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The Seventh Wave

  • #21
  • Dec 12, 2011 4:09am Dec 12, 2011 4:09am
Quoting Hugh Briss
The ea is on the first page, you can set it to close all positions at a set equity level above and below your current equity so effectively it is a basket tp and sl. I like it.

How are you deciding when to open and close the baskets? Do you have a certain target or time based?
I have an H4 candle that forms 1 or 2 hrs in to the london session depending on daylight savings, so i will open then.

As for the close, there are a few options.

1. if the basket goes negative by $250 i close manually. (1% account balance)
2. if the basket goes positive by $500 i close basket manually. (2% account balance)
3 if after 48hrs the basket is hovering around BE ill close manually.
  • #22
  • Dec 12, 2011 4:26am Dec 12, 2011 4:26am
a little more on my entry requirements. in the chart below the green cirle on top shows fast moving average above the slow moving average indicating market will go up, the lower green circle shows the tdi crossing down which indicates the market will go down. here we have conflicting indicators so i wouldnt include that pair in my basket.

the pink circles show indicators in agreeance, therefore i went short.

ATR is also on the chart but you can ignore that

currently up approx 300 pips
Attached Image (click to enlarge)
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  • #23
  • Dec 12, 2011 4:39am Dec 12, 2011 4:39am
Quoting 33drifter
a little more on my entry requirements. in the chart below the green cirle on top shows fast moving average above the slow moving average indicating market will go up, the lower green circle shows the tdi crossing down which indicates the market will go down. here we have conflicting indicators so i wouldnt include that pair in my basket.

the pink circles show indicators in agreeance, therefore i went short.

ATR is also on the chart but you can ignore that

currently up approx 300 pips
Fair enough. I'm not sure the indicators moving up mean that the price will go up but I know what you mean.

GBP just snapped back sharply, maybe news about? Anyway, I've sold eurusd and added on to gbpusd and gbpjpy. Equity reached a max of 276 so halfway to my target, let's see if these add ons can push it up to the 300 level.
  • #24
  • Dec 12, 2011 4:46am Dec 12, 2011 4:46am
[quote=Hugh Briss;5214724]Fair enough. I'm not sure the indicators moving up mean that the price will go up but I know what you mean. quote]

yeah that was a quick explanation, but (for anyone reading this that doesnt know what i meant) basically with a moving average system when fast moving ma crosses above the slow moving ma you buy and vice versa for a sell.

what does your MM look like at the moment, what is your R:R etc. ?
  • #25
  • Dec 12, 2011 5:20am Dec 12, 2011 5:20am
[quote=33drifter;5214753]
Quoting Hugh Briss
Fair enough. I'm not sure the indicators moving up mean that the price will go up but I know what you mean. quote]

yeah that was a quick explanation, but (for anyone reading this that doesnt know what i meant) basically with a moving average system when fast moving ma crosses above the slow moving ma you buy and vice versa for a sell.

what does your MM look like at the moment, what is your R:R etc. ?
Well my initial risk is 30 gbp at the start of the basket but as the equity moves in my favour I will move the equity stop to break even. I am targetting 50 gbp so my initial r:r is about 1.6 and I'm yet to see a basket go backwards by 30 gbp so r/r acceptable for the strike rate of the system.
  • #26
  • Dec 12, 2011 5:20am Dec 12, 2011 5:20am
Gbp is really messing me up at the moment, looks as though this first basket may stop out at break even.
  • #27
  • Dec 12, 2011 5:39am Dec 12, 2011 5:39am
Right, I've closed out all the bad trades and doubled up on some of the good ones. Equity about 5 pounds up so hopefully will continue up. The absolute worst that can happen is that I will get stopped at break even on the basket.
  • #28
  • Dec 12, 2011 6:39am Dec 12, 2011 6:39am
Well, despite my best efforts I managed to be stopped at break even on this basket. Mildly frustrating but bound to happen sometimes. Top equity achieved was around 276 which is halfway to the target, just a shame some choppy pullbacks on jpy and chf pairs and also a big pullback on the gbp went against me.

I am just looking through and deciding whether to open a basket for the ny open in a little while or whether to leave it until this evening.
  • #29
  • Dec 12, 2011 3:15pm Dec 12, 2011 3:15pm
currently up about 500 pips, looking for 500 more.

A question about the EA, do i place it on any chart and it controls all trades or does it get placed on every chart?
  • #30
  • Dec 12, 2011 3:47pm Dec 12, 2011 3:47pm
Quoting 33drifter
currently up about 500 pips, looking for 500 more.

A question about the EA, do i place it on any chart and it controls all trades or does it get placed on every chart?
The equity guard controls the equity of the account so just one chart. The trailing stop can be just put on one chart and set it to manage all trades.

Nice basket, good one. I'm probably going to wait until the morning before I open anything now.
  • #31
  • Dec 12, 2011 4:30pm Dec 12, 2011 4:30pm
Quoting Hugh Briss
The equity guard controls the equity of the account so just one chart. The trailing stop can be just put on one chart and set it to manage all trades.
So with the inputs, is 'maximum target' my take profit level.

i.e. if my account balance is 10,000 and i want to take profit at $500 i set maximum target to $10,500 and the EA will close all trades?
  • #32
  • Dec 12, 2011 11:49pm Dec 12, 2011 11:49pm
Quoting 33drifter
So with the inputs, is 'maximum target' my take profit level.

i.e. if my account balance is 10,000 and i want to take profit at $500 i set maximum target to $10,500 and the EA will close all trades?
Yes, that's it.
  • #33
  • Dec 13, 2011 12:26am Dec 13, 2011 12:26am
Another basket opened. I don't have time to post charts but I'm basically long all chf pairs and short gbpusd, long usdcad.
  • #34
  • Dec 13, 2011 2:06pm Dec 13, 2011 2:06pm
So i didnt get a chance to put the EA on last night, i let the trades run

up about 1300 pips at the moment
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  • #35
  • Dec 13, 2011 2:19pm Dec 13, 2011 2:19pm
I am just wondering about this concept of basket. In case of shares you do this to diversify among different sectors as they can't go up & down at the same time. But in case of currency say in your basket right now, you are bearish on EUR, GBP and Bullish on USD.

Say if you had all these contracts on EURUSD rather than spread out on other pairs, won't it give you same results and would be better to manage as you have to deal with one chart?
  • #36
  • Dec 13, 2011 2:38pm Dec 13, 2011 2:38pm
Quoting 33drifter
So i didnt get a chance to put the EA on last night, i let the trades run

up about 1300 pips at the moment
Nice one. I didn't blaze a trail this morning but tweaked into those eurusd, eurgbp, audusd, gbpusd, nzdusd, etc shorts so looking a lot better as we speak.
  • #37
  • Dec 14, 2011 1:20am Dec 14, 2011 1:20am
I've decided on a change to the system. Rather than take profit at a set equity level I'm going to treat each trade individually and trail the stop loss. This means that there will be a few more stopped out and a few break evens but it should in theory be possible to catch nearly every big move. I find if you are trading with the trend it is just a matter of patience before the price puts in a nice move in your favour and there are some really big gains to be had. Also by trading every pair that is trending strongly rather than limiting your exposure multiplies your gains (and losses) but as long as you keep your losses small and allow the gains to get really big then you'll be quids in.

The way I see it trading conservatively from daily charts you would take maybe 2 or 3 trades a month of which one might be a big winner, one a break even and one a small loss. This way by using a slightly smaller postion size you can take multiple lower quality trades (as long as they are in the direction of the trend) and get a similar ratio of small losses, break evens and big wins but overall because you were on every trade that moved big your gains would be much more. This is what I have experienced so far anyway. I actually find it difficult to get a basket of trades beyond 30 gbp down, it's like magic. Like anything else it seems that the trend is the most important thing followed by controlling your risk.

With the above in mind I am going back to 200 pip trailing stops which will be moved manually as necessary.

The basket this morning consists of all eur pairs short, xxxusd short and most usdxxx pairs long with the notable exception of usdjpy. I'm still long gbpchf and also long gbpnzd. Short chfjpy too.

I can't do charts as on my little laptop. I'll post an update later. Probably be not much tweaking today as I'm planning to hold these trades open until I get the maximum amount of pips I can or I get stopped out.

Current profit floating around 37 gbp but that may pull back a little as last nights pushes pull back a little and then hopefully there will be a nice strong move in these pairs during the day or maybe I'll have to wait til tomorrow?
  • #38
  • Dec 14, 2011 2:11am Dec 14, 2011 2:11am
Things are starting to move now. Just over 60 gbp in profit on open trades
  • #39
  • Dec 14, 2011 4:52am Dec 14, 2011 4:52am
Quoting Itsme1967
I am just wondering about this concept of basket. In case of shares you do this to diversify among different sectors as they can't go up & down at the same time. But in case of currency say in your basket right now, you are bearish on EUR, GBP and Bullish on USD.

Say if you had all these contracts on EURUSD rather than spread out on other pairs, won't it give you same results and would be better to manage as you have to deal with one chart?
we are playing a numbers game, if a particular system has an 80 out of 100 success rate and we place 1 trade a week its likely that we could go a month or two with no winning trades, if we place 10 at a time then the law of averages says we will hit the 80% success rate quicker.

basically the same concept as flipping a coin, the more times you do it the closer to a 50/50 split you get.

there are other benefits to do with hedging but i cant explain it one post, best to check out the other basket trading threads.
  • #40
  • Dec 14, 2011 6:08am Dec 14, 2011 6:08am
Quoting Itsme1967
I am just wondering about this concept of basket. In case of shares you do this to diversify among different sectors as they can't go up & down at the same time. But in case of currency say in your basket right now, you are bearish on EUR, GBP and Bullish on USD.

Say if you had all these contracts on EURUSD rather than spread out on other pairs, won't it give you same results and would be better to manage as you have to deal with one chart?
Sorry, didn't see your post because it must have been waiting to be approved. I've seen drifters reply and he's got it dead right.

My view on it is that if you take one trade for 0.1 that trade must go right in order to make you money. If it goes against you or sideways you make nothing. If you take 10 trades at 0.01 there is no need for all of the trades to go your way, some could make you 200, 300, 500 pips, some could lose you 200 pips and some could go nowhere. Should they all go bad then you have a total equity stop loss in place. By taking multiple trades you are spreading your need to be right, you could be wrong plenty of times but still have enough trades to make you money.

I hope this helps.
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