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Pitbull Trader with Position Building

  • #41
  • Jan 4, 2012 11:43am Jan 4, 2012 11:43am
Exploit for balancing basket.
Notice on Wednesday...I invested short-term in the AUDUSD.
Tripple SWAP today at 5 pm credit...Just another method of Managing Draw DOWN.

usually buy try to get in at last min..this will run the price up and then they take profit after, run the price down..

Now it's not 100% so dont close your eyes and buy...Pitbull will tell you when, The strongest currency at the time.

Cheers
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  • #42
  • Jan 4, 2012 11:43am Jan 4, 2012 11:43am
Quoting Gothamcity
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

Well there is not much to it except printing money, follow the trend, balancing the basket and running the business cycle.

This is the way Big MAC does it..Some stores Open 24 hrs and make sales, sales and control the Operating cost..
  • #43
  • Jan 4, 2012 11:54am Jan 4, 2012 11:54am
Post your idea of Managing your forex Business.

Another common one is ...STOP TRADING....THINK ABOUT IT.

STOP ORDERING GOODS...OVERSTOCK
  • #44
  • Jan 4, 2012 12:30pm Jan 4, 2012 12:30pm
What is entirely unclear to me is what to do with the pair when a hedge is used on it. Buy Pair A goes into DD. Trade decides to hedge Pair A by selling Pair A. So no gain or loss is made from that point on relating to these two entries. What do you do next? When do you close them out? What can be done to reduce the DD that is now fixed due to the hedge?
  • #45
  • Jan 4, 2012 12:38pm Jan 4, 2012 12:38pm
I have the same issue here that I had with Brijon's explanation. You mention closing when the basket is in profit but, at the same time, state that you only trade one pair. One currency pair is not a basket. Sorry to be obtuse but, some rational explanation would be most welcome
  • #46
  • Jan 4, 2012 12:54pm Jan 4, 2012 12:54pm
I could be wrong but my understanding is that if your entire hedge (all 10 currencies) are in profit or maybe at 2:1 profit/loss you can close the entire basket of trades for an overall profit in equity. You then would just restart your hedge and watch what currencies go into the bottom slot all over again.

I started a hedge yesterday and these were the results. Not great and getting used to it but the drawdown was kept under 5%.



Quoting Alan5616
I have the same issue here that I had with Brijon's explanation. You mention closing when the basket is in profit but, at the same time, state that you only trade one pair. One currency pair is not a basket. Sorry to be obtuse but, some rational explanation would be most welcome
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  • #47
  • Edited 3:15pm Jan 4, 2012 1:01pm | Edited 3:15pm
Quoting Alan5616
I have the same issue here that I had with Brijon's explanation. You mention closing when the basket is in profit but, at the same time, state that you only trade one pair. One currency pair is not a basket. Sorry to be obtuse but, some rational explanation would be most welcome
Do me a favor, open the Demo account and let if run... go live your life check on whenever you have time..

You will see that the basket of 10 will go Loss Profit Loss... you can Take the profit and stop trading OR


Pitbull orders the pairs from Highest loss to Highest Profit or Lowest Loss
you can Trade the bottom pair if you like the Highest profit but stable. it has to be stable...

Profit is Profit Take as the Market gives it to you..remember you R:R..

Hope this removes the confusion...

Most times its not the teacher that creates the confusion...The student should always be willing to solve problems and make mistakes and learn from the mistakes and try not to make them again.

Look its not a perfect world..so if mistakes happens lets move on ...and create new ideas of reducing the DD.
  • #48
  • Jan 4, 2012 1:21pm Jan 4, 2012 1:21pm
what is the basis of selecting which pairs to buy and which pairs to sell. How do you handle changes in the trend of the selected pairs ?
  • #49
  • Jan 4, 2012 1:52pm Jan 4, 2012 1:52pm
rvenky,

It has to do with how all 10 currencies are correllated. The setup is so all 10 currencies will hedge each other so the basket will not fly off for the most part in one single direction. If you look at the following link you can enter all 10 currencies and see the correllations.

http://www.forexticket.co.uk/en/tools/01-01-correlation

If I am wrong, please somebody correct me.


Quoting rvenky
what is the basis of selecting which pairs to buy and which pairs to sell. How do you handle changes in the trend of the selected pairs ?
  • #50
  • Jan 4, 2012 3:25pm Jan 4, 2012 3:25pm
Today I bought 1 full lot of the AUDUSD rollover interest, it happens over and over. BANKS, FUNDS, RETAIL everyone likes to hold assets that pays High interest.

Pitbull Auto Sync the Market and shows where the money is on the bottom line.

My DD is +VE, so like every business ..I will sit and decide if i should continue invest in goods using more of other ppls money.

If the conditions are correct and in my favor I would increase the DD.
However, I have to take it back to an acceptable level, so I can buy more goods for sales.

How to do it?

Ratio: More BUYS TO SELLS or vice versa with the Trend

Another Idea of Running up the DD and Bringing it BACK.
THE RUBBER BAND EFFECT.

Cheers, THANKS B
  • #51
  • Jan 4, 2012 4:07pm Jan 4, 2012 4:07pm
see bottom lines, timinig is import my broker doesnt pay swap interest on demo it seems like..oh well

but the concept is close trade or BE at 5:01 PM EST to credited with the interest extra ..cash
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  • #52
  • Jan 4, 2012 6:21pm Jan 4, 2012 6:21pm
Great thread chips

Question about BE positions... when do you know when to do this?
  • #53
  • Jan 4, 2012 6:23pm Jan 4, 2012 6:23pm
Quoting chips
see bottom lines, timinig is import my broker doesnt pay swap interest on demo it seems like..oh well

but the concept is close trade or BE at 5:01 PM EST to credited with the interest extra ..cash
Have a look on your brokers website or talk directly to them about the triple rollover times
  • #54
  • Jan 4, 2012 6:56pm Jan 4, 2012 6:56pm
Hi Guys
Great to see that this system is still alive and well. Thanks and kudos to Chips for starting a new thread.
I found this system very interesting when it was first introduced to us by the Master on Nov 9th 2011, taking $5000 demo to $8500 in one week. (14 Nov - 18 Nov) I may have been lucky. (PDF orig post 605, see link below)
Now that the Holidays are nearly over I will start trading again once liquidity returns.
For those who may have missed it here is the post from 'Dreamliner', who was kind enough to condense the trading rules in the original Pitbull thread http://www.forexfactory.com/showthread.php?t=324836. It is now in the recycle bin.
Read it while you can, it contains some good information.

DREAMLINER:
Step 1: Enter the following five buys and five sells into your MT4 platform:
Buys:
AUD/USD
NZD/USD
EUR/GBP
EUR/USD
GBP/USD
Sells:
USD/JPY
NZD/JPY
EUR/JPY
GBP/JPY
AUD/JPY
The above ten trades are your “indicator dashboard” or your “indicator trades.”
Step 2: Click on the “Profit” column so that the highest loss is on the top and the lowest loss (or greatest profit) is on the bottom.
Step 3: A few hours after you have put the above 5 buys and 5 sells on, you should see a profit (or very small loss) on the bottom line. This is the first currency pair you are going to trade.
The way that you trade this bottom line currency pair is to check to make sure the bottom line currency pair is stable in profit. In other words, that currency pair may alternate between negative and positive for a while, but once it remains positive then
A) close that trade (take the profit) and
B) enter an order that is a little bigger than your previous "indicator trade" on the same pair that you just took profit on.
C) The bottom line tells you which direction to enter the currency pair on the bottom. Simply go in the direction of the bottom line currency pair. If it is a buy (such as AUD/USD or any of the other four buys) then you enter your first order long. If it is a sell (such as USD/JPY or any of the other four sells) then you enter your first order short. This order is for .04 lots.

 Here is an example: let's say a few hours after active trading your “indicator trades” are showing AUD/USD on the bottom line, and that currency pair is showing a small profit, and remaining profitable. You would then simply enter your first order as a buy on AUD/USD, and use a bigger lot size than your “indicator trades.” If you use .01 lots on your ten “indicator trades” then use .04 lots on your first real trade (long AUD/USD).
Step 4: Continue this process over and over; waiting until the bottom pair is in consistent profit, then close that trade (take the profit) and re-enter. As you take profit on your first size of .01, you re-enter at .04. As you take profit on your .04 size lot, you drop back down to .01
Step 5: Manage drawdown. This is a work in progress, but an excellent place to start is this video from Brijon: http://www.forexfactory.com/showthre...506#post512850 6 (http://www.forexfactory.com/showthre...506#post512850 6).
General notes: You only take trades that are exhibiting profitability, that is, position 10 (the bottom position) on the Pit Bull indicator. Once the trade is opened, it can immediately climb out of the bottom three positions and show a loss. If it then it falls back into the bottom three positions (8, 9 or 10) look for stable profitability (say 20 seconds), then take profit.

If the trade does not go to profit, manage the drawdown. Only take profits if drawdown is acceptable, profitable trades will "hedge" drawdown and (3) continue to take profits when drawdown returns to an acceptable level.

I would draw your attention to point #4 as I find this keeps the indicator up to date.
There are many ways to trade, so whatever works for you.

Follow the videos on youtube and practice, practice and practice some more,
..................... and all will be revealed.
  • #55
  • Jan 4, 2012 8:25pm Jan 4, 2012 8:25pm
Can you recommend other brijon videos that are helpful? There are many and some aren't entirely clear. Any suggestions?
  • #56
  • Jan 4, 2012 9:40pm Jan 4, 2012 9:40pm
If the following pairs are opened on the account, and you are also trading on the same account, what will happen if the Bank of Japan interferes again? There will be a great disruption in the total hedge and account performance??

Buys:
AUD/USD
NZD/USD
EUR/GBP
EUR/USD
GBP/USD
Sells:
USD/JPY
NZD/JPY
EUR/JPY
GBP/JPY
AUD/JPY


Thank you

  • #57
  • Jan 4, 2012 9:52pm Jan 4, 2012 9:52pm
I can't speak for others but I would have a EA that controls your account in the case of an intervention. I would use Steve Hopwood's mptm EA. Basket or hedges can be set on that EA for your account if it hits a certain drawdown or dollar amount.


Quoting Gothamcity
If the following pairs are opened on the account, and you are also trading on the same account, what will happen if the Bank of Japan interferes again? There will be a great disruption in the total hedge and account performance??

Buys:
AUD/USD
NZD/USD
EUR/GBP
EUR/USD
GBP/USD
Sells:
USD/JPY
NZD/JPY
EUR/JPY
GBP/JPY
AUD/JPY...
  • #58
  • Jan 4, 2012 10:15pm Jan 4, 2012 10:15pm
Quoting Gothamcity
If the following pairs are opened on the account, and you are also trading on the same account, what will happen if the Bank of Japan interferes again? There will be a great disruption in the total hedge and account performance??

Buys:
AUD/USD
NZD/USD
EUR/GBP
EUR/USD
GBP/USD
Sells:
USD/JPY
NZD/JPY
EUR/JPY
GBP/JPY
AUD/JPY...
Trading is a risky business DO NOT investment more in the market than you are willing to loose.
People tend to get greedy and increase lot size this is only increasing the work load and stress.

I KNOW I have blown the live account even and Demos, even though J16 says prove you are profitable for 3 months before invest real money in the market. I though I had under control

We cant predict these things but if it happens you can trade your way back remember you only accept a loss if close out neg positions or you did budget for and sudden intervention and end up margin call.
May other currencies in the basket will follow over time,but can you account manage it because on the risk you took?
DONT risk more than you are willing to loose. Plan your business operations and calculate the risk.

Brijon says this everytime and some ppl ask the same questions..but greed know no bounds
Thats all I can say
  • #59
  • Jan 4, 2012 10:21pm Jan 4, 2012 10:21pm
Quoting Presence
Can you recommend other brijon videos that are helpful? There are many and some aren't entirely clear. Any suggestions?
No I cant..its all there on his tube...just clear your mind when watching his videos...

I watched them over and over..they are free..

Even now some stuff i dont get..like the limit orders and the square of 100 and some other exploits...

real good stuff for DD management
  • #60
  • Jan 4, 2012 10:57pm Jan 4, 2012 10:57pm
why is it being called the Pit Bull indicator when its just a buy sell scrip?

What am i missing?

Still a bit confused on managing the DD but its starting to make sense.
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