Pitbull Trader with Position Building

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M.

In my experience...you can only really learn by experience. The theory here is helpful but can only be confirmed by trading live/demo.
2 weeks ago i closed trades which after few months i realised i had turned over 1000 pips dd into +250pips profit. On my live account i had after 1 - 2 months i had turned close to -800 pip dd into breakeven and some profits.
Actually i didnt have to had this kind of dd. Early on few months ago i am still learning what to trade, when to hedge/cutloss ..nowadays i have some idea. I generally did hedge/cutloss( for USA resident only cutloss) when a position is -200p or more ..i also hedge when a pair is on the top two highest position(i usually trade the top down position which is the biggest profits in the basket indicator) so when it goes to the opposite direction i hedge it, or cut loss. Yes you can use SL if you prefer.

Example( indicator basket)
Day 1.

Long AUDJPY -145p
Long GBPJPY -130
Long EURJPY -100
Short EURUSD 50
Short GBPUSD 150
Short AUDUSD 200

On day 1 i would traded GBPUSD and AUDUSD

Day 2:

Short AUDUSD -220
Long AUDJPY -200
Long GBPJPY -35
SHort GBPUSD 40
SHort EURUSD 177
Long EURJPY 240

So i would hedge /cutloss AUDUSD

In the real world my indicator basket is 14pairs. If i had a trade in dd , theres usually 2- 3 trade in profits. When the 2-3 trades in profit > trades in dd.. i close all.
In my mind there is another option.Lets say you have a trade in DD which is -150pips. The other trade in profit +20p +30p. What you will do is reduce the exposure in the DD trade. SO you would close 1/3 of the dd position which is 50pips. Close the the +20p and +30p trades too. Open new trades on the top three or two most fastest and profitable pairs in the basket indicator. Note this is different from the method chips / brijon taught but i used a lot of the principals. Be profit minded.

There got the be a limit to dd always..its up to you to set it but make sure its lower than 1000pips and more than 50p or 100p since it could only be a retracement. But the basket indicator can also be a guide..look at the pairs current position in the basket.

How did i get to the -1000pips dd.
I always reset the basket indicator everyday..the indicator i used reset itself auto every 24hours. So i used to see frequent jumps up/down in the basket indi everyday.

The turnaround.
I eventually switched it to one week reset. Example .Today is 14 August 2012. I opened a basket indicator on 7august 2012 which is one week back (which you can set on the indicator). I would leave the basket indicator untouched unchanged. So the next week on 21 August 2012 i used 14 August 2012 as the basket indicator for the whole week.Rinse and repeat.
Maybe this mirrors the weekly trend or not ... but i find the weekly trend even more strong and reliable. I forgot how many times i shorted EURJPY,GBPUSD ,GBPJPY and CHFJPY i few weeks back. These really do move alot. The trend tend to stay for a long time. The key for me is to get the strongest trend then milk it till dry.

Some traders here can trade with a daily basket which they reset it everyday which i may yet be able to do..i trade slower than these people but that does'nt mean they are not successful.Just find what is suitable for you.The above is some way or guide but dont follow it 100% ...tweak it..read the posts by chips,courtneywild and some others..formulate your own way to trade. I checked the position 2 times a day , a few minutes each. There is alot gems, gold on their posts its good to make your own strategy by it. If you cannot trade intraday then trade the weekly trend. Choose...

Practice is the one word that this system revolves around. Chips said it a million times (well not quite a million) Demo demo... I always run demos regardless of live trading.

When you practice you will find the nuances.

Plus control GREED. Its easy to over trade this system.

When you know were to look it makes life easy

Yes i can see were demo and live are different I am still learning until i have a few months experience i wont trade live with this.

I think ill except the hedge as a pure indicater, and will only look at three or 4 trades using the pit bull as an indicater, but of course if the bottom line is a profit ill lqiidate all ,and put a new pit bull hedge on.

The 4 trades ill pick on 3 highest profit pit bull signals by first confirming them with my indicaters and currency meter.

I wil try and always find a buy and a sell , as this will stabalize drawdown i think ,if i make a mistake,and then look for a third trade as trend bias, only if it is in the top profits.

I will use at anyone time 3 maxium trades--2 counter buy and a sell and third bias the trend.


Rather than chasing loads of trades i think specializing in best 3 trades will help my drawdown control with luck.

that is my present strategy thinking

I am of the opinion if you destroy the basic hedge your drawdown will suffer

I think i can manage three trades that i can controll easier for me then drawdown above 5 is reflected in my three plus 5 % only

later on im sure i will learn more from all of you . but i can see some clear thinking coming im learning from you very fast



































I T

can someone explain how you use these 2 indicaters together or how you use just the samir indicater

I don't use RSI it would mean a chart!
This is how I use samir... better when in trend either short or long to trade.

Pairs showing over 30 to 40 have start of momentum 60 to 90 moving strongly, 100+ momentum.

This a grear help Mr courtneywild.

Your fast reply is super . it helps me so much

So as SAMIR shows long no profit is above 30 to 40 you wait before buying 60 t0 80 is strong buy 100 plus is super is this how i should understand as all long are below your entry crirea is that corect

Hey Courtney - I know that you are closing your basket every day. What do you do if your basket is in a drawdown (lets say 2.5% DD)?

Here is the xmeter....

Cheers

Hi SmartGXL

Yes sorry I overlooked that.
If my basket is in DD by an amount I am not prepared to cut... I do leave it open to see if I can trade out the following day. I do close baskets in DD if the amount as insignificant. Good spot SGXL.

I used samire today today made 6 trades all profit i used profit loss cycle and samire short.

although it was only demo i think i could maybe when i get experience have hedge and samir in demo ,and trade live from signals .

but so far ive been so lucky it works, and its so simple system.

after all the advise and help from you nice people.

Hi guys,

First i want to thank Brijohn ,chip,greame and trader 101 for sharing there knowledge whit everybody,all of them have inspired me greatly and gave me a different view of the market.

I am trying to learn this method, the last few weeks i have read this trhread and also the the T101 thread to get a better understanding of basket trading.

The last few days i started practicing on demo to get a better feel and intuition.
The last few hours i have seen the basket go from short to long to short and a few minutes ago i saw it go in 30 seconds from short to long.

Is today the kind of market that whe should stay out and go do something else?

Is there somewhere some kind of chat/skype room of people trading this method? It would be a big help for me if i could talk to someone while trading this live.
I see it as if my mind has to be calibrated to recognise some kind of market conditions and this works the best when i can see it hapening life while trading.

Greetings from belgium.

Hi Fantastic,

Which SAMIR file did you use?

Cheers!

SmartGXL

That's me for the week and in fact three as holidays beckon...

+ 25% for the week so happy with that.
Had to do some serious DD management but it worked out ok.
Used larger lot size to hedge .50 and closed out some loss trades when hedge trade overtook then let hedge trade run up profits.
There is no right or wrong way just build equity is the key. Along with demo practice and managing greed feelings.

Sitting Duck
It impossible to say there is a bad day and a bad day can become a good day! Its subjective and the market is to fluid to say its set as Bad or good (IMHO). Trade the bottom pair and mange DD whilst adding to equity. KISS.

Keep calm and carry on.

Come back Chips.

Have a great rest of June.

CW

Hi Courtney,

Thanks for the reply, it is a eyeopener for me see that you made 6% profit today when i tought it was a bad day.
I also just realized that if the trend changes i will automaticaly hedge the losing trade by trading the bottom line.

Enjoy your well deserved holiday

hi
how you have acolum of year an quartet how do i do this?
thank you
+ 25% for the week so happy with that.
Had to do some serious DD management but it worked out ok.
Used larger lot size to hedge .50 and closed out some loss trades when hedge trade overtook then let hedge trade run up profits.
There is no right or wrong way just build equity is the key. Along with demo practice and managing greed feelings.

Sitting Duck
It impossible to say there is a bad day and a bad day can become a good day! Its subjective and the market is to fluid to say its set as Bad or good (IMHO). Trade the bottom pair and mange DD whilst adding to equity. KISS.

Keep calm and carry on.

Come back Chips.

Have a great rest of June.

CW[/quote]

courtney,

I hedge like superbandam3 when a trade is 2-2 1/2 x daily ATR under water, but if that hedge trade would be against the long term trend, I might just freeze the loss or do nothing.

I have a feeling that you wont let your trades go into dd that much before taking action.
Realising that there is no right or wrong way to trade, I would like to know how you handle the dd to get another perspective.

could you give a detailed explanation of how you handled that .50 hedge and is that how you handle your runaway trades generally?

I`m sure your continuous contribution is so much appreciated by all of us.

I uploaded for you.
I am using both signals from the hedge plus SAMIR for best momentum.
reading over 30 as MR Courtney wrote. and compare reading with currency strength.

I look at open closing price of yesterdays and use small lot test say .o2 if goes into profit, i add then larger lot take small profit off,
let run as this gives bias to hedge as trend in SAMIRE.

I set take profit at 10 pips, i have stop loss mental only, at below test price of entry. plus less trading range of 15minute time frame.
i then use loss profit loss cycle and leave trade run its cycle.

Best for me is use one one demo. run hedge and all trades, but another demo for small test trade and main trade,

May be future for live trading may be when i learn more.

I have so far good feeling about my start and have been very lucky .

I have opinion that MR COURTNEY is very good, and he explains so simple
i understand perfect.

it was a great help how he said he traded with SAMIR and MOMENTUM

especialy for Me.

thank you all from your help