Build an Equity Millipede with the filtered Flying Buddha

Woke up this morning to find out we're seeing a pretty good retracement underway. Still haven't taken out the open from Friday but we did have a couple of positions stopped out. We'll have to see what the day holds to see which way we're going.

I'll place a buy stop at the daily 50% fib to catch it if it moves back up. I'll also look for some new entries on the H4.

I went ahead and took an entry on the H4 at 81.30 with a stop at 81.10. I got in late due to just getting to my terminal but pa seems to be moving northward again.

Buy stop filled at 81.45. Previous order moved to BE

I've been following up your thread for a couple of days now, am glad to see that you are practising master Graemes equity millipede strategy .i'll be happy to observe and participate here.
Best of luck.

Okay...we've had movement against our orders during the night and had a couple of positions stopped out. Price is trying to move back up so I've place a buy stop at the 50% fib at 81.14 with a stop loss at 80.76.

As a side note, if our daily bar closed right now we'd be below the open of a recent up bar so we would be closing out positions. We'll have to see what the days action brings.

Well all. We had a daily closing below a previous up bars open. So I have closed 1/2 of my positions. I had 8 positions open and have closed 4 positions for a total of 877 pips.

Price action is heading back up so I have taken another position on the H4 at 80.88 with a stop at 80.54

Moved stop to BE +2 on last entry.

I'm taking a new entry as the Daily passes through the 50% fib. Stop is at 80.50

Latest order moved to BE +3. Looks like price action is rising again. I missed a couple of H4 entries during the night...guess I'll have to give up sleeping or write an EA

New H4 limit order place at 81.52 with a stop at 81.30

Limit order hit.

Moved stop on last order to BE +2

Order stopped out last night. Waiting for more signals as price has moved back up. It's definitely meeting with resistance at the 82.00 area.

Well we've broken through resistance, so that's good for upward movement. We look like we might have an entry brewing for the new H4 bar in a couple of hours. Have to see what price action does till then.

I don't like to get overly aggressive on Fridays.

I have a new limit buy order placed at the H4 50 fib at 82.41 with a stop at 82.15

So Spider,

What is conclusion of the method? What are pros and cons of method according to you? What can be improved, what can stay? What if we have not catch this U/J pair...

Limit order hit

Well I think it's way to early for me to draw conclusions. I think I need to run with it for a while and see how many U/J like trends I can catch.

As mentioned earlier, I think it would be a mistake to expect to hit a large number of these runs. Here's a quote from Graeme's thread on Joe's methodology:

"He finds this very exciting and once told me that he reached 40+ positions before the first reversal candle and then continued to stack 30+ more positions before the next reversal candle. He believes that he banked enough pips for the next 100 rows of unlucky flying buddhas. What that means is, any loss accumulated from the next 100 rows of unlucky flying buddhas are already accounted and settled. A different mentality to most traders."

That being said, we can try and make adjustments as we go to diminish the draw down we experience.

Perhaps we look to trade pairs with a tighter spread than others, so that when our initial trades don't get to BE we don't get hit as bad.

As we get more familiar with the strategy we can discern which pairs are moving (at least for the moment) in a way that would compliment the system.

Any other ideas?

Maybe we could together during the weekends analyse the the best opportunities for next week...according to our little method and some basic PA staff. Or at least mention where are the potential FBs, ema crosses, wicks interpretation, engulfs, retraces and so on.

As we all know that in Forex you must to expect unexpected, all this analyse can be wrong. We have to follow the market as it moves and try stack in alignment of H4/D1/W1 TF. As well believe in your hindsight. Then we go opposite as new FB arrives on Daily as change of direction. We stick mostly as per spyder method.

I will try to make one simple analyse of market here. So jump in with your ideas...(of course we have to have similar strategy of trading as Spyder/Joe, FB+ema cross+Pa+some stacking discretion). Maybe all this is stupid...but lets try analyse market...

We can say:
P1 - top priority chart (max focus for stacking)
P2 - middle priority (send probes here and there with smaller risk)
P3 - low priority (almost no trades expect if some breakout happens)


eur/usd P2 sell (continuation W1 down but tripple wick bounce on D1 at 1.31, wait retrace on H4 to continue down to start stacking. It looks like it will drop down at W1 and this is new W1 cross down. This can be something huge...in down direction)

eur/gbp P3 ugly pair, everywhere wicks on D1, range D1, but doable on H4 (aim for 100pips - maybe I go out of method here but is it sense to keep legs in range of few months...We have too big stop losses for ranges and this is why only U/J pair it works well for now. Free your mind...)

eur/cad P2 its messy on Daily but H4 shows good pattern for H4 stacking in recent past by Joe method

eur/jpy P1 buy - immediately after H4 penant breakout start buy stacking

eur/aud P2 sell - we have engulf on D1, as well pretty choppy market. Maybe at H4 stack but I would not here hold legs infinite after we go out of range. Maybe pickup 100pips trades, but with few positions amplified.

usd/cad P2 - here I would follow market only on H4 as per Spider/Joe method. You can see that many candes at H4 in racent past are stackable at 50fib, while D1 and W1 is mess. Again aim for only 100pips or Joe method, but after it starts to move one direction keep legs. Maybe keep one leg just in case if trend continue.

usd/chf P2 - bit messy, W1 says up, D1 says up, but H4 has FB with engulf bar in sell direction. As well it retrace from 0.92 level. I would probably try few sell stacks with moving to BE asap. Probably will continue up soon.

usd/jpy - P1 buy - MN trend up with soon ema cross, W1 up with huge momentum, D1 broke recent penant(range). Here stack from D1 and H4.

cad/jpy - P2-P1 buy - but here are huge retraces on D1/H4 so stacking according to Joe method will not work the best. Probably here would be nice to stack when H4 ema cross up in the direction of D1 (or after retraces).

I am too lazy to continue since I dont know if anyone going to read and check this . However its seems that jpy is weak across board for now.

As well it seems that USD started to be stronger....
for example check...

aud/usd W1, engulf, it seems it will drop, its seems that this can be new sell opportunity with big potential, daily is down, H4 is down so maybe good chance for start building long term legs here.
nzd/usd same...

gbp/usd - sell - if D1 brakes supports this can be new chance for build new long term legs. Or if it retrace go opposite pickup big oscillation move.

Any ideas? Maybe we analyze only best pairs (P1). Maybe, this is too long post. Maybe we dont analyze anything

Batman,

I appreciate your take and analysis. I think it would definitely help to filter trades going through this type of process.

Personally, I choose to do that at the time of, or just before, a signal to enter. I hate spending too much time looking at trades that never come about.

That's one of the advantages of using the Daily as the trigger time frame. We have the time to study the pair at the time of the signal to decide whether we want to take the entry.

There's definitely many times I don't take the trade due to primarily price action.