Pitbull Trader with Position Building | Page 20 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

EA open position on demo, but not open position on real account. Any Comment 7 replies

Close Losing Position, Set Trailing Stop to Winning Position 2 replies

Extreme long term Hedged Carry Trade Position Building journal 15 replies

What is "Building a Position" 4 replies

Long position or short position 6 replies

Attachments: Pitbull Trader with Position Building
Exit Attachments

Pitbull Trader with Position Building

  • #381
  • Jan 14, 2012 1:52pm Jan 14, 2012 1:52pm
Would anybody be interested in setting up a Skype group to practice the pitbull method?...
We could all set up a basket at Frankfurt opening ( as Courtney does ) and then go onto Skype an hour or so later after London open .
It seems that there are more than enough people are interested in the thread and method.
I reckon it would be hugely beneficial if we could practise in a group.

What do people think?

T
  • #382
  • Edited 3:21pm Jan 14, 2012 2:17pm | Edited 3:21pm
Quoting longhornxtreme
Chips:

Thanks for you time on this post. While I don't understand all of it, you are a much better writer than Brijon and you don't seem to be trying to start a 3rd party trading group.

Question:

If USD/JPY goes on a long rally, how does the basket still cycle from profit to loss to profit to loss?

I've stuck the basket on forex tester and watched the DD fluctuate many times at different time periods; but, all the basket really is is a directional trade on USD/JPY.

Question:

Can you give us a trade by trade for one of your sessions?...
Stop trading ?

This is stop adding positions to the basket..in hedge and DD.

allowing -ve positions to move into +ve slots...once this happens the DD will be reduce..then you can take profit....from the two profitable positions.

reducing the exposure and reducing the dd.

you have to do it to see it happen..

theoretically its hard to get by ppl who have BIASES about other trading principles.

I can take you through the method..but you have to do for your yourself.

focus on the last bottom pair until you get fully understanding, taking a minimum of 15 pips..iin profit.
  • #383
  • Jan 14, 2012 2:19pm Jan 14, 2012 2:19pm
Seems our friend Nubcake did some coding not too long ago. Hey Nubcake, can you share your nbEA_SimTrading2_revision_6 indicator with me? How about the mtf candle indicator? Think it may come in handy with vhands. Very different posts from you back then. Fairly cordial I'd say. Someone pee in your forex Wheaties since then? Let me know about the indicators, cant wait to try them out.
  • #384
  • Edited 2:45pm Jan 14, 2012 2:27pm | Edited 2:45pm
The method is not a conventional way of trading the forex..most ppl will dismiss it..without
attempting..and even when they attempt it...they will get greedy and add larger postions to the trade...because it is so easy to Take profit..they will get cocky and get greedy without fully understanding the concept..then they will come back and say it doesn't work..Be patient.undertstand the we are just controlling loosing trades while we increase account bal..we will get the opportunity to reset all all the loosing pairs...during the Tripple SWAP runup...I've showed it twice...you can hold your position for added interest payments.

Set your DD limit to 15% OF ACCOUNT BAL : this is the total amount you are willing to risk

.1. liquidation of all positions when BASKET is profitable( positive )

2. Reducing Position or Exposure
a. Higher +ve Cancels Lower –ve

3. Stop Trading and wait for Trend to resume ( VOLATILE Period), this will cycle your positions... Loss - Profit - Loss
when -ve positions moves in +ve postions..you can take profit on then new +ve postions and another +ve..thus reducing the DD and increasing the bal and equity.

This part takes patience..you have to see it to believe....Trade...positions that you account can handle

4. Ratio: of SELLS TO BUYS in the direction of the Trend
Trend : Grouping of Currency determines the Trend direction
More SELL positions Together ..go short
More BUY Positions Together... go long

5. Trade according to account size. DO NOT OVERSTOCK or get greedy

6. TAKE profits
Min 15 pips

7. Hedge the BIGGEST looser, this will freeze the loss while Winners gains

8. BUY AND Hold for + VE SWAP payments ( rolleover or carry trade Technique)
AUDUSD,

9. Trade on the FASTEST moving PAIR.

10. Breakeven Positions for long-term growth or reducing risk

Think about the list with respect the to basket....ppl keep asking about how to control the DD....

We are generating revenue, while controlling the loosers...

you cannot stop losses in forex..but you can control those losses...while generating sales.....eventually you can reset the basket during the RUNUP to TRippple SWAP..it's almost a given in the forex....

Big money follow high interest payments.....
  • #385
  • Jan 14, 2012 3:02pm Jan 14, 2012 3:02pm
Now that I have included the 'bozzo's' on my ignore list I shall add my 2 cents worth for what it is worth. I started reading about Brijon's methods about 14 months ago and before that T101's.

Like trade4fun and I am sure many others, I struggled to fully grasp his methods due to his unusual style of writing. However there were a couple of things that really 'struck a chord' with me, treating forex as a 'business' and the 'profit to loss to profit' cycle (the haters will have a field day with me for saying that). I have run my own businesses for 25 years so the business angle made sense to me at least.

I trade different pairs to the 'pitbull' method discussed here but the 'principles' are similar. I trade 3 pairs only and though I do scalp profits occasionaly, most of my positions are open for several days and occasionally weeks.

'Profit to Loss to Profit' the quote that the 'haters' find so hard to comprehend, I have been trading this way for 14 months and so far this has always stood 'true'. Surely what goes up must come down, currencies are cyclical by nature are they not? Yes if you are trading one pair in one direction, get it wrong and sooner or later you will blow your bank period. However by carefully hedging your positions both ways and sometimes, with a lot of patience I have found that you can eventually 'close all' for a new 'balance high'.

I opened my first 'demo' account in November 2010 and by trading .01 lots and compounding my profits by increasing my lot size by 0.01 every time I doubled the account size. By September 2011 I had grown an initial £500 starting balance to £4,500. Luck maybe, but every single time the account went from 'profit to loss and back to profit once again before finally 'closing all' for a new balance high.

I never ever use 'stop losses', hedging my positions along the way is my 'stop' untill the 'natural cycle' returns. My honest opinion is that 'stop losses' are one of the main reasons why most people loose there money.

I am always trading the same pairs 'both ways', don't care if the price is going 'up' or 'down' makes no difference. Pretty much the same principles as described in this thread, I add to positions as and when and take profit along the way increasining my balance gradually untill the time comes when the whole 'balance' of the basket has shifted creating a new 'overall balance high' I then 'close all' (winners and loosers) and start again!

As has been said before this way of trading is not for everybody, if you are looking for a precise set of rules then this will not be for you. However if you are prepared to practice, practice and practice some more then it is possible to find 'your own' way to be profitable using these principles.

After successfully trading this way for the past 14 months (demo) I have now opened a 'live account' depositing £500. Money I am prepared to loose so will sleep easy at night. I have my 'plan' am 'comfortable' with what I am doing, so just need to replicate what has worked before. I may well fall flat on my face as 'the haters' would wish but if I can do half as well by this time next year then you know who will be the 'first' to know.

Apologies for the long post but just wanted to share my experience of trading this way.

Kind regards
  • #386
  • Jan 14, 2012 3:28pm Jan 14, 2012 3:28pm
Quoting wingate
Now that I have included the 'bozzo's' on my ignore list I shall add my 2 cents worth for what it is worth. I started reading about Brijon's methods about 14 months ago and before that T101's.

Like trade4fun and I am sure many others, I struggled to fully grasp his methods due to his unusual style of writing. However there were a couple of things that really 'struck a chord' with me, treating forex as a 'business' and the 'profit to loss to profit' cycle (the haters will have a field day with me for saying that). I have run my own businesses...
Peace out...
There is no wrong or right way..its just your way...
But 95% of Trading in controlling the DD.and not giving your capital to the broker using stop loss...There is no Stop Losses in business..if you want you business to go on....That's the principle we are using to trade the forex, in todays market..think about it
  • #387
  • Jan 14, 2012 3:28pm Jan 14, 2012 3:28pm
Forgot to mention drawdown. As 'Chips' has said on numerous occasions, Don't over trade, when your drawdown gets to around 15% STOP TRADING! This is the hard part wait patiently until the trend reverses and the drawdown starts to decrease then start to take the profit SLOWLY.

I have found that eventually when the momentum picks up the drawdown decreases to a point that you can then close all positions (winners and the loosers) for a NEW BALANCE HIGH.

Remember PATIENCE, PATIENCE, PATIENCE...PRACTICE, PRACTICE, PRACTICE...

Regards.
  • #388
  • Jan 14, 2012 3:31pm Jan 14, 2012 3:31pm
Chips, totally agree that's what I said, I NEVER use stop losses that's what the brokers want the punter to do!

Regards.
  • #389
  • Jan 14, 2012 3:34pm Jan 14, 2012 3:34pm
Quoting tommbstone
I'll do some lottery tickets. LOL
I love your pictures of the dead horse. so funny I got one for ya blueballs..



Good one Man !
Brought a smile to my face.


Cheers

Bluesteele

PS
Quit peeking in me shorts...
Master your Mind,,,Master the Market
  • #390
  • Jan 14, 2012 3:42pm Jan 14, 2012 3:42pm
Quoting chips
Peace out...
There is no wrong or right way..its just your way...
But 95% of Trading in controlling the DD.and not giving your capital to the broker using stop loss...There is no Stop Losses in business..if you want you business to go on....That's the principle we are using to trade the forex, in todays market..think about it

This has to be one of the stupidest statements yet...

Just calling a spade a spade.

"there is no stop losses in business"..

Wake up sheeple....Don't you have any warning bells going off in the back of your heads?

I cant' wait for CHips to start up a skype group...like his twin.


BLueballsteele
Master your Mind,,,Master the Market
  • #391
  • Jan 14, 2012 3:58pm Jan 14, 2012 3:58pm
Quoting oconnor365
Would anybody be interested in setting up a Skype group to practice the pitbull method?...
We could all set up a basket at Frankfurt opening ( as Courtney does ) and then go onto Skype an hour or so later after London open .
It seems that there are more than enough people are interested in the thread and method.
I reckon it would be hugely beneficial if we could practise in a group.

What do people think?

T
I'd be interested for sure. Let me know if you guys start one.
  • #392
  • Jan 14, 2012 5:27pm Jan 14, 2012 5:27pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting wingate
I started reading about Brijon's methods about 14 months ago and before that T101's.

I trade different pairs to the 'pitbull' method discussed here but the 'principles' are similar. I trade 3 pairs only and though I do scalp profits occasionaly, most of my positions are open for several days and occasionally weeks.
Hi wingate - great post - i expect your trdaing different pairs because you picked up on the correct way to build the basket from T101, keep on plugging away and best of pips on the live account.

About the Uj situation

I've said it before and i'll repeat it here.

Pitbulls basket is not correctly balanced, since brijon assembled these pairs the market has been short (all down hill since 2008) the short pairs being JPY based will always cycle back into profit whilst this remains the case.

however once we turn the corner and a long run up begins the problem for many here will begin Jpy pairs generally have wider spreads and move faster - the 5 buys USd based will not keep up - this is the only fault in this method and will not be seen or understood until later - then the BS I told you this would fail will return.

there are 2 options here - run the basket in demo always, DD on the baskets is then irelevant or optimise the basket correctly

The trading method remains the same but the basket DD is no longer an issue

stick to it - this is heading in the right direction
  • #393
  • Jan 14, 2012 5:58pm Jan 14, 2012 5:58pm
Quoting bluesteele
This has to be one of the stupidest statements yet...

Just calling a spade a spade.

"there is no stop losses in business"..

Wake up sheeple....Don't you have any warning bells going off in the back of your heads?

I cant' wait for CHips to start up a skype group...like his twin.


BLueballsteele

Plenty of threads on this site don't make money, in fact most, however is it the pitbull method you don't like or is it Brian?

Or both?

Rumour is that you and the comedy club already trade the Pitbull, perhaps you are trying to keep it quiet

Just a whisper circulating elsewhere...
  • #394
  • Jan 14, 2012 6:06pm Jan 14, 2012 6:06pm
Quoting bluesteele
This has to be one of the stupidest statements yet...

Just calling a spade a spade.

"there is no stop losses in business"..

Wake up sheeple....Don't you have any warning bells going off in the back of your heads?

I cant' wait for CHips to start up a skype group...like his twin.


BLueballsteele
Some traders have a mental state where if trades go bad..they just exit...that's part of knowing your limit and controlling the DD
he didnt..enter a SL...he is managing his account how he knows..controlling it and not placing stops and give away free money.

But that's not our way..we are using the market cycle..and patience to grow the account and profit

i wouldnt mind if you share some of your experiences since you continue to express your opinion here.

I not looking to start a any group for that matter...I'm just here to post my thoughts about my experiences trading like a business...steadily growing the account.

I can't help anyone with a skype group...they have to experience the cycle themselves...

Everyone has to find there own way of controlling DD and managing the account.

What more do you want..I have showed how to reset..the entire basket with a net profit...

I HAVE SHOWED trades that went bad..how to control them

I HAVE showed the market does cycle from loss profit loss..

I have showed Tripple swap runup..on high interest currency.

I have showed hedging and position reduction

Now it's your time to show up how to controll the DD

I do have one more technique that everyone will love...but I'm SAVING IT until everyone get a chance to do the inital trading...with the bottom currency...using proper postion size..

Now this technique will always...keep your account ..in +ve DD... I sure ppl will love to hear how...

You can Trade for interest only in the forex.....if you have large sums...
just collect SWAP...and your are making...more than 4% every wednesday..

now thats not so bad. But we are operating a business.

It's a new way of trading the forex.
  • #395
  • Jan 14, 2012 6:36pm Jan 14, 2012 6:36pm
Why not set the basket up on a demo account. Wait 1 hour, then trade the stongest pair in the trend direction and sell the weakest pair. From what I can see you are setting these trades to show you whats going on, once the market starts to assume a direction you get heavier weighted in the direction of the faster movers. This in essence is what give you the edge. You are trading the daily trend, and you expect the trend to continue.

In effect your .4 position multiplys up at 4X your .1, so sell weakness and buy strength. Or you could look at the charts and decide, I think this is a nice easy way to do it, just my thoughts. The hedge protects you in that you don't lose if the market flies in one direction, because its ineffect being balanced by the other positions, then you see what's moving and pile in to the stongest movers. I will try this on Monday and this week and report.

Kind regards all
  • #396
  • Jan 14, 2012 6:36pm Jan 14, 2012 6:36pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
just wanted to follow on about the Usdjpy thing

if we had opened the pitball basket on 1 july 2008 - this is where we'd be

4206.75NU
735.90AU
-742.20EG
-3076.60Eu
-4621.10GU

3780.94Uj
2538.59Nj
9031.49Ej
12153.20Gj
2879.80Aj

26886.77

+26000 pips in profit - so what happens if the market was long???

if this was -ve it is going to be a very long time before this cycles back into profit i think

fortunately pitball requires the basket to be opened daily - so these numbers should never been seen - but the business model will get harder to work.

trading methods remain the same - but i'd have a good think about the basket.
  • #397
  • Jan 14, 2012 7:27pm Jan 14, 2012 7:27pm
Guys,

The basket is only an indicator, you should open a new one every day at the same hour off the day, wait some time, see which pair is the stronger one and jump in its direction.

Use the basket in one account and trade another.

Sorry fo rmy bad english.

Suba
  • #398
  • Jan 15, 2012 8:44am Jan 15, 2012 8:44am
Hello Chips,

Many THANKS for your very valuable contribution on this thread.

My questions concern :


1) Did you always close the 0.01 trades when you decide to open 0.04 trades or did you keep the 0.01 trades open as an INDICATOR base that you close ONLY when you close ALL your basket ?

2) If you decided to hedge your BIGGEST loss, do you hedge with same lots size or bigger lots size ?

3) As you take profit on your first size of .01, you re-enter at .04. As you take profit on your .04 size lot, do you drop back down to .01 or do you re-re-enter at .04 and so on ?

4) Do you always open your basket with the same lot size at 0.01 or does it depend on your wallet size ?

5) With a $10000 account, do you open your basket at .01 lot size or .1 lot size in order to use "the rubber band" effect ? In fact does it depend on your starting balance or whatever the size of your balance is, do you always open your basket at .01 lot size ?


Thanks for your attention,

God bless you,

Angel
  • #399
  • Jan 15, 2012 7:01pm Jan 15, 2012 7:01pm
Quoting Mike Haran
Why not set the basket up on a demo account. Wait 1 hour, then trade the stongest pair in the trend direction and sell the weakest pair. From what I can see you are setting these trades to show you whats going on, once the market starts to assume a direction you get heavier weighted in the direction of the faster movers. This in essence is what give you the edge. You are trading the daily trend, and you expect the trend to continue.

In effect your .4 position multiplys up at 4X your .1, so sell weakness and buy strength....
Brilliant suggestion, wonder why they didn't think of that before?

Why not give it a whirl and report back to us, say Friday?

Thanks

It takes a lot for me to IGNORE you, but you can try.
  • #400
  • Jan 15, 2012 7:35pm Jan 15, 2012 7:35pm
I got a few positions in during my travels last week.

This is the results...
Use your own method of confirmation if you want..run the pairs on a demo if you like..there's no wrong or right way to trade..just find your own way.
If you find it's too risky having the pairs on a your account...
Demo you ideas..I just showing you guys what's working.

With these positions I enter inthe directionof the weekly...I will manage these to BE. while taking quick trades this week when I can
Attached Image (click to enlarge)
Click to Enlarge Name: pitbuljan15week-1.png Size: 234 KB
0 traders viewing now