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Pitbull Trader with Position Building

  • #481
  • Jan 19, 2012 11:37am Jan 19, 2012 11:37am
lets talk about positions. Some ppl might say the market sentiment has changed and we are in a buy market.
But hopfully we all were able to see the cycle from our postions on the EUR etc.
I went in DD and took a couple weeks to cycle, almost to a profit maybe in a few more days.

Notice the DD on the USDJPY. I was't at the computer to manage that trade, but there will other oppourtunity. as long as the position size is correct I'm not worried.
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  • #482
  • Jan 19, 2012 12:13pm Jan 19, 2012 12:13pm
Quoting TheDirtySerb
Well since you're allowed to hedge I would say follow the method Chips is presenting. For example say your weakest pair is AUD/JPY, or it is the furthest into DD. You could take out a long position in that pair to balance your hedge and reduce further DD. I have to rely somewhat on chart analysis because I cannot hedge and therefore have to open a larger position in order close out my largest losing position. You can trade it either way as long as you find a way to compensate for the pair that is hurting you the most. The thing that I like about...
Interesting idea Serb. Since I am not able to hedge either, will try your method. One worry though. Let's assume we enter a trade (which was initallly in profit with 0.01 lot) with a 0.04 lot. now instead of going in our direction the market changes and we are in the negative with the 0.04 lot. We have a bigger problem with DD now since we increased our lot. What is your input on this?
Thanks..
  • #483
  • Jan 19, 2012 12:58pm Jan 19, 2012 12:58pm
Quoting The7
Interesting idea Serb. Since I am not able to hedge either, will try your method. One worry though. Let's assume we enter a trade (which was initallly in profit with 0.01 lot) with a 0.04 lot. now instead of going in our direction the market changes and we are in the negative with the 0.04 lot. We have a bigger problem with DD now since we increased our lot. What is your input on this?
Thanks..
Yeah I addressed this problem a few pages ago since the same question was asked. Right now it depends on when the position is entered. If I enter it during the peak times of London or New York sessions and it starts breaking against me 10-15 pips, I will close it out and try again. But so far I've been successful at picking the right time to enter. So basically what I do is say GU is our fast moving profitable pair. I look at the chart and wait for a slight pullback and thats when I enter with a bigger lot. Use a fib, S&R, or whatever you feel comfortable with. I never enter at the top of a move, always wait for a pullback. I think we have to assume some risk without the ability to properly hedge.

Let me say that the hardest time to add to a position was when the basket was new. It was almost as if the bigger position had to be right otherwise the whole thing would fall apart. Then when the basket was well into positive it was much easier to pick a spot to enter with a larger position and let it bounce around a little. The pressure was much less. Hope this helps.

One more thing. This is my first week trying to trade this way with this method. I'm still learning too. So if there are better suggestions, I'm all ears. And finally, if you're starting a new basket, I would wait until Sunday night to do it. You never know what a Friday will do and Sunday gaps are always possible. Good luck.
  • #484
  • Jan 19, 2012 4:16pm Jan 19, 2012 4:16pm
Thanks for the feedback Erebus, espirt and TheDirtySerb. I am currently testing it and will post back later with results. Has anyone thought about making an EA that opens the 10 pairs at "x" time?
Direction is more important than speed. Alot of people go nowhere real fast
  • #485
  • Jan 19, 2012 4:36pm Jan 19, 2012 4:36pm
Quoting traderjess87
Thanks for the feedback Erebus, espirt and TheDirtySerb. I am currently testing it and will post back later with results. Has anyone thought about making an EA that opens the 10 pairs at "x" time?
I believe the script on page 1 will open all the positions. But I think you can only specify lot size such as .01 or .10, but not the time. Not really sure I dont use it.
  • #486
  • Jan 19, 2012 4:39pm Jan 19, 2012 4:39pm
You could, but really that is not that important. That is just a macro, and anyway you will want to change the composition on a monthly or weekly basis anyway to augment for macro events, rate changes and fundementals and offcourse correlation resulting from that.


Quoting TheDirtySerb
I believe the script on page 1 will open all the positions. But I think you can only specify lot size such as .01 or .10, but not the time. Not really sure I dont use it.
  • #487
  • Jan 19, 2012 7:37pm Jan 19, 2012 7:37pm
Quoting courtneywild
Chips

Whats your view on the 14 pair basket please.

My account still stands at 50% increase since 3rd Jan...

Learning not to overtrade... is my key.


Thanks.

PS a by the way, I find the: A samir Universal pitbull indi very handy with this system. thanks to the poster
The 14 basket pair is more diverse and covers the market generally.
Actually Brijon recommends the 14.

I for one uses the 14 also with the position building methods. However, care must be taken, when holding postions longterm as interest charges can -ve affect the account.

I trade all 14 in the direction of the weekly Trend. At the start of the week
I review all the pairs and enter small postion in the direction of the weekly trend. Always stay with the weekly trend. Sometimes the longterm trend can get stuck in retracement for weeks, there are techniques to trades those.

I will post the methodology this weekend.
  • #488
  • Jan 19, 2012 7:43pm Jan 19, 2012 7:43pm
Quoting xfran
Hello Chips.
Can you tell me that you rely in deciding where to place limit orders?.
Thanks
xfran, I'm using a technique used by Brijon to controll the DD. it its really reliable. You do need charts to do this.

Basically i'm buying LL using the Bosun lines in an uptrend and selling HH in a downtrend on the 4h TF. With technique a grid is formed, very realiable, I am also using the square 48 indicator. I like those, they are reliable, I do play market order also.

Checkout his videos. there are really no need to use stop loss if you are using proper position sizes.

something to think about. I always try to understand new concept because the business is configure for ppl to loose.

DEMO DEMO...and DEMO

cheers
  • #489
  • Jan 19, 2012 10:35pm Jan 19, 2012 10:35pm
Chips, reg your #487 - I am not doubting your statement but could you please provide a link to post or quote where B states a preference for 14 pairs Cheers
  • #490
  • Jan 19, 2012 10:40pm Jan 19, 2012 10:40pm
Quoting mobthehop
Chips, reg your #487 - I am not doubting your statement but could you please provide a link to post or quote where B states a preference for 14 pairs Cheers
His most advance hedge method is using T101 basket.

google advance multicurrency trading by brijon. He talked about it as the basis for hedge trading.

however the pairs of 10 is fabulous also.
  • #491
  • Jan 20, 2012 12:05am Jan 20, 2012 12:05am
Quoting chips
The 14 basket pair is more diverse and covers the market generally.
Actually Brijon recommends the 14.

I for one uses the 14 also with the position building methods. However, care must be taken, when holding postions longterm as interest charges can -ve affect the account.

I trade all 14 in the direction of the weekly Trend. At the start of the week
I review all the pairs and enter small postion in the direction of the weekly trend. Always stay with the weekly trend. Sometimes the longterm trend can get stuck in retracement for weeks, there...
Thanks for that, thats very interesting. Act bal +53% and the maximum DD i have experienced is 7.9% with this system.
Sticking to the very core basics. Basket 0.01 trades 0.10.

If my 0.10 trades go to far in DD I first close out 0.05 then hedge with 0.10. it means giving the b'ker the 0.05 but my equity is still increasing. So far its an interesting alternative to straight hedge especialy if there is no really strong pair to make sales with to reduce DD.
  • #492
  • Jan 20, 2012 12:45am Jan 20, 2012 12:45am
Quoting courtneywild
Thanks for that, thats very interesting. Act bal +53% and the maximum DD i have experienced is 7.9% with this system.
Sticking to the very core basics. Basket 0.01 trades 0.10.

If my 0.10 trades go to far in DD I first close out 0.05 then hedge with 0.10. it means giving the b'ker the 0.05 but my equity is still increasing. So far its an interesting alternative to straight hedge especialy if there is no really strong pair to make sales with to reduce DD.
interesting...
this is a good concept for us traders who are demoing this method.
.
  • #493
  • Jan 20, 2012 12:48am Jan 20, 2012 12:48am
I will keep my postions for the weekend.
There might be a selloff today but, this is part of the game.

the week will close up so next week, I will add more on the retracement.
lets see. not Bad for 3 weeks of trading.
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  • #494
  • Jan 20, 2012 1:03am Jan 20, 2012 1:03am
Quoting chips
interesting...
this is a good concept for us traders who are demoing this method.
.
i find that because i close .05 and open .10 it catches up much quicker and reduces dd without the need to employ riskier lot sizes .40 .50

infact i no longer open .40 or .50 as .10 provides me with sufficient equity growth (keeping the greed monster locked up!).
  • #495
  • Jan 20, 2012 1:04am Jan 20, 2012 1:04am
Quoting chips
I will keep my postions for the weekend.
There might be a selloff today but, this is part of the game.

the week will close up so next week, I will add more on the retracement.
lets see. not Bad for 3 weeks of trading.
very nice indeed
  • #496
  • Edited 1:30am Jan 20, 2012 1:11am | Edited 1:30am
This should start a new discussion as we are talking business principles and how it applies to forex.

Interest rates affect every business, the more interest you pay on you loan the more it affect profitability. This nothing new.

So that's why ppl say they will trade the pairs as indi and not in live account.

Now how do you implement the concept of interest rates in live trading so that this helps to build the account and help reduce the DD.?

Ideally we are interested in high yielding currencies. Stocks that add value to the account rather than take away.

Overtime interest payments will make it difficult to realize a profit if we keep printing money, using -ve interest currencies.

How do we fight this force.

Bring you ideas forward in relation to the basket.

Brijon made this clear to me in a post , but it's business principles and I do take into account the compounding effect of interest rates.

We want to be on the +ve side.

He said wealth is created by the compounding effect of interests rates on your investments. This is something everyone knows but ignore in their trading.

I learn new things everyday...and I try my best to pay attention to detail

Do they teach this type of stuff in the forex courses.

So it the business management of the account and how we can use interest rates to control our DD overtime buy holding on to positions that will be compounded daily +vely, so this will off set the -ve interest payments to yeild a profit on the bottom line, while we continue to make sales and increase the bal, and increase the equity and controll the DD.

making these position work for, instead of us working for the positions.

So we should start buy compiling the list of the highest yeilding currency on the long/short.

From there we make the business decisions, to offset the account buy holding value add currencies, overtime this helps to control the DD.

I like to talk business and business concept



Thanks guys.
  • #497
  • Jan 20, 2012 2:12am Jan 20, 2012 2:12am
http://seekingalpha.com/article/1883...rning-interest

worth a quick read
  • #498
  • Edited 3:26am Jan 20, 2012 2:52am | Edited 3:26am
Quoting courtneywild
http://seekingalpha.com/article/1883...rning-interest

worth a quick read
You are the best.
I do hope that everyone can see, why earning interest on the higher interest currency will help in controlling DD.

This is as good as it gets.

A part of the reason the why the pairs are trade together, So
note all the pairs that pay us interest long or short.
Make a plan to capture the interest daily and tripple on wednesdays. So now we are building positions strategically on stocks earning interest daily as the maket moves.


cheers
  • #499
  • Jan 20, 2012 9:00am Jan 20, 2012 9:00am
Closed all trades and basket for W/E

Equity 7980 +54.4%
Gross profit 5463
Net profit £2805
Slightly slower week but overall not bad from 3rd Jan
No stop loss used.
No charting.
The main point for me is i did not give my account to the Br'ker... !
One week left in Jan for a full moth results.

Thanks Chips
  • #500
  • Jan 20, 2012 9:28am Jan 20, 2012 9:28am
Hi Courtney

impressive results

out of interest - have you calculated what your figures would have been if you hadn't actually opened the indicator account trades (ie. the 0.01 lots) and used a "virtual" indicator account instead.

I ask because a lot of the detractors of this thread (when they have actually explained why they are against the method) are generally mentioning that opening the hedge trades could be somewhat harmful (though over the last few years not so)

I ask because this method is a continuation of Brijon's Pitbull method, which is in essence a cut down version of the original T101 method.

Another thing as other people have noticed is that the basket is missing the CHF pairs which lend to the basket being more balanced - because people continually mention BOJ interventions, but seem to forget that the Swiss (SNB) also like to intervene (they did so twice last year - leading to the resignation of one board member due to his wife's currency dealings!!)

Regards, John

Quoting courtneywild
Closed all trades and basket for W/E

Equity 7980 +54.4%
Gross profit 5463
Net profit £2805
Slightly slower week but overall not bad from 3rd Jan
No stop loss used.
No charting.
The main point for me is i did not give my account to the Br'ker... !
One week left in Jan for a full moth results.

Thanks Chips
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