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  • #421
  • Jan 16, 2012 6:59pm Jan 16, 2012 6:59pm
MPP, thanks for your work but as stated several times here and the other related threads - the basket is used as an indicator only. Most of us close all open positions once the respective profit goal is achieved... This is not a basket trading system as outlined by T101 for example though it has certain similarities.

Given your number of posts and vouchers this is definitely nothing new to you - currencies appreciation / depreciation against each other fluctuate constantly. There are numerous implementations of currency strength meters here and on other sites but I yet have to find one that is as precise in terms of selecting one specific currency pair as this system.

I liken this to a speed gauge - jump on the fast train for a while (the fastest moving pairs), make some pips, close everything, rinse & repeat the next day.

Just my 2cents - I suggest to everybody (again) - put this on demo for a month & share your results...

Cheers
  • #422
  • Jan 16, 2012 7:03pm Jan 16, 2012 7:03pm
Quoting chips
Since no one really knows where the market is going..may I suggest that you always start with lower lot sizes and increase your lot size once you see a clear trend. That way you have Trend working with you and you are capitalizing on the market move.

think about it.
Chip, it has nothing to do with trend. You will catch the trend either way. Its about position sizing the basket. The secondary add-on trades should be smaller or at the very least, same size. Think of it like a pyramid. adding larger lots from the base makes an upside down pyramid, no stability. I think my math example from previous post showed that.

Im not here to trash your system ok. I think it has some potential if worked correctly. I have traded something very much like this (phantom6 and basket 14) plus some others, so Im not new to basket trading.

One more idea for you to think about..Since you are the thread master, how about linking your demo account to myfxbook or mt4i.com. Its pretty easy to set up and then everyone can follow the trades you make and see exactly how the account progresses over time. I use mt4i myself and it provides a nice set of stats about your account. And its free.
  • #423
  • Jan 16, 2012 7:17pm Jan 16, 2012 7:17pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting mobthehop
MPP, thanks for your work but as stated several times here and the other related threads - the basket is used as an indicator only. Most of us close all open positions once the respective profit goal is achieved... This is not a basket trading system as outlined by T101 for example though it has certain similarities.

Given your number of posts and vouchers this is definitely nothing new to you - currencies appreciation / depreciation against each other fluctuate constantly. There are numerous implementations of currency strength meters...
the main point of the posts is to show that a correctly balanced basket needs less managment than the current selection and that by changing just a few things slightly, we don't have any effect on the method of trading and can reduce the headaches that will be upon this method when the market turns long.

as i said before it's not such an issue in pitbull as the baskets are closed each day - so there is every chance that it will cycle.

but at least this way people can't come back later and say - we failed, because hopefully now the weakness is shown and the solution provided, if it does become an issue - we simply adjust the basket accordingly and the problem is resolved.

i'm still unsure why it's not just run in a demo or excel doc - i have no costs associated with reviewing the market and no costs associated with looking after the basket - only my trades to deal with.

pitbull is still growing and only time will share it's true potential.
  • #424
  • Jan 16, 2012 7:36pm Jan 16, 2012 7:36pm
MPP, apologies if I jumped the gun a bit....

1. As I still do not understand most of Brian's advanced methods, I started off with reading the whole T101 thread and am presently half-way through his "Roll-Over" thread (unfortunately now residing in the recycling bin of FF)

2. I am fairly certain that some of the excel implementations in the Roll-Over thread can be adapted to PitBull Trader, alas, not by me.. Can't code if my life depends on it - lol

3. There are however a number of dashboard like indicators / EA's that were already adapted to Pitbull "indicator" (I shy away from using basket), I posted one in #252 and there are two others in # 263

4. Out of curiosity, would you consider the T101 basket fully hedged?
  • #425
  • Jan 16, 2012 8:08pm Jan 16, 2012 8:08pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting mobthehop

1. As I still do not understand most of Brian's advanced methods, I started off with reading the whole T101 thread and am presently half-way through his "Roll-Over" thread (unfortunately now residing in the recycling bin of FF)

4. Out of curiosity, would you consider the T101 basket fully hedged?
no appoligies required - it's mearly a discussion.

thats a lot of reading - good luck - but worth it

No T101's basket is not fully hedged, but is almost. to fully hedge a basket correctly you need to vary lot sizes and this is extremely difficult to maintain. and for the sake of a few pips not worth the trouble, plus you need to move the baskets up to 0.1lot sizes and the swap becomes the bigger cost.
  • #426
  • Jan 16, 2012 8:55pm Jan 16, 2012 8:55pm
I am starting to like the drawdown management. I started 5 randon buy and 5 random sell on selected pair and still it is maintaining DD.

Here are my trades i started yesterday. Just want to clarify something

http://i.imgur.com/K98DI.png

According to rules I should close EGBP position and open a EJ long trade with 0.04 lot right?
  • #427
  • Jan 16, 2012 10:06pm Jan 16, 2012 10:06pm
Quoting darksorrow
I am starting to like the drawdown management. I started 5 randon buy and 5 random sell on selected pair and still it is maintaining DD.

Here are my trades i started yesterday. Just want to clarify something

http://i.imgur.com/K98DI.png

According to rules I should close EGBP position and open a EJ long trade with 0.04 lot right?
I see you have some CHF in the mix. But it doesnt matter..really jsut trade the bottom currency. highest in profit.

You will see why ppl should put more focus on DD management because ...taking profit will be all too easy...Our method here is controlling the DD using business principles.

Most ppl will what coming next. Just practice the DD management controlling the DD. Think a practice.
  • #428
  • Jan 16, 2012 10:16pm Jan 16, 2012 10:16pm
Everyone here should focus on DD management. Because taking profit is easy, we can loose it all because of greed and adding to much trades, not exercising patience.

Just observe what happens when you take profit. the DD increases, right.

Now ppl are concern about balancing pairs, short market and long market.
Really it doesn't matter and everyone will see in the near future.

When I show the method of applying the Techniques to the scale for larger time frame and actually building positions, Using DD management and Taking profit on a larger scale.

The advantage of this is more free time spent from the screen and having time plan for better DD control management and larger profit from less trades becaause of the scale we are applying the techniques to.

Remember the topic is Pitbul with Position building.
I haven't touch on building positions as yet, and some ppl tried to hijack the thread.

This will be the best part of Trading method.

See in the past we would have to scan the charts to find out which pair is good to trade based on candle , confluence etc.

Now its in the pitbul screen. it's telling which pair we can add positions to Now.

So practice the business on DD management on shorter scale and we will apply it to the larger scale.

I have instructions coming up. The Forex never ends, so we will follow and participate in it controlling DD and Taking profits as it goes.
Using the Pitbull indi. + Some charts and DD Management Techniques
  • #429
  • Jan 16, 2012 10:25pm Jan 16, 2012 10:25pm
Quoting chips
I have instructions coming up. The Forex never ends, so we will follow and participate in it controlling DD and Taking profits as it goes.
A NEVEREND method.

I am also trying to find out something like this but still at the ground. Would be nice if i get some idea from you.
  • #430
  • Edited 11:28pm Jan 16, 2012 10:32pm | Edited 11:28pm
I made mistakes again, but I'm not worried because my positions seems correct, I froze some trades, while the profit grow lets see how they develop.
This could be a turn around week, notice all the BUYS.

Listen guys, I could be adding few more position than you but that's basically because I'm looking for my positions to grow with the weekly at this point, so I take a look at the charts. I'm not looking for candles or mas, I looking a where price is now compare to last week Close.

Understand the concept, it is the DD control we are concentrating on, its the princple of taking profit and control the Loss while following the market, operating the business generating revenue, reducing expenses and adding new products. Its the cycle of the market that allows us to do this.

We will be moving to Position building, using larger Scale ( generating larger sales) using the DD management.
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  • #431
  • Jan 16, 2012 10:44pm Jan 16, 2012 10:44pm
Quoting darksorrow
A NEVEREND method.

I am also trying to find out something like this but still at the ground. Would be nice if i get some idea from you.
Only DD control will allow anyone to Take profit from the market and grow the account at the same time.

We participate while controlling to DD. But you have to do it to see it happen. Larger time frame take more patience, but the profit is greater with less trades and less screen time.
  • #432
  • Jan 17, 2012 12:27am Jan 17, 2012 12:27am
Quoting chips
Everyone here should focus on DD management. Because taking profit is easy, we can loose it all because of greed and adding to much trades, not exercising patience.

Just observe what happens when you take profit. the DD increases, right.

Now ppl are concern about balancing pairs, short market and long market.
Really it doesn't matter and everyone will see in the near future.

When I show the method of applying the Techniques to the scale for larger time frame and actually building positions, Using DD management and Taking profit...
Chips

Thanks you for all your work and leading the way. I'm looking forward to what's you have planned for coming next. Hopefully I'm not a highjacker.
This method has been a revelation to me and I'm glad I waded through BJs valuable information and ended up here with you.

Still learning and at 51.38% up on equity since the 3rd of jan very happy.

CW.
  • #433
  • Jan 17, 2012 2:40am Jan 17, 2012 2:40am
I started this on demo yesterday. Here is my screenshot. Good pippin!
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  • #434
  • Jan 17, 2012 2:48am Jan 17, 2012 2:48am
hi Courtney..any chance of displaying your trades for yesterday ?...I actually find your trades much easier to figure out..

T
  • #435
  • Jan 17, 2012 6:41am Jan 17, 2012 6:41am
Hi all, I think I finally have something to contribute to this thread. I understood the concept very well but since we U.S. residents cannot hedge, I found it more difficult to manage DD than those with the capability to place hedge bets. So here is my thought process and my attempt to control DD.

Using a business as reference as Chips does I thought about it very carefully. A business would maybe close for the night, but would not restock the entire inventory every single day. I mean a business would open, make the transactions, and then near the end of the day would not have a fire sale on every single item that didn't sell, would it? Wouldn't a business take inventory and see what products didn't sell very well? It wouldn't make sense to put out the same exact merchandise day in and day out if it doesn't make a profit. So it led me to think that all we need to do is replace our bad inventory with inventory at a better price.

For example. We open our basket trades and pretty soon we have pairs in profit and in DD. Once we get a pair in profit we open a bigger position in that same pair. We then wait until that bigger position goes into profit as well. When that bigger position is the equivalent or greater to the biggest DD pair, we then close out both the bigger position and the biggest DD pair. Then we immediately open a new position in the pair that was the biggest DD. We leave the original highest profit pair in place. Think about what this does. It allows you to get rid of the biggest loser and replace the entry at a level where it will have a better balance on your basket.

So here's a visual. EU profit 20 points at 0.01. EJ DD 20 points at 0.01. Open EU buy for 0.04. EU 0.04 goes into profit 10 or so points. Close both EU 0.04 and EJ 0.01 at -30 or so points in DD. Re-enter EJ short at 0.01.

If I'm missing something I hope someone will let me know. Its been working for me and like I said this is for U.S. residents that cannot hedge.
Attached Image(s) (click to enlarge)
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  • #436
  • Jan 17, 2012 7:12am Jan 17, 2012 7:12am
Quoting TheDirtySerb
Hi all, I think I finally have something to contribute to this thread. I understood the concept very well but since we U.S. residents cannot hedge, I found it more difficult to manage DD than those with the capability to place hedge bets. So here is my thought process and my attempt to control DD.

Using a business as reference as Chips does I thought about it very carefully. A business would maybe close for the night, but would not restock the entire inventory every single day. I mean a business would open, make the transactions, and then near...
Excellent explanation. It cleared many of my confusions.

+1
  • #437
  • Jan 17, 2012 7:59am Jan 17, 2012 7:59am
Ok Chips - give us the next dose! We're ready
  • #438
  • Jan 17, 2012 8:37am Jan 17, 2012 8:37am
Quoting TheDirtySerb
Hi all, I think I finally have something to contribute to this thread. I understood the concept very well but since we U.S. residents cannot hedge, I found it more difficult to manage DD than those with the capability to place hedge bets. So here is my thought process and my attempt to control DD.

Using a business as reference as Chips does I thought about it very carefully. A business would maybe close for the night, but would not restock the entire inventory every single day. I mean a business would open, make the transactions, and then near...

Ok, but what do you do if the new bigger lot immediately goes into DD?
  • #439
  • Jan 17, 2012 9:21am Jan 17, 2012 9:21am
Quoting PiptheRipper
Ok, but what do you do if the new bigger lot immediately goes into DD?
Yeah I hear ya. Thats the one thing I'm still working on. The way I've been handling that is that if the bigger position automatically goes down 10 to 15 points I close it out. I've only had to do that one time though and its been fine. Will let you know if it keeps happening and then its back to the drawing board. However, entering the bigger position should not be done when the market is slow or thin as you have a greater chance of the pair chopping around. So the bigger lot trades I've been entering is usually during London (3-6 c.s.t) or New York (8-11 c.s.t). Maybe thats why they've worked out for me almost every time. Still, its work in progress.
  • #440
  • Jan 17, 2012 10:30am Jan 17, 2012 10:30am
Just did it again. Closed bigger GU position and original GJ position that was in DD. Took something like a 1 pip loss overall, but if you look at my balance and equity as previously posted and compare it to what it is now, you'll see that I actually made out pretty well. Not to mention that I entered GJ short in a much better spot and also reduced the number of overall pairs in DD.
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