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Building an equity millipede

  • #5,081
  • Dec 6, 2011 5:48pm Dec 6, 2011 5:48pm
Quoting VEEFX
Thanks to Graeme, this is going to be my first profitable year in FX.. not by a whole lot but decent for a start.
That's great VEE! Nice!!
  • #5,082
  • Dec 6, 2011 8:02pm Dec 6, 2011 8:02pm
Quoting Pipskateer
I am finding IBFX to offer the best options for position trading. They have a backoffice workaround to the FIFO regulations which has been in place for about a year now, shortly after CFTC came out with that RIDICULOUS reg (I a SOOO tired of being "protected" by my intrusive govt!). FIFO is fine for futures markets that trading on an intra-day cycle where you are generally closing positions before market close. But it is ridiculous for position trading...

Anyway, I just wanted to mention they also offer nano, micro, and mini lots to help...
Way back when they came out with this solution, I recall they had mentioned that the back-office PnL statement will have 'minor' differences from what you see in the platform. Even though IBFX or other brokers allow to close positions in any order does not mean the net profitability in the long term will be the same. You might want to explore more with them first and before signing up. Since they are now bought by tradestation, it might be worthwhile to dig deeper and see if the buy out has changed any of their old policies.

just my 2 pips.
Staying in my lane...
  • #5,083
  • Dec 6, 2011 8:19pm Dec 6, 2011 8:19pm
Quoting VEEFX
Way back when they came out with this solution, I recall they had mentioned that the back-office PnL statement will have 'minor' differences from what you see in the platform. Even though IBFX or other brokers allow to close positions in any order does not mean the net profitability in the long term will be the same. You might want to explore more with them first and before signing up. Since they are now bought by tradestation, it might be worthwhile to dig deeper and see if the buy out has changed any of their old policies.

just my 2 pips....
Will do that...thanks for the heads up.
  • #5,084
  • Dec 7, 2011 9:40am Dec 7, 2011 9:40am
I've been entering mostly on Break-Outs. I've been getting stopped out nearly every trade I've made thus far. It's a small of 9 trades, but I've hit my SL at -30 pips 8 out of 9 trades. I'm thinking that I am not giving my trades enough breathing room so I am going to increase my larger TF trades to -50 pips. What has been a reasonable SL for you guys when attempting to trade with this strategy?
I just want to get my kicks, before the whole shit-house goes up in flames.
  • #5,085
  • Dec 7, 2011 5:43pm Dec 7, 2011 5:43pm
Sorry for the dumb question, but I havent found the exact word in dictionary..
What exactly is anticipation? What doeas it mean in detail? If somebody could explain this to me I would be grateful.

As for now - Anticipating market movement means that when candles forming I 'paint' the near future best possible price movement to the chart with my eyes and act accordingly. - for me.

Am I somewhat correct or not?

Thanks, Zol.
  • #5,086
  • Dec 8, 2011 8:58pm Dec 8, 2011 8:58pm
Hi anyone/everyone,

Does anyone has been using the round numbers for random entries or the ema/sma200 random entries strategies for any certain period of time? Can share the outcomes of these stratgies?

Thanks
  • #5,087
  • Dec 8, 2011 11:29pm Dec 8, 2011 11:29pm
Quoting Mjolnir17
Sorry for the dumb question, but I havent found the exact word in dictionary..
What exactly is anticipation? What doeas it mean in detail? If somebody could explain this to me I would be grateful.

As for now - Anticipating market movement means that when candles forming I 'paint' the near future best possible price movement to the chart with my eyes and act accordingly. - for me.

Am I somewhat correct or not?

Thanks, Zol.
Google is the best dictionary in the world....search any word using the define keyword like "define: Anticipation". It returns "The action of anticipating something; expectation or prediction.".

I use the power of anticipation as part of MTF analysis when I am looking for price action at higher timeframes and anticipate actions to take on lower timeframes. Just like playing chess...

you anticipate the 4-5 possible moves in advance of what your opponent 'might' take and have a game plan in place.

Translation of the above means....

if there is a tip of wick forming on higher TF, you switch to lower timeframe (one TF at a time) and look for (i.e. anticipate) a pinbar, flying buddah or whatever your chosen low risk entry setup is to trigger a probe and turn your anticipation into reality by executing a trade based on your hindsight and price interpretation.

Hope this helps.
Staying in my lane...
  • #5,088
  • Dec 8, 2011 11:33pm Dec 8, 2011 11:33pm
Quoting Tee3
Hi anyone/everyone,

Does anyone has been using the round numbers for random entries or the ema/sma200 random entries strategies for any certain period of time? Can share the outcomes of these stratgies?

Thanks
I have used 00 numbers successfully to 'skew' my stats while doing 3x20 exercise. The trick I use is ... if price approached rapidly from .50 upward or downward (like within a single 15 or 30 min candle), the probability of stop hunting at the next 00 level becomes very high. Taking a trade with 20pip TP at .80 or .20 price point has a higher change of hitting my 20 TP :-
Staying in my lane...
  • #5,089
  • Edited Dec 9, 2011 1:05am Dec 8, 2011 11:38pm | Edited Dec 9, 2011 1:05am
Quoting PugsMcGee
I've been entering mostly on Break-Outs. I've been getting stopped out nearly every trade I've made thus far. It's a small of 9 trades, but I've hit my SL at -30 pips 8 out of 9 trades. I'm thinking that I am not giving my trades enough breathing room so I am going to increase my larger TF trades to -50 pips. What has been a reasonable SL for you guys when attempting to trade with this strategy?
My posts will sound like I have become an expert which is far from truth but since not one seems to reply to such posts, here's my opinion.

Breakouts are still very frustrating for me as it requires gauging compeling momentum which does not fit my lifestyle. I can only make them work on 5M TF during asian and pre-london open hours for some weird reason. So don't focus on only Breakouts.. there are many setups to improve your skills using 3x20 exercise as Graeme suggests.
Staying in my lane...
  • #5,090
  • Dec 9, 2011 2:15am Dec 9, 2011 2:15am
Thanks for answering Vee. Things are clearer now.
  • #5,091
  • Dec 9, 2011 3:12am Dec 9, 2011 3:12am
http://www.forexfactory.com/showthread.php?t=298439

Above thread used a similar method like millipede... with specific in entering. Complement this thread..
  • #5,092
  • Dec 10, 2011 7:35pm Dec 10, 2011 7:35pm
Quoting PugsMcGee
I've been entering mostly on Break-Outs. I've been getting stopped out nearly every trade I've made thus far. It's a small of 9 trades, but I've hit my SL at -30 pips 8 out of 9 trades. I'm thinking that I am not giving my trades enough breathing room so I am going to increase my larger TF trades to -50 pips. What has been a reasonable SL for you guys when attempting to trade with this strategy?
I am new to this thread and still getting through most of it but if you need help concerning breakouts have a look at this thread. It also complements the method learned here less the indicators of course. It helped me out quite a bit on that topic. Hope it helps you....

Use the 10.1 version in particular

http://www.forexfactory.com/showthread.php?t=308304
  • #5,093
  • Dec 11, 2011 1:57am Dec 11, 2011 1:57am
Hello All, Millipede Builders at heart or at Balance... greetings:

Particularly to EmeraldEyes, Cameron1st, AlexandarSV, Runway, VeeFx, And Hanover , do drop by the thread http://www.stevehopwoodforex.com/php...p?p=2503#p2503 and allow us to benfit from your collective experiences with the concepts hare here, even as originated By PipEasy/Graeme.

Indeed, if we are able to automate the central concepts of Equity Millipede Building via Stacking Of winners, then we may all have greater sucesses in or various adaptations here of, via our very on tade entry method methods.

Bless!
  • #5,094
  • Dec 11, 2011 4:40am Dec 11, 2011 4:40am
Hi,

pathumracled - About automation, there might be systems out there that work (but they would be more suited for large accounts that are happy with small yearly percentage as profit), but in principle, I don't think the market can be fit in an automated system that does the same all the time. In my opinion the market can't be quantified... we can get some clues about what is happening, and based on those clues we make decisions and I doubt a computer program can replicate that thought process.

songbo & lionsden - As far as I know this thread was never meant to focus on a specific entry method, it is more of a blueprint on doing things. As seen in the initial pages of the thread Graeme is using a variety of confluences to make his decisions including Bollinger Bands, MACD, floor pivots etc to gauge what the other traders are looking at, so perhaps it is not a good idea to advertise another thread about entries in here... besides probably almost every fxfactory thread has something interesting in it...do we want to post all of them as links ?

Cam
  • #5,095
  • Dec 11, 2011 3:35pm Dec 11, 2011 3:35pm
Duly noted

Quoting cameron1st
Hi,

pathumracled - About automation, there might be systems out there that work (but they would be more suited for large accounts that are happy with small yearly percentage as profit), but in principle, I don't think the market can be fit in an automated system that does the same all the time. In my opinion the market can't be quantified... we can get some clues about what is happening, and based on those clues we make decisions and I doubt a computer program can replicate that thought process.

songbo & lionsden - As far as I know...
  • #5,096
  • Dec 15, 2011 7:27am Dec 15, 2011 7:27am
I hope Graeme is well and also hope he will come back with his book.
Anyone knows something about him?
  • #5,097
  • Dec 18, 2011 1:41am Dec 18, 2011 1:41am
Quoting VEEFX
Hi Guys,

Re-reading some of Graeme's posts and ran into this one. Just trying to understand the reasoning behind what I have highlighted in Magenta color.

- Why would Graeme close the largest legs of the largest group? I understand we got to be sensible and mix and match some legs across different groups and not set any hard and fast rules. wouldn't it make sense to close a few more medium term legs to raise capital balance?

- Another related question... How important it is to keep accounting of pips for...
hi veefx,
good questions..
I like to say my view why greame say like that...
Change in monthly trend is worth noticing since it requires lot of power for this change.
So not to lose the huge profit from the largest legs he like to close those legs.
Also he is having some smaller legs there if this is just whipsaw.

The above answer automatically answers your 2nd question too.
Since if you are not having good grouping of your legs, its very difficult for you to diversify, since you are not working around just 2 or 3 pairs and also you open positions might be some where around 40 or 50 if you are working with his method for atleast a year.

regards
ananth
  • #5,098
  • Dec 18, 2011 3:30pm Dec 18, 2011 3:30pm
Quoting ananthhh
hi veefx,
good questions..
I like to say my view why greame say like that...
Change in monthly trend is worth noticing since it requires lot of power for this change.
So not to lose the huge profit from the largest legs he like to close those legs.
Also he is having some smaller legs there if this is just whipsaw.

The above answer automatically answers your 2nd question too.
Since if you are not having good grouping of your legs, its very difficult for you to diversify, since you are not working around just 2 or 3 pairs and also you open...
Hey Ananth,

Not sure I agree with (or follow) your explanation of #1. Keeping the largest leg open is still the best option imo. Hypothetically speaking, if you have a short leg at yearly highs, it makes no sense to close the largest leg especially when you have long positions from the yearly lows.

Pip accounting is also crucial imo (took me a while!). Keeping track of realized pips on a pair benefits us in atleast two aspects....
(1) psychological - once losses of realized pips are recovered via diversification, the entire series of legs are pretty much risk free and checked out from your journal from daily tracking and monitoring. This aspect is important as we only pick a few good pairs to focus even though we have positions in 10-15 pairs. It also aids us in knowing where we are in a given 'opportunity scale' and when to reassure yourself that a given opportunity cycle is over and time to move on to another pair/setup.
(2) money/pip management - realized net pips per pair also gives the benefit of 'knowing' our performance on each pair and how many pips you should dedicate for next year. Since we are building long term legs in each pair, it is important to track pnl of pips you made this year and how many pips you want to allocate for next year's stacking (average on a monthly or weekly basis). For instance, if I have diversified 10,000 +ve pips in EU in 2011, you might want to withdraw 2000 pips as vacation money at the end of 2011, allocate 5000 pips for 2012 towards downpayment of stacking/probes (approx 400 pips/month) and leave 3000 pips towards compounding for account/margin growth. Over time, all this will becomes second nature and you will know how much you are 'allowed' to loose per week/month/pair thus eliminating the need for day to day pip accounting.
Staying in my lane...
  • #5,099
  • Dec 18, 2011 5:56pm Dec 18, 2011 5:56pm
Quoting pathumracled
Hello All, Millipede Builders at heart or at Balance... greetings:

Particularly to EmeraldEyes, Cameron1st, AlexandarSV, Runway, VeeFx, And Hanover , do drop by the thread http://www.stevehopwoodforex.com/php...p?p=2503#p2503 and allow us to benfit from your collective experiences with the concepts hare here, even as originated By PipEasy/Graeme.

[font=Calibri]Indeed,...
Hi pathumracled,

Cameron is correct in his response. To add further to his comments, any automated entry based system based on 'predefined' rules and actions are bound to fail over time. Graeme has said this many times as well. One might rightfully think that flying buddah strategy could be automated with concrete set of rules but that is not 'building the equity millipede'. It is just one aspect that Graeme shared with us. I use automation only as tools to help me with my trading but never for entries.
Staying in my lane...
  • #5,100
  • Dec 19, 2011 12:31am Dec 19, 2011 12:31am
Quoting VEEFX
To add further to his comments, any automated entry based system based on 'predefined' rules and actions are bound to fail over time.
wrong
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