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Pitbull Trader with Position Building

  • #21
  • Jan 3, 2012 6:18pm Jan 3, 2012 6:18pm
Hi,chips

I never hear of the indicator or the system before,but im interested in what you have posted.
So,would you please post more about the indicator and the system?

Sorry for my poor English.
And thanks a lot.
  • #22
  • Jan 3, 2012 6:31pm Jan 3, 2012 6:31pm
I Use Pitbull to Trade the market as a business.

control other ppls money( broker) ...Sales increases Equity

Because Pitbull gives a high and accurate hit rate..I can BE positions with depleting my base capital. I'm doing this by controlling the DD. using the techniques listed.

These positions will grow for hundreds of pips in the weekly direction.

While doing this I can take small profits ..increasing by bal and reducing DD also.

So its a versatile system.

I have no emotions attached to my BE positions as they will eventually manage my DD bal each day the market move in my favor.

OR the market could turn and take out the position either PITBULL allows me to trade the fastest moving currency, while exploiting SWAP interest and short-term sales ..Rapid Stock turnover.

I will post another screen on the Pitbull
  • #23
  • Edited 7:36pm Jan 3, 2012 7:24pm | Edited 7:36pm
I'm currently holding the position..

All the buys are aligned together meaning the Trend is long.

Currentlythe market quiet also.

Major Trend change : Sells currency are replacing the BUYS. I'm using the Bottom line as my trading pair.

I can also trade the top pair counter also becuase my broker allows it.

Notice the DD is at positive. I haven't lost and entry for today.

I managing DD and now it good I not in a rush to close +ve position either as Pitubull will run and sync with market most of my positions are at BE so no risk there.

I will go and BE more positions in the LONG

The swap roller trade is coming up for AUDUSD END of closing Wednesday BUY before 4:59 EST. another DD management technique.

Pitbull will reveal when and where the money is flowing.
Attached Image (click to enlarge)
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  • #24
  • Jan 3, 2012 8:41pm Jan 3, 2012 8:41pm
so you close these manualy when you feel that profit is enough?

Im coming to the pary late i guess
  • #25
  • Edited 10:56pm Jan 3, 2012 10:10pm | Edited 10:56pm
Quoting tommbstone
so you close these manualy when you feel that profit is enough?

Im coming to the pary late i guess
Take profit whenever you need to Only on the .04 trades the other stays as they are you indicator trades for the Pitbull

closing profitable trade increases your account balance and your account equity but -ve trades have a -ve effect on your equity.

So you can use more -ve trades up to your Max limit say 10% of account bal and Just keep taking profit. Then you can start balancing your DD by using the techniques

Stop taking trades and apply DD management techiques
hedging.. this freezes your loss if your broker allows it. If not another will provide the hedge you need you look and see
SWAP interest on AUDUSD
Position reduction
Ratio of BUYS TO SELLS following the trend
volatile periods.
Dead markets No trades exercise patients

Remember also at anytime the basket WILL go into profit. this is because some currency moves faster than others on specific days.

Brijon called this polarity of currency

Once DD is down manageable amount...start taking profitable trades again.

The cycle never ends unless you close the basket( all the .01 indicators) in profit

i'm sure there are more exploits I willing to learn new things

About roller over
now I know why AUDUSD is a buy late wednesday before 5pm and a sell shortly after.
Exploit: triple swap interest is paid to your account if you are long on this pair.
  • #26
  • Jan 4, 2012 12:30am Jan 4, 2012 12:30am
I also like this method but you have added some interesting things to this to control drawdown that I couldn't wrap my mind around in the previous thread.

Thanks for the thread and I am curious to see it continue.

Quoting chips
Take profit whenever you need to Only on the .04 trades the other stays as they are you indicator trades for the Pitbull

closing profitable trade increases your account balance and your account equity but -ve trades have a -ve effect on your equity.

So you can use more -ve trades up to your Max limit say 10% of account bal and Just keep taking profit. Then you can start balancing your DD by using the techniques

Stop taking trades and apply DD management techiques
hedging.. this freezes your loss if your broker allows it. If not another will...
  • #27
  • Jan 4, 2012 1:56am Jan 4, 2012 1:56am
Hi Chips

 Thanks for starting this thread.

This is one of my favourite methods of trading and have been following and using it for about 3 months with good results.
 I posted my trades from yesterday in the old thread as there are still a few viewers. Hopefully they will arrive at this thread.

 I like the way that brijohn used business terms to explain pit-bull and thought I would write how I see this and clarify my thoughts on it.

 In business you have...

Equity
The company balance sheet. This details the companies worth (assets less liabilities) at a given point in time.
 This is your trading account balance (initial deposit plus profits from trades and minus loss trades and charges... don’t forget taxes!).

Sales.
All businesses have to continuously make profitable sales to grow and obtain a return on investment for the business owner and grow the Equity
 Our sales are our trades.

In businesses some products you offer will sell for profit (profitable trades) and some products you offer will not sell at you given price (loss trade).
The business must turnover its stock (stock turn) to generate cash flow so they can buy new stock and pay bills etc so the business can function and it’s a continual cycle. Without cashflow a business will not survive.

 Businesses often stock products that do not sell for profit and the owner must decide to cut losses and either sell the product at the price he paid to return some cash into the business, or sell at a price lower than paid and take a loss on the stock.
No business owner has a crystal ball and so no guarantees can be made if a product (trade) will be profitable or not. This is part of the risk.
 The sales and inventory have to be closely managed to ensure there are far more profitable sales than losses
Trends develop in all markets and the smart business owner will exploit the trend and sell the fast moving products.
 Often small profit margins but high volume of sales is important, other times it could be less sales with higher profit margins. Reacting to what the market is telling you is critical.


Draw down
Draw down is similar to a business overdraft. The bank will provide the business with a overdraft limit with which the business can operate. This is effected by leverage/lot size etc
On times the business will use little of the facility and on other times much of the available credit is used if sales are not going well or costs are rising over sales turnover and margin, or unexpected costs arise (loosing trades) in the business.

The business owner must pay close attention to his banking limits and adjust his operations to meet the limit commitments.
 So when the basket of trades is open and trading takes place managing the amount of drawdown (overdraft) and keeping strictly with its limits critical.
Using the overdraft is using other people money to grow your business which in someway is similar to number and size of trades (leverage).
If a business owner does not keep iron grip control over his Stock and Sales (his trades) and his overdraft (drawdown) he could find he has used his banking facility to its limits and the bank will not support further borrowing.
 In this scenario the owner has to cut costs and increase sales, find further equity from investors or even inject further personal capital (margin call!).

Obviously this is a pretty basic overview and takes no account of technical analysys which takes place in all business (product, design, packaging, distribution, margin, costs, numbers, marketing, etc) and fundemental analysis - whats happening in the micro/macro market place and economy.

So in a nutshell, Is trading no different or riskier than a traditional business because all the varients apply to both. Some businesses florish others crash and when a business crashes the owner often faces losses greater than his initial investment (taking no account of the mental and relationship price)?

 Anyway, thanks for starting this thread.

Cheers
  • #28
  • Jan 4, 2012 2:44am Jan 4, 2012 2:44am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting chips
I am most grateful to Brijon and Grame.

Sucessful trading requires that you generate low-risk ideas and act upon them by Van Tharp.


For 2 years I being searching for system and I have found it.

PITBULL TRADER INDICATOR
This shows volatility, Currency strength, Entry timing, Trend, Exit, Ranging.

Buys:
AUD/USD
NZD/USD
EUR/GBP
EUR/USD
GBP/USD
Sells:
USD/JPY
NZD/JPY
EUR/JPY
GBP/JPY
AUD/JPY...
you should also consider the jumping pairs for your future developement
once the basket is settled into a trend direction you'll start to notice the middle 4 pairs will flip, once a pair move 3 slots it's generally aiming to the end of the group and will also signify the end of the trend (or at least a retracement is coming) so can be traded in the direction of travel for a bonus pip count.

to understand baskets you should seek the threads created by trader 101 (aka T101) this is the origin of the idea and gives a link to the true birth place - but it's takes some reading.

best of pips - it's nice to see a continuation of this method
  • #29
  • Jan 4, 2012 3:11am Jan 4, 2012 3:11am
Chips

Well done for keeping this method alive.

There are plenty of people trading this method and a few who are interested in trying it out.

Hopefully the thread will be allowed to be developed and traders will give it a chance.

For those unsure of the indicator used just download the script that has been posted, place onto onto a clean chart and use either 0.01 or 0.10 if using $5000 demo and above, candles,lines bells, sirens not required. Keep it clean.

Over the course of the day watch the pairs, they will settle down into profit and loss. This is your indicator!!

Chips, Courtney and I have our own individual way of trading the Pitbull, read this thread and any others that you can find.

More later.
Attached Image (click to enlarge)
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  • #30
  • Jan 4, 2012 4:21am Jan 4, 2012 4:21am
Thanks Brijon and Graeme and J16
I have been trying to find the right style to will help me make the right trading ....................

Hi Chips

When you mention Graeme above are you refering to PIPEASY : Building An Equity Millipede ?

Thanks
Once You See, You Can't Unsee But You Will Get The Odd Poke In The Eye
  • #31
  • Jan 4, 2012 7:40am Jan 4, 2012 7:40am
Hello Chips,
Thanks for opening the thread.I was following the Pitbull thread but could not understand how to control the DD part.
I will follow your thread with great intrest and try to work hard to learn.Could you also let me who is your broker for live trading this method.I am from Toronto, Canada.
Thanks again.
Bhupinder
  • #32
  • Jan 4, 2012 8:38am Jan 4, 2012 8:38am
Quoting Stu Effex
Thanks Brijon and Graeme and J16
I have been trying to find the right style to will help me make the right trading ....................

Hi Chips

When you mention Graeme above are you refering to PIPEASY : Building An Equity Millipede ?

Thanks
Yes
  • #33
  • Jan 4, 2012 8:46am Jan 4, 2012 8:46am
I think buyers are looking for the tripple SWAP interest payment later today.

AUDUSD is on the bottom 2 slots in the pitbull. It's seems to be strong

Anyway in business you can't be 100% sure..

A couple of my investments die at BE overnight, but it cost me nothing and my DEMO broker gains nothing.

This is good for the business I am in.

Cheers
  • #34
  • Jan 4, 2012 8:59am Jan 4, 2012 8:59am
Chips.

Closed out for the day including my basket.

Results for first two days of 2012 attached.

I am being really cautious and not over trading.
My first trade 0.05 EUUS long went to DD so I hedged it when it hit -$28 and made good profit on the hedge trades.
Attached Image (click to enlarge)
Click to Enlarge Name: pit 2012 2.JPG Size: 188 KB
  • #35
  • Jan 4, 2012 9:20am Jan 4, 2012 9:20am
Quoting courtneywild
Chips.

Closed out for the day including my basket.

Results for first two days of 2012 attached.

I am being really cautious and not over trading.
My first trade 0.05 EUUS long went to DD so I hedged it when it hit -$28 and made good profit on the hedge trades.

Everyday I learn something new..Brijon said theres is no wrong or right way to trade..99% of Trading is controlling DD or Managing your account.

Protecting your capital while increasing sales using other ppls money
  • #36
  • Jan 4, 2012 10:36am Jan 4, 2012 10:36am
Thank you.
Chips and Erebus for your clarification.
  • #37
  • Jan 4, 2012 10:47am Jan 4, 2012 10:47am
Posted this on the original thread which is now defunct. Made two slight amends to original for clarity. Thought it may help.

How I use this method.

 

  1. I open 10 basket at 0.01

  1. Wait min 1 hour

  1. Trade only bottom two places. Hedge if trade enters settled DD.

  1. First trade placed at 0.05 or 0.10
  2. If move into stready profit enter another trade at 0.50.
  3. Stop set at 200 for disaster protection only.

  1. If a trade (.05 or .50) enters drawdown I close it at -$200 or hedge.

  1. I do not overtrade and try to limit orders to 4 trades to the basket (.05 .50 on bottom two pairs) (hedge may ad one)

  1. I do not look at charts. If I do I start to fall into trying to predict price move and stress goes up. I focus on profit/loss only.

  1. I have a master chart with group exposure and strength meter plus have added Sonics news headlines indi so I am aware of any danger news potential.

  1. I close basket each day and renew each morning.

Abiento.

  • #38
  • Jan 4, 2012 10:55am Jan 4, 2012 10:55am
Quoting courtneywild
Posted this on the original thread which is now defunct. Made two slight amends to original for clarity. Thought it may help.

How I use this method.

 

  1. I open 10 basket at 0.01

  1. Wait min 1 hour

  1. Trade only bottom two places. Hedge if trade enters settled DD.

  1. First trade placed at 0.05 or 0.10
  2. If move into stready profit enter another trade at 0.50.
  3. Stop set at 200 for disaster protection only.

[list][*]If a trade (.05 or .50) enters drawdown I close it at -$200 or...

Hi courtneywild

Thanks for sharing your method on Pitbulls trading.

Btw, I have some questions:

1. Did you close the 0.01 trade when u decide to open 0.05 or 0.10 or 0.50 trades?

2. What make you decide to either close it at -200 or hedge?

3. If you decided to hedge, do u hedge with same lots size or bigger lot size?

Thank you
  • #39
  • Jan 4, 2012 11:04am Jan 4, 2012 11:04am
Quoting courtneywild
Posted this on the original thread which is now defunct. Made two slight amends to original for clarity. Thought it may help.

How I use this method.

 

  1. I open 10 basket at 0.01

  1. Wait min 1 hour

  1. Trade only bottom two places. Hedge if trade enters settled DD.

  1. First trade placed at 0.05 or 0.10
  2. If move into stready profit enter another trade at 0.50.
  3. Stop set at 200 for disaster protection only.

[list][*]If a trade (.05 or .50) enters drawdown...

I wasn't sure when to close the indicator pairs. But it makes sense to start fresh every day.

Do you try to trade soon after (but not before 1 hour) the indicator basket is open? In other words, would it make more sense to open a basket at the beginning of the London session and trade when I get up in the morning (approximately 7 hours later)? Or does it make more sense to trade about an hour after the basket is opened?

Thanks for your contributions. I look forward to hearing from you and the thread starter more.
  • #40
  • Jan 4, 2012 11:32am Jan 4, 2012 11:32am
It's great to see people are continuing what Brian has started.

I'll be watching this thread carefully and I wonder how advanced it will
become in few months.

Thanx everyone

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