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  • #1,041
  • Mar 3, 2012 4:47pm Mar 3, 2012 4:47pm
Quoting yonnie
I also cant see why anybody would hedge, because right at that moment you`re taking the loss and your equity will be down isnt it?

without a hedge your margin will be higher.

so what is the advantage of hedging?
That is true for most of the time - same pair hedging has no direct benefit except psychological, and to preserve a position temporarilly, for example while going to sleep.

There are a few startegies that employ same pair hedging; ie grids, but there is also the strategy that basically allows you to wait for the primary trend to develop.

Many say that what is the point since you might just as well re-open the position again. The point is that you are in the market. If you run a demo, then there is no benefit, but if you are trading a real account, keeping the position keeps you in tune with the market rythym.

A more effective way to hedge is to use highly correlated instruments, ie EURJPY and GBPJPY with addition or EURGBP.

http://en.wikipedia.org/wiki/Triangle_arbitrage.

Which is also a way for US residents to freeze their positions over night or any period of time.

When applied correctly this allows you to minimize your risk, and take advantage of the market cycles.

For example Short GBP/JPY long EUR/JPY and Long EURGBP.
  • #1,042
  • Mar 3, 2012 5:00pm Mar 3, 2012 5:00pm
Quoting courtneywild
Sorry Eamonn I missed this.

Attached... monitor all positions one chart. plus news and strength.

Cheers
Hi Courtneywild,
How did you change the colour of the currency strength metre to make it easier to read?
I like the way you have set up your dashboard, would you be willing to share your template.
  • #1,043
  • Mar 4, 2012 5:02am Mar 4, 2012 5:02am
Quoting Cosmo
Hi Courtneywild,
How did you change the colour of the currency strength metre to make it easier to read?
I like the way you have set up your dashboard, would you be willing to share your template.

Hi
Yep post it next week.
Meantime on chart right click choose indicators
Select C S Mtr
Edit
inputs
scroll down
change all to white save changes
Cheers
CW
  • #1,044
  • Mar 4, 2012 2:31pm Mar 4, 2012 2:31pm
Thanks CW, appreciate your prompt reply.
  • #1,045
  • Mar 5, 2012 12:48am Mar 5, 2012 12:48am
Quoting Cosmo
Thanks CW, appreciate your prompt reply.
There you go Cosmo.

I use two charts side by side.

Do well.

CW.
Attached File(s)
File Type: tpl pit samir.tpl   13 KB | 424 downloads
File Type: tpl pit profit & csm.tpl   24 KB | 418 downloads
  • #1,046
  • Mar 5, 2012 3:31am Mar 5, 2012 3:31am
Thanks CW... appreciate your help.
  • #1,047
  • Edited 6:33am Mar 5, 2012 6:06am | Edited 6:33am
Quoting AnthonyC
Hi Chips,

I've been following the thread with interest since the beginning and have been demo'ing with great success for weeks! Thank you very much!

I need to work a bit on managing the trades that go against me. My strategy is currently to:

(1) enter a trade in the opposite direction (Hedge) for the same lot size (as the original trade) to "lock in" the loss and prevent further drawdown. Then,
(2) wait for the market to decide its direction. Then,
(3) enter another trade for the same lot size again, in the new direction (determined in step...
notice the movement ofthe market over the pastfew weeks...if you had sell positions in dd, you would be printing money....growing the bal ....controlling dd...the market would then return.....to cycle the loss...but you would be printing ...along the way....and icrease the equity....as the market cycles notice the dd reducing.

hedging pauses.the loss...so with patience ....the cycle will retrun to make the loss position .profitable.....but keep printing...watching the max dd limit...at all times...

think profit....

sometimes the market ...does not move ...to the loss position fast enough..it takes ..time....but..think profit...on the move back.and away....here you cam implement...position reduction if you dont want to hold on or carry the loss.

watching your max limit.....at all times..

dont add more positions and get greedy..

why accept the loss now.....from you capital.give the broker free money...

pause....the loss....then think profit...have patience..but you need practice..to see for yourself...

to feel the wave of the dd moving up and down....but taking out profit as it happens
  • #1,048
  • Edited 9:59am Mar 5, 2012 9:11am | Edited 9:59am
Ask yourself, would I use a business line of credit to invest and grow my business...how long will it take pay off the line of credit..is it feasible to do so, when you are planning to be in business over the longterm?

so now....We use business principles to trade the forex...OPMs

CORE Elements

1. Profit
2. Patience
3. Profit Loss profit or swings or cycles
4. Positions size
5. Principles of Business

All these are factors that influence and allow anyone to controll DD ..
All you need to do is set the MAX dd limit and apply these elements above.

We are not trying to buy at the exact turning point...or peak of the swing...we are staying in using position size...and follow and profit..and control..the DD while all this happens ..until theres another swing/cycle ..we follow..controlling the DD ...

Now you need the techniques...of how to controll DD.

BUY above the previous day close and SELL below.
use hedging...to freeze ...loss positions....Think about the elements above.

Control Greed...DONT trading more than your account can handle.

This is about operating your business..using OPMs...

The market doesn't move as fast as most ppl think..

DEMO..and practice

There is no other way to trade but to control DD...or management of you account of money....


There are other advance ..techniques...but use the game mode...buying the fastest moving ..pair in profit..from the indicator..

This will show you the cycles, it build confidence, that you can hold and control the loss and profit greater than the loss...because of the cycle and employing proper position size.

Stop adding trades...if you are close to your DD threshold... notice the cycle.

for DEMO....enter a position BUY if price is above the daily or SELL on any pair... dont do anything....let it sit there for a week or more...notice what happen, this is understanging the cycle the swings..


The cycle or swings is core of the market......

To be hones the pricision entry that you are looking is NOT so important...what important is controlling the DD....

One can BUY and SELL also at round numbers....ending with 00 and control the DD when price moves from there....

On my live account...I'm carrying a -VE DD bal but in control..but the Account has grown to levels..never seen ... But I thinking profit..and freezing the loss and then profit and STOP trading. and the market moves.. you see those positions in loss reduce by doing nothing and your equity increases..

and it happens over and over..and your Acount bal grows


Cheers...
  • #1,049
  • Mar 5, 2012 9:54am Mar 5, 2012 9:54am
chips,

so if I understand you correctly hedging losses can be an important tool. you might use hedging if your dd is at a high level?

once 1 leg is in profit you can close this out.
then wait for the cycle to hopefully close the other leg in profit.

when you close out the first leg in profit, the loss on the other leg would be larger.
but you might do that, because the dd is not high at that moment?

is my thinking correct?
thank you
  • #1,050
  • Mar 5, 2012 10:30am Mar 5, 2012 10:30am
Quoting yonnie
chips,

so if I understand you correctly hedging losses can be an important tool. you might use hedging if your dd is at a high level?

once 1 leg is in profit you can close this out.
then wait for the cycle to hopefully close the other leg in profit.

when you close out the first leg in profit, the loss on the other leg would be larger.
but you might do that, because the dd is not high at that moment?

is my thinking correct?
thank you
There is no hoping here.... hedging i very important..in DD control

prices move in swings...so eventually price will swing back to the loosing position....So if you take profit....on the hedge... the loss will continue to float....up ..down... watching the MAX DD limit...

if the loss grows...freeze it.. STOP taking profit. if its close to your limit. Now if you account cannot handle this it will be hard to implement,
if the DD is not within the limits then trade in the +ve direction of the hedge...taking profit.

BUY aabove the close SELL Below


Now stocks that go bad after time....what do you do with it? it's part of the cost of operating the business....over time...


point is you are in control ....of your losses/cost...not the borkers stop loss.. and then the market take off without you and your initial capital is down...2% risk.

notice when the cycle returns...let it cycle the position or trade back in the direction ...not with same lot size but with a smaller one...taking profit... Position averaging with patience...

Most ppl rush to create profit..but applying business pricinples with clear target eliminate the need to rush in

I have shown DD positions..but because were are taking profit...profit.

You will be able to close all postions with growth....if you maintain your profit ratio to DD....by at least 2:1
  • #1,051
  • Mar 6, 2012 4:28am Mar 6, 2012 4:28am
Quoting chips
Ask yourself, would I use a business line of credit to invest and grow my business...how long will it take pay off the line of credit..is it feasible to do so, when you are planning to be in business over the longterm?

so now....We use business principles to trade the forex...OPMs

CORE Elements

1. Profit
2. Patience
3. Profit Loss profit or swings or cycles
4. Positions size
5. Principles of Business

All these are factors that influence and allow anyone to controll DD ..
All you need to do...
Thanks for this Chips. Yet another straight forward to the point reminder of what works.
Back into it this week. Closed out yesterday at BE and today I have already finished my session 1pm lunch time having bagged +7.45% today, leaving a basket open at 2% DD well within my overall DD limit of 15%.

What I love about this system is it is all about MINDSET. And this is the key I am finding more and more. If I am slightly of center my returns are much lower and choices much weaker. Its a lesson in thinking.

In my opinion this beats the heck out of rsi, stoch, macd, ma, hekin, bollinger, fractles, 5min,15 min,1hu,4hr,daily, etc... done all them to death over many years.

This is about feeling the flow of the market, taking tactical risk, setting limits and being bold yet not outrageous, confident and quick more like. Thats why what Chips says makes sense, you must PRACTICE over and over and it will "click"

CW.
  • #1,052
  • Mar 6, 2012 7:32am Mar 6, 2012 7:32am
Decided to try a new demo this afternoon with Vantage. Starting balance $3000. Closed out at +2.34%. Keep you posted.
  • #1,053
  • Mar 6, 2012 10:41am Mar 6, 2012 10:41am
I had two positions in dd(demo) from monday.closed them all in profit after 3 trades to the rescue.
So far its a bit relaxing..if i see dd trades , i hedge it. Then look for the biggest profit pair to rescue the trades.Woredk for the past few weeks. The only difference is the time to close them all. All of this with the negative swaps. Rinse and repeat.Its a waiting game.
About the hedge question though , wasnt much difference from using SL. This is the subjective question..i think we can use both hedge or sl it depends to the trader. Most important is we came out in positive territory. This is perhaps one of the good trend method i had ever seen, since its all simple when you do it all..at first it looks complicated, but when you rinse and repeat it gets simpler. So what remains is to build confidence, and have a good track record..possibly a year or two in a different market (sideways,ranging ,trending) so we can keep trading this. Then we can dive in a live account.but maybe somebody had did it already.
  • #1,054
  • Mar 6, 2012 12:01pm Mar 6, 2012 12:01pm
Quoting courtneywild
decided to try a new demo this afternoon with vantage. Starting balance $3000. Closed out at +2.34%. Keep you posted.
even a blind squirrel could find a nut today

:d
Attached Image (click to enlarge)
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It takes a lot for me to IGNORE you, but you can try.
  • #1,055
  • Mar 6, 2012 7:31pm Mar 6, 2012 7:31pm
Quoting Erebus
even a blind squirrel could find a nut today

:d
correct... a good day with a strong JPY. However you do it is good.
  • #1,056
  • Mar 9, 2012 5:48am Mar 9, 2012 5:48am
Quoting courtneywild
correct... a good day with a strong JPY. However you do it is good.

Courtneywild,

So far, I am learning something new with the Pitbull strategy. My problem most often though, I ended up sending hedges (hedge the hedged) up to 4 trades in a pair. I then close all the 4 trades when everything/profit balance to avoid further dd and restart sending trades anew. My lot varies from .01 to .05, sometimes 0.10. Kindly comment if I am on the right track or not and explain further how you do your hedges.

Edd
  • #1,057
  • Mar 9, 2012 6:45am Mar 9, 2012 6:45am
Quoting Edd Ganuelas
Courtneywild,

So far, I am learning something new with the Pitbull strategy. My problem most often though, I ended up sending hedges (hedge the hedged) up to 4 trades in a pair. I then close all the 4 trades when everything/profit balance to avoid further dd and restart sending trades anew. My lot varies from .01 to .05, sometimes 0.10. Kindly comment if I am on the right track or not and explain further how you do your hedges.

Edd
Edd

Sounds OK to me though not sure on 4 trades. I hedge with either a trade in opposite direction with larger lot size or adding a trade to a pair in profit momentum.

I don't always use a hedge position to control DD. If there is a good moving pair I would add to that and not hedge the pair in DD by going opposite on same pair. eg...

If a pair has gone to DD but the momentum is out of the pair and its ranging I don't use a same pair opposite direction hedge, as it isn't going anywhere so the trade you are putting on to reduce DD will stay flat and not reduce DD perhaps for some time

Also If a pair goes DD, I would hedge same pair with at least double lot size. But of course it means this new trade may also enter DD if the pair are tuning as you enter and now you are in a DD with larger lot size . so, patience is the key.

It takes practice.

11.5% this week closed out now.

Cheers
  • #1,058
  • Mar 11, 2012 5:57pm Mar 11, 2012 5:57pm
Quoting courtneywild
Edd

Sounds OK to me though not sure on 4 trades. I hedge with either a trade in opposite direction with larger lot size or adding a trade to a pair in profit momentum.

I don't always use a hedge position to control DD. If there is a good moving pair I would add to that and not hedge the pair in DD by going opposite on same pair. eg...

If a pair has gone to DD but the momentum is out of the pair and its ranging I don't use a same pair opposite direction hedge, as it isn't going anywhere so the trade you are putting on to reduce DD will stay...
Courtneywild,

Thank you. Yes, it takes practice. One scenario that I am not comportable is how to get out of dd when it reached 250-300 pips or more on a single pair. Sometimes I am anticipating that it will revert/turn back to where it came from. So instead of hedging, I end up adding trades in the direction of the first trade to recover back the losses. Sometimes it works (sometimes not), chopping every profit as they appear. How do you approach this kind of trades?

Edd
  • #1,059
  • Mar 12, 2012 12:03am Mar 12, 2012 12:03am
Quoting Edd Ganuelas
Courtneywild,

Thank you. Yes, it takes practice. One scenario that I am not comportable is how to get out of dd when it reached 250-300 pips or more on a single pair. Sometimes I am anticipating that it will revert/turn back to where it came from. So instead of hedging, I end up adding trades in the direction of the first trade to recover back the losses. Sometimes it works (sometimes not), chopping every profit as they appear. How do you approach this kind of trades?

Edd
Sorry Edd are you saying if as pain goes signif DD you add another pair in same direction?
  • #1,060
  • Mar 13, 2012 7:04pm Mar 13, 2012 7:04pm
Quoting courtneywild
Sorry Edd are you saying if as pain goes signif DD you add another pair in same direction?

Courtnyewild,

Yep. For example right now I am on dd on the xxxjpy pairs. I am anticipating it will turn back added several positions thinking to ride when the trend will reverse, but it just keep climbing up.

Edd
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