Nov 15, 2011 12:44pm
one needs actualy to get into the water to learn to swim you cant learn to swin by reading a book or watching a video

i see the brave ones have got in and started to swim ,

we use different strokes or styles to get to the other size of a swimming pool dont we

some go faster have a better style and get there first but these are the heroes the ones that actualy just jumped in and actualy started to swim AND REACHED THE OTHER SIZE

WE WILL NEVER BE ABLE TO HELP THE ONES WHO NEVER JUMP IN BUT PADLE IN THE SHALLOWS ASKING FOR MORE INFORMATION

then say its impossible if you go over your depth

the coach is wrong

dont listen come back and paddle with me hes crazy an ideot theres sharks in the water


REMINDS ME OF THE FOREX FACTORY SOMETIMES

now the PIT BULL TRADER IS A STAND ALONE TRADING PLATFORM

That doesnt neesd charts or other aids once you gain confidence
you dont need to cling to your floaty but nothings wrong with that in my eyes you are heroes

charts and indicaters are great but first i would like to improve your stroke
and gain some speed and learn the full potential of the PIT BULL TRADER

Now you can make and identify the trading range of each currency in your pit bull trader

THE SQUARE OF THE PIT BULLS TRADING RANGE

ect ect i would like the blue ribon medal holders move on to uderstanding fully

the PIT BULL TRADER

we all know indicaters ect theres litteraly thousands of indicaters you can study

NoN realy print money

but can give a gold ribbon holder an extra bonus an edge if he realy understands
price now and the trading range and the trend

using the PIT BALL TRADER

PRICE IS THE IN THE BOTTOM 3 SLOTS

its easty to create the trend range of price using the 100 square principle

eg the top ofthe loss COLLUM

if you put on an order using the same currency eg top is -$125 of audusd example only a sell

then if you place an order the order sell

goes to the bottom or close doesnt it the range keeps changing according to price now SO DOES THE SLOT POSITION

its an idea for you to play with a learning tool your only limited by your imagination for the blue ribon holders

see these real heros have the esential ingredient of all succesful people

they are not limited by there imaginataion

when you imagine you can

you can

imagine you are a hero you become a hero

we are what we think

when we act as a loser we are

we are what we act only the physical limitation can hinder us

but with physical limitations

one man with no arms no legs stands on a stage table without legs or arms and smiles and talks how great life is
we can do the impossible

an inspiration real life a hero of mine

every time i think i cant tears fill my eyes

and I think YES I CAN

hes not limited by his imagination not limited he jumps in the water
and swims

GOD BLESS HIM from Brian AND OUR BLUE RIBBON HEROES



loss profit loss efectively you have set the range of the currency
and its slotposition on the pit bull trader its only limited by your imaginaton
  • #433
  • Nov 15, 2011 3:02pm Nov 15, 2011 3:02pm
Quoting Ann
I am up $245 (banked) using the smallest of lots (.01, .04 maybe an .05 and I've not taken one loss). Now, $245 doesn't sound like much, but keep in mind I can't use same currency pair hedging and am stymied by FIFO rules (I am US-based), but that is 3.5% in 2 days!!! I have left this running (non stop) and with DD my initial account equity is still preserved (not touched!). Brijon's right, one needs to practice. I believe the concept is SOUND. I started out a little upside down not realizing there was a major retracement on the USD...
Interesting. All you orders are "BUY", there is no BUY & SELL basket order.
Trading is SIMPLE not EASY.
  • #434
  • Nov 15, 2011 3:06pm Nov 15, 2011 3:06pm
Quoting brijon
lets slow down
.....

but the trick is changing the bias to the present trend

so there is skill order on trend bias re changing fast reconising visuaL the start of new trend on PIT BALL TRADER USING AS A LONE TRADING PLATFORM

ALSO AS I RELY ON UNCONCIOUS TRADING NO THOUGHT TRADING
I CAN SEE THE PATERN OF TREND CHANGE ON THE TRADER AND AJUST MY ORDER BEFORE THE TREND CHANGE

THIS IS EXPERIENCE.....

GOD BLESS FROM BRIAN

Firstly, many thanks Brian for all your efforts on FF and for presenting this method. With the help of very useful contribution by DL, and insights from Tarini65, Dk21 and others, this system is now pretty clear.

The key is definitely managing drawdown.

In post # 137 p10 you refer to trend bias and recognizing start of a new trend.

Could you please explain a bit more about how you recognize the start of a new trend?
How do you see "Pattern of a trend change"?

Is is about looking for slowing momentum and things like price stalling?

Thanks,
EP
  • #435
  • Nov 15, 2011 3:27pm Nov 15, 2011 3:27pm
Quoting garfield75
Interesting. All you orders are "BUY", there is no BUY & SELL basket order.
I bought some Yen pairs in the interim to bring in some quick profits while I wait for my DD on my USD longs to reduce. If you notice, those Yen buys were all showing Positves--they were on the bottom part of the indicator, so I chose to bank some quick profits to offset some of the DD.
  • #436
  • Nov 15, 2011 3:33pm Nov 15, 2011 3:33pm
Quoting dryclean
Correct
Hi Dryclean

Could you please give the name of that EA so I can search for it, I have searched through the treads and your attachements but had no luck.

thanks in advance
AJ
  • #437
  • Nov 15, 2011 3:37pm Nov 15, 2011 3:37pm
i cant swim for you



PIT BULL TRADER SHOWS YOU CLEARLY THE TREND FROM CENTRE LINE SELLS AND BUYS BELOW THE CENTER LINE

what THAT SHOWS CLEAR if the SELLS MAJORITY ITS A SHORT MARKET ---EQUAL SIDEWAY MARKET or LONGs

now its only looking at the numbers
but its the trend now based on price so if the trend is sell short how many total sells to buys equal bias neutral

if market is sell you may need eg more sells on than buys eg if you use 10 hedge could be balance sells 10sells to 5 buys

then you are in short bias which will help bring down drawdown as the trend strength becomes stronger or vise versa

relative srength now the currenys is seen clearly between position on usdjpy to jpys and usd on the PIT BULL TRADER

ON ONLY HAS TO LOOK

clear eyes simple things are some times the hardest things to see

its all basic trading not hard to do

on the

PIT BULL TRADER THE PATTERN OF THE TREND CHANGE IS WATCHING THE CURRENCY MOVEMENT OF THE SLOT MOVEMENTS

ONE NEEDS CLEAR EYES AND WATCH


GOD BLESS BRIAN














Quoting EaglePip
Firstly, many thanks Brian for all your efforts on FF and for presenting this method. With the help of very useful contribution by DL, and insights from Tarini65, Dk21 and others, this system is now pretty clear.

The key is definitely managing drawdown.

In post # 137 p10 you refer to trend bias and recognizing start of a new trend.

Could you please explain a bit more about how you recognize the start of a new trend?
How do you see "Pattern of a trend change"?

Is is about looking for slowing momentum and things like price stalling?...
  • #438
  • Edited 4:34pm Nov 15, 2011 3:50pm | Edited 4:34pm
Quoting garfield75
Interesting. All you orders are "BUY", there is no BUY & SELL basket order.
I bought some Yen pairs in the interim to bring in quick profits while I wait for my DD on my USD longs to reduce. The probability will likely have the trend continue short for Yen pairs. I know I am not trading this strategy perfectly...I'm just kind of throwing my hat in the ring. If I was allowed to hedge on same currency--you would have seen my PitBull indicator still showing all 5 JPY pairs with a .01 SHORT while I countered with some quick JPY longs. But hedging is prohibited, so I had to close out those JPY sells, put on a few buys, bank some $$$ then I'll put the .01 JPY yen pairs back on Shorts. We U.S. traders have to jump through a few more hoops to work this strategy . I'm learning to jump. Using some imagination, as Brijon would say. Now I concentrate on losing my floaties.
  • #439
  • Edited 3:51pm Nov 15, 2011 3:50pm | Edited 3:51pm
Quoting brijon
i cant swim for you

PIT BULL TRADER SHOWS YOU CLEARLY THE TREND FROM CENTRE LINE SELLS AND BUYS BELOW THE CENTER LINE

what THAT SHOWS CLEAR if the SELLS MAJORITY ITS A SHORT MARKET ---EQUAL SIDEWAY MARKET or LONGs

now its only looking at the numbers
but its the trend now based on price so if the trend is sell short how many total sells to buys equal bias neutral

ONE NEEDS CLEAR EYES AND WATCH

GOD BLESS BRIAN
Thanks Brian,
I know, I need to practice. Have a basket running with drawdown hovering around $ 185. Will monitor it closely.
EP
  • #440
  • Nov 15, 2011 4:03pm Nov 15, 2011 4:03pm
Quoting brijon
i cant swim for you



PIT BULL TRADER SHOWS YOU CLEARLY THE TREND FROM CENTRE LINE SELLS AND BUYS BELOW THE CENTER LINE

what THAT SHOWS CLEAR if the SELLS MAJORITY ITS A SHORT MARKET ---EQUAL SIDEWAY MARKET or LONGs

now its only looking at the numbers
but its the trend now based on price so if the trend is sell short how many total sells to buys equal bias neutral

if market is sell you may need eg more sells on than buys eg if you use 10 hedge could be balance sells 10sells to 5 buys

then you are in short bias which will help bring...
Thank you Brian,

This post makes real sense to me.

Hopefully I can now begin to control my drawdown.

I will keep you updated.

Regards.
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