Pit bull trading strategy by brijon

mobthehop thank you seems a light of reason finaly comes

amongs the infor mation if one is paitent reads the threas watches the videos

the light switches on

but if you lack patentience are rude disruptful you gain only the respect that is due

mobthehop (http://www.forexfactory.com/mobthehop) god bless you from brian

Can you please share the indicator "strength meter".

Cheers

currency strenghth meter

on the desktop fast warning of eco news

Playing today with the method I've had pretty good success. Everybody's asking how can you control DD? As I've been hedging all of my trader life here's the short answer: There is not ONE way of doing it. So people asking Brian HOW will not get ONE (THE) answer. You have to find your own (multiple) ways. Sorry to pop your bubble but whoever insists Brian tell THE SECRET only shows you are new to this business. It makes me chuckle when I see people sticking their head through the door and yelling at Brian to give them the answer... NOW.

So here's what I did today... It's true, today was a little special as the fat lady not only stepped on the stage, she fell through it and people are looking for her in the basement now...

You need some rules, before you start trading. Here are mine. Do they work in the long run? I don't know. Not enough testing. They did work today. Where was I? Ah, the rules:

1. Ten trades for the indi.
2. Take the one in the highest profit, close it and add a new trade in the same direction three times larger.
3. Wait. In general it will float right at the top. Wait for it to drop back down in the bottom half of the grid.
4. Take the next indi trade in the highest profit close it and open another trade three times larger.

Let's take a break and think of what we did. So we had 10 trades, 0.5 lots each. At his point we have 8 trades 0.5 out of which 5 are losing money and three are making money. But we also have two 0.15 trades that make money. These two cover how many losing trades? All of them plus one to spare. So overall we have 4 trades that make money, everything else is pretty much hedged. It's late, did I lose it in this simple arithmetic?

While all these are good what could happen is the pairs might start retracing right after we put in the larger trades. What's the consequence of that? The two trades will shoot up at the top and the grid starts being messed up (buys mix up with sells, things going up/down etc). I hold through this as long as the grid doesn't go the opposite direction than my larger trades (i.e, if I am long I hold as long as the bottom half of the gird does not become sell). Of course I'm looking at my charts for s/r and what does the price do around them. If everything goes against me, I close the trades, and re open the 0.5 ones to balance the hedge. I know it's not pretty but it is what it is, and at the end of the day... wait it was about 3-4 hours, I had $100 bux NET profit (I did close a couple at a loss. As a matter of fact I was too quick because they would have been good trades without much DD) and the hedge in profit as well.

5. When do you close the profitable trades and open the 0.5 (for hedge balance)? It's a little complicated. I think the best is around obvious s/r points , price hesitation or if it runs, just let the damn thing running until it doesn't. Watch the PA around s/r.

so here is a core basket of line chart ,which confirms the trend, the tick seperated volume gives you buyers and sellers, the curency meter gives you the individual currencys strength

so one has the indicater for those that likes to use this way as sujested by mobth all these are available on my other thread with videos how you put on offline charts ect

so one can confirm the trend of the 14 the buyers sellers and the individual currecy strenghths

THERE ARE ACTUAL GOOD TRADERS ON HERE THAT KNOW HOW TO TRADE

attila (http://www.forexfactory.com/attila) great job at last a shining light a trader that is trade savy

one of the 5% that makes money trading the forex

doesnt need to show me proof he just did in his post


ONE SHOULD FRAME HIS POST ON THERE WALL


THANK YOU

GOD BLESS YOU FROM BRIAN

I agree. I just finished reading this whole thread and Attila has recently posted one of the most intelligent posts here (with all due respect to you Brian).

I am in Vancouver Canada so I am heading to bed now but I have been a trader for over 5 years (successfully over the last 2) and love what I see here but I am tired and will have to respond in more detail tomorrow.

My very brief summary is this: Brian is 100% correct. If you concentrate on account leverage management (margin) and the management of Drawdown you will win. If you don't, I almost 100% guarantee that you will lose no matter what “holy grail” system you find. PERIOD.

For those of you asking Brian or anyone else for a "STEP BY STEP" how to do this, watch my lips: Fantasyland doesn't exist!!!

Brian is 100% correct that the only way to become accomplished in account management is to spend a HUGE amount of time watching and practicing the account leverage management and Drawdown management. If you accomplish this I believe you will succeed.

I remember some kind of EA that was based on a coin toss. If heads, go Long, if tails, go Short. It didn’t matter. Just enter the market and then use leverage and drawdown management to make money.

Brian’s concept simply tips the scale of entering the market on the positive side of probability but even then, if you don’t manage margin or drawdown, YOU WILL LOSE.

More tomorrow.

Thanks

Dave R.

ps. It is my personal opinion that you have to reset (close) Brian's "Indicator" every so often depending on the "ranging" or "trending" nature of the market because if you buy and sell often with the bottom three positive pairs, eventually the indicator becomes distorted and you need to reset and start over.

At this point, I have no idea how often this should be or more importantly, at what point in the Ranging or Trending nature of the market it should be enacted.

Brian's input is needed here.









+

Attila, that was a wonderful post on how you manage your basket.
What I had been doing was close the biggest winners and replace them haphazardly without taking into consideration the losers and later finding the drawdown getting way too large, the basket usually ending with too many big losers and one or two little wins left. I mistakenly thought at first that the trades I already closed or 'money printed' (love that phrase) would somehow balance out those still in DD.

Never done any hedging before but with your post I'm beginning to get an idea what it's all about. When Brian says learn to control your drawdown, I think he really means learn how to hedge. That's how I see it anyway.
Attila, your clear explanation on how you manage your basket has been a lightbulb moment for me. Thanks!

yes Attilas post was clear and precise word for word IT was great so is yours its not my strength comunication in writing

you have nailed the reset of the indicater , for its efectiveness

when it stops producing signals + minus you have 2 choices

one to add on top of .1 a second group balancing the bias so say additional trades based on the last slots 5

as an example suprising this helps you but raises your dd as its demo i dont care

especialy if say the account has grown from 5 to 10 k

the drawdown can go back so you liquidate your winnings

im using it as an indicater only this demo

SO THIS IS A GREAT QUESTION I LOVE IT

its like rinse and repeat

the advantage is i can add to this indicater till the margin gets close to using up the account down to 5 k

if that makes sense its only an indicater

of course the usa guys have less room to do this

this has a super side benifit as you can time your next lot of buys and sells to actualy give you a trading range indicater eg new trades on say audusd buy on top you place .01 uniy order it can give you an indicater within the pit bull trader

but to stick to the point eventualy you need to rinse and repeat so the fantastic sales growth on demo alows you to do that especially were you are alowed great marjin accounts


THE REAL TRADING IS ON ANOTHER ACCOUNT AS THIS IS FOR AN INDICATER AND FOR PRACTACING DRAWDOWN CONTROL

NOW ITS SIMPLE MATHS ON THE LIVE/ DEMO OF USING THE SIGNALS FROM THE DEMO ON THE LIVE/ NEWSECOND DEMO

first three trades is .o3 or .3 or proporton of one lot depeding on account

size eg 3 currency trades of .o3 = ,o9

you need to think using bias of this new grid

the next 2 are .05 2 trades .05 x 2 = 10

so depenting on the mix you can direct the bias either long or short

most traders will not understand me but cool traders will twigg

thatS if you use the same exist strategy using say 15 pips profit you can have a 1.5 raTio of sales to stock very easy

its only master and twig bias with trades
ideal sell bias 3 trades .o3 long 2 trades .o5 short

its a juggling game of bias and orders

but of course only a trader use to using hedge bias to the trend and changing bias as the trend changes will understand me

but the maths simple works

SO IT CAN BE .O3 .3 OR I LOT AND 2 LOTS ITS A QUESTION OF ACCOUNT MARGIN ACCOUNT SIZE AND YOUR REWARD RISK TOLERANCE

OF COURSE USA GUYS ARE AT A HUGH DISADVANTADGE RE MARGIN
AND NOT BEING ABLE TO USE SAME CURRENCY HEDGING and good biasing control


IVE TRIED TO INCORPERAT THIS INTO THE EQUASION AND

NOT USE SAME CURRENCY HEDGING IN THE DISCUSSIONS

OK IN CONCLUSION OF YOUR QUESTION

( THERE ARE MANY WAYS TO SKIN A CAT AUSSIE SLANG)

YOU CAN SIMPLE RINSE AND REPEAT YOUR INDICATER EVERY FEW DAYS OR WEEKLY DEPENDING ON THE VOLATILITY
AND THE PIT BULLS EFECTIVE NESS TO GIVE YOU NON STOP +OR MINUS

signals

OR BUILD ON ADDING MORE .01S TILL YO GET NEAR USING UP YOUR MARGIN THEN RINSE AND REPEAT ITS ONLY A RELACE ABLE INDICATER

DONT FALL IN LOVE WITH THE PROFIT ITS A TRAINING TOOL AND AN INDICATER

the real trading is done on a real demo or live

now if you can read betwwen the lines and understand trend bias trading you will get it


sorry
the others wont have a clue

they need experience and loads and loads of practacing drawdown

i make no appoligies of advancing explanations for only experieced traders bias hedge traders

this not for beginners to grasp advanced bias trend trading


so shout, scream you will be blocked

just practice practice as long as it takes no one gave me my ezxperience i had to practice learn my self

if you dont understand then you never traded muli currency trading and just followed rules blindly

you realy never practiced and tested ideas on your own

so ny answer is there abeit in my way otheres can write clearly but if you dont practice wf are you doing trading the forex

sorry but it may be rude but im honest

god bless you from brian

hi guys

i am facing the dd management, and actually i found a way to manage it .

my aim is to drive the basket in positive and close it all together .

on the road to reach this goal you will open countertrades or hedging, new position ecc .and you can print money

but the goal should be having a positive basket .

this mentally helps to keep a very low dd .

Have been busy practicing drawdown control and can see the potential in the Pit Bull Method.

Post # 136 p10. by russ 1978 was very useful and studying the blotter was eyeopener.
More recent posts by mobthehop and attila #s 519 & 525 p35 are also helpful.

BUT, to be profitable it is essential to trade a live account.

Even a 3 pair basket of 0.01 lots in a small account can quickly result in a margin call.

So, had to open a basket in demo account and allow the pairs to settle. Then select just 1 fast moving pair to trade. The drawdown techniques are useful to rescue trades that stall.

Now, looking for an indicator similar to Basket Trader, to identify the strongest pair, so will not need to open multiple charts.

Thanks, again Brian.

EP

Just trying to get a feel for how the basket oscillates I set it up last night before bed (US) and woke up this a.m. to find it positive +600.00 usd on 1.0 lots.

I've done this twice with the same result each time. Obviously it can go against you just as much but isn't that what we're practicing for? No sweat. Even if it does go against you it appears if you wait long enough with no intervention it will come back nicely in your favor. Not saying you should build a system around just waiting for it to get back to positive territory but an interesting observation on how it cycles nonetheless.

Thank you all. I would also suggest read the first part of Brian's 3WM thread. That will give you another edge for entries/exits.

Don't do it. Theoretically yes. The currencies FLOAT (they don't diverge forever) against each other and eventually will come back. The question is, can you hold through huge draw downs when money is at risk?

I wouldn't let it run too long, 24 hrs max before working on DD if it hasn't swung back to net profit....that is if I were going to even attempt this live. Like I said, not trying to build a strat on just letting it sit there, just noting the behavior of this "PitBull".

Quick helper point. These are not part of the basket but if you watch them they pretty much always go the other way than the basket: usdcad, usdchf, gbpchf. When they go down the basket bias is long, etc. OK, off to trading. See you later.

ok i started off well, making and printing money

DD was in control

now of course the original trades been open for a while and now i cant judge which is strongest or weakest because they so far apart from each other plus and minus wise. It will take weeks now for one of my indi trades to come into the plus to show me open a new trade

This is as good a description as anything I've seen on how to manage the drawdown. This, of course, is what Brijon has been saying all along, that managing drawdown is the key.

I would also encourage everybody to not trade this method according to my PDF, for it contains nothing on drawdown as far as actual steps to manage it. My demo account was just margined out because I had no real way of controlling drawdown. We need to heed Brijon's instruction to learn how to manage it.

Also, for all of you PMing me saying you were blocked from Brijon's thread here, I can do nothing about that. Your main question has been "Nobody can show me how to manage the drawdown, how do I do that?" I have no answer for you; obviously with one account margined out I have no answers as to how to properly manage drawdown. Please no more PMs telling me you were blocked and asking how to manage drawdown, I've received a huge volume of these PMs and cannot possibly answer you all. This is not my method and I do not have the answers as to how to trade it. Thank you.

I ran in to the same problem but came up with a fix for myself to make it easier to see trend bias and control DD.

For myself i am using .01 lots as my indicator base. I never sell this base. Once the pairs all settle in and I can see bias, I will add new orders at .03 for the bottom 3 slots. I will watch those .03 trades and when they move back down to one of the bottom 3 slots again, i will then close that trade. If my original .01 indicator trade is still sitting in one of the bottom 3 slots, I will replace the closed .03 with another trade. If at some point my .03 moves back to the bottom 3 slots, but the other .01 indicator trades are scattered throughout (meaning we have no current direction) I will close that .03 trade but won't replace it until everything gets back into order. I will never have more then three .03 trades open at once just in case the bias changes. That will prevent becoming too top heavy on the .03's which just makes it harder to control DD.

Of course i'm still testing this method but so far so good.