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Building an equity millipede

  • #5,181
  • Jun 18, 2012 1:45am Jun 18, 2012 1:45am
Quoting luqmanz
Agree, my account also didn't hit more than -10%. This method really works.
Uqmanz, what currancy pair are you trying at the moment, is it a demo? How long have you tried the system for , are you winning ?
  • #5,182
  • Jun 18, 2012 2:23am Jun 18, 2012 2:23am
Quoting robert211
Uqmanz, what currancy pair are you trying at the moment, is it a demo? How long have you tried the system for , are you winning ?
I have been using Graeme's method-- with real account not demo-- since I discovered it in Jan.2011. I have found it to be great and I am definitely winning with it. I should say though that whereas Graeme makes approx. 40 trades a week I make around 20 trades a month (but even so my 'portfolio' of legs is growing)
  • #5,183
  • Jun 19, 2012 12:44am Jun 19, 2012 12:44am
Quoting robert211
Uqmanz, what currancy pair are you trying at the moment, is it a demo? How long have you tried the system for , are you winning ?
I trade both demo and live accounts using this method. Both are making good profit ... .. Drawdown is never greater than -10%. Growth is stable like VeeFX's chart above.... stable equity curve is what investors are looking for.

Pairs traded: AU EU GU.
  • #5,184
  • Jun 25, 2012 7:52am Jun 25, 2012 7:52am
Hi guys...

This will be my last post in this thread...i have been reading and re-reading this thread for last 6 months.I read this thread for 5 times.I am also trading in parallel.I always come here to read the entries that PIPEASY has thought.

I have no problem in pipping 15000 pips for small movement of 1000 pips by the market.Yes,you heard it right...15000 pips which i did it 3 times in last 6 months...but i was missing something may be some ingredient which made me to return to this thread very often...

Three points which PIPEASY was pointing is

1)participation -- yes,participate in the market...no matter how big your losses are..just participate...be in the market...let that reward you....

2)Low-risk entries--These entries comes into pictures when you want to cut down your losses and run your profits...THE ONE THING which you have...or which you need to have....

3)Growth -- From your setup.you know that price will move towards your direction for next 200 pips...then placing a trade and winning a single trade is not cool..but stacking n number of trades and profiting n*200 is cool...Let that positions grow and fetch you profit...

Today,i found out what is important...it's nothing but stacking...yes....grow your positions....you can easily earn very good amount of money in very small time....

Today was my great day...happy pippin....
I am a hunter...i kill both bulls and bears...
  • #5,185
  • Jun 29, 2012 5:47am Jun 29, 2012 5:47am
I have enjoyed this thread for many months now and have implemented different trading strategies to try and embody the millipede philosophy.

I would, however, like to explore any ways to improve on the basic concept...I know, I know...sounds like heresy.

One aspect I've always struggled with is losing all those pips to market retracement after a long run/stacking sequence. I have some ideas I'd like to bounce around if there is still interest in this thread from those experienced in using Graeme's strategy.

If there is, just post back here...I have my notifications on.
  • #5,186
  • Jun 29, 2012 12:42pm Jun 29, 2012 12:42pm
This doesn't happen very often. That is the 200 ema on a eur/usd monthly.


This could be a ripe opportunity to start building some major positions.
Attached Image (click to enlarge)
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  • #5,187
  • Jun 30, 2012 3:31am Jun 30, 2012 3:31am
Hi Spyderman,
I have been using Graeme's trading style for 18 months and I certainly believe in 'taking money off the table' as does Graeme in fact..
having said that, good ideas are few and far between so I'd love to hear yours!

best wishes,


Quoting spyderman
I have enjoyed this thread for many months now and have implemented different trading strategies to try and embody the millipede philosophy.

I would, however, like to explore any ways to improve on the basic concept...I know, I know...sounds like heresy.

One aspect I've always struggled with is losing all those pips to market retracement after a long run/stacking sequence. I have some ideas I'd like to bounce around if there is still interest in this thread from those experienced in using Graeme's strategy.

If there is, just post back...
  • #5,188
  • Jun 30, 2012 8:26am Jun 30, 2012 8:26am
Ever consider running multiple positions with diff Trails / TPs ?
  • #5,189
  • Jun 30, 2012 6:38pm Jun 30, 2012 6:38pm
So let's assume we're stacking positions on a healthy trend in the long direction.

For the sake of argument, let's say we have one lot position every 100 pips. We've moved our stops to BE as per Graeme's method. Price has moved 500 pips in our direction giving us the following pip values:

1 lot +500
1 lot +400
1 lot +300
1 lot +200
1 lot +100

Total in profit - 1500 pips.

Price now starts to reverse and we want to start taking trades in the opposite direction (short). Again we're just following the market, not predicting where it will go.

Now we're supposed to be okay with those positions dying at BE if that's what the market dictates. I'm just not a big fan of losing all those pips.

Problem is, as Graeme points out, is that if we close those positions out and take in the pips, price might reverse again in our original direction. And while we gathered in that 1500 pips we can never reclaim those positions and the unlimited potential they could have held should we have been at the turning point of a major multi-year market turn.

We can start stacking positions again in the long direction but we're starting from a different place in the price stream.

Does that illustrate the problem that many of you/us Equity Millipede traders are facing?
  • #5,190
  • Jul 1, 2012 12:36am Jul 1, 2012 12:36am
You can't be serious ?!

Quoting onesmith
Fundamentals have no relevance.
Patience is magic
  • #5,191
  • Jul 1, 2012 2:13am Jul 1, 2012 2:13am
Quoting spyderman
So let's assume we're stacking positions on a healthy trend in the long direction.

For the sake of argument, let's say we have one lot position every 100 pips. We've moved our stops to BE as per Graeme's method. Price has moved 500 pips in our direction giving us the following pip values:

1 lot +500
1 lot +400
1 lot +300
1 lot +200
1 lot +100

Total in profit - 1500 pips.

Price now starts to reverse and we want to start taking trades in the opposite direction (short). Again we're just following the market, not predicting where it...
You need to take partial profits. The way I do it ... I open 4 positions. 3 of them have different take profit. The last one, which has no target price, will be closed when market reverse or my fund closes.
  • #5,192
  • Jul 1, 2012 5:59am Jul 1, 2012 5:59am
Quoting luqmanz
You need to take partial profits. The way I do it ... I open 4 positions. 3 of them have different take profit. The last one, which has no target price, will be closed when market reverse or my fund closes.
But that does not follow the essence of what the Equity Millipede philosophy is all about.

If allowed to grow over time, those 3 trades you closed, could have grown to epic proportions. You may have gleaned 50 or 100 pips now but in two years they may have been worth 2 or 3 thousand pips each.

There's the rub.
  • #5,193
  • Jul 1, 2012 6:11am Jul 1, 2012 6:11am
Quoting spyderman
So let's assume we're stacking positions on a healthy trend in the long direction.

For the sake of argument, let's say we have one lot position every 100 pips. We've moved our stops to BE as per Graeme's method. Price has moved 500 pips in our direction giving us the following pip values:

1 lot +500
1 lot +400
1 lot +300
1 lot +200
1 lot +100

Total in profit - 1500 pips.
Hi spyderman

Here is how i close my positions...

If i were in downtrend,I close half of my positions if price close above the open of previous down candle...so 2 out of 5 positions will be closed and if the next candle also close in opposite direction of my 5 trades then i will close 1 more trade and diversify remaining 2 positions...(i.e., i will move them to b/e and see other pairs)

I do on daily charts so i have lot of time to decide which direction i can trade...i will stack again only when there is trend shown in weekly chart...
I am a hunter...i kill both bulls and bears...
  • #5,194
  • Jul 1, 2012 6:22am Jul 1, 2012 6:22am
Quoting spyderman
Does that illustrate the problem that many of you/us Equity Millipede traders are facing?
Fellow traders,

My point in posting this scenario was not to explore different ways and places to take positions off the table. All of these will result in the same thing. Poof...no more position.

My hope/goal was to explore, if possible, how to benefit from the pip gains the market has given us while at the same time not losing the potential future benefit of retaining those benefits...can we have our cake & eat it too.
  • #5,195
  • Jul 1, 2012 6:43am Jul 1, 2012 6:43am
Quoting spyderman
So let's assume we're stacking positions on a healthy trend in the long direction.

For the sake of argument, let's say we have one lot position every 100 pips. We've moved our stops to BE as per Graeme's method. Price has moved 500 pips in our direction giving us the following pip values:

1 lot +500
1 lot +400
1 lot +300
1 lot +200
1 lot +100

Total in profit - 1500 pips.

Price now starts to reverse and we want to start taking trades in the opposite direction (short). Again we're just following the market, not predicting where it...
That's the problem with taking a purely technical approach. If however you are as well good in determining when fundies have changed or the sentiment in the market place has changed, then you can have your cake and eat it too.
  • #5,196
  • Jul 1, 2012 6:51am Jul 1, 2012 6:51am
Quoting Custos
That's the problem with taking a purely technical approach. If however you are as well good in determining when fundies have changed or the sentiment in the market place has changed, then you can have your cake and eat it too.
And I think Graeme addresses those changes. He recommends diversification when the market direction seems unclear or there is reason to expect a change.

But if we close our positions (eat our cake) when the fundies or sentiment changes and then those same fundies/sentiments change again in the near future, where's our cake now?
  • #5,197
  • Jul 1, 2012 6:53am Jul 1, 2012 6:53am
Quoting spyderman
Fellow traders,

My point in posting this scenario was not to explore different ways and places to take positions off the table. All of these will result in the same thing. Poof...no more position.

My hope/goal was to explore, if possible, how to benefit from the pip gains the market has given us while at the same time not losing the potential future benefit of retaining those benefits...can we have our cake & eat it too.
Hey spyderman

First of all,all legs never survive...according to pipeasy or anyone whose is using this method doesn't have 100% survival legs...we divide the legs into short term,middle term and long term legs..only 4% of this legs survive as long term legs...rest of them die at b/e or at small profit...


keep pippin....have work to do..see u later...
I am a hunter...i kill both bulls and bears...
  • #5,198
  • Jul 1, 2012 7:01am Jul 1, 2012 7:01am
Quoting spyderman
And I think Graeme addresses those changes. He recommends diversification when the market direction seems unclear or there is reason to expect a change.

But if we close our positions (eat our cake) when the fundies or sentiment changes and then those same fundies/sentiments change again in the near future, where's our cake now?
well, not sure if Graeme is addressing those changes from a fundamental or sentiment side. I think he just uses price charts to determine that. (in my opinion not very effective)

With regards to changes in fundies/sentiment changes you have to be able to determine what will have a temporary effect and what will have a more long-term effect.
For example, that spain gets now money from the EU without any conditions is in my opinion only a temporary effect for positive sentiment. The underlying problems are not solved and the long-term sentiment is still down. So in that instance closing positions would be a bad idea.
  • #5,199
  • Jul 1, 2012 7:07am Jul 1, 2012 7:07am
Quoting oathbreaker
Hey spyderman

First of all,all legs never survive...according to pipeasy or anyone whose is using this method doesn't have 100% survival legs...we divide the legs into short term,middle term and long term legs..only 4% of this legs survive as long term legs...rest of them die at b/e or at small profit...

Hey oath breaker,

Yeah I appreciate that many trades will die (hopefully at BE and not a loss ). I'm more concerned with situations like in my initial example. Obviously there would have been many dead positions to get to that 5 position leg of 1500 pips. I just would like to avoid losing 900 of those pips to a 200 pip retracement before we say: "Hey...maybe I should diversify here"
  • #5,200
  • Jul 1, 2012 7:13am Jul 1, 2012 7:13am
Quoting Custos
well, not sure if Graeme is addressing those changes from a fundamental or sentiment side. I think he just uses price charts to determine that. (in my opinion not very effective)

With regards to changes in fundies/sentiment changes you have to be able to determine what will have a temporary effect and what will have a more long-term effect.
For example, that spain gets now money from the EU without any conditions is in my opinion only a temporary effect for positive sentiment. The underlying problems are not solved and the long-term sentiment is...
Custos,

All respect to your analysis. Tis probably way above my pay grade Probably a topic for totally different thread because I think you're right in indicating that Graeme doesn't concentrate on those issues. He indicated he doesn't ignore them, just doesn't concentrate on them.

It's interesting that your profile indicates you are an automatic and price action trader. Would seem neither would be swayed much by fundamentals... Have you changed your tack?
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