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Amazing Black Magic Trading Method

  • #141
  • Jun 21, 2012 11:07am Jun 21, 2012 11:07am
Quoting steve10%
Apologies if I am wrong but I think you possibly missunderstand what he is saying.
Jesse buys the 6000 at average 111 3/4 reading my book and price is 114.
After this rally finishes (could go higher 115 or 116 say) price retraces and holds above average entry say 112 1/4 [would he have sold if it had gone below 111 3/4?].
Price starts to rise and gets to 113 3/4 just below his previous entry.
He now puts in a market moving order to test the markets opinion,as he gets filled with rising prices he is happy there is potential for the stock to rise.If...
Hi Steve,

What I get from him is to:

1. Go with underlying conditions
2. Focus only on Mega Trends
3. Cut your losers and let your winners run until fundamentals start changing.

The only issue is the starting capital. As he few times metioned, it took shit out of him to execute a trade at times when he had limited starting capital. He had to be right from the very begining.

In this experiment, I am just following general market conditions and risking not based on what I now have in my account, but what would be the account balance after few successful trades. If I lose let's say $9,000 out of total $10,000 of initial capital, this $9,000 would just be a fraction of my account balance after hitting three or four successful trades.
The Thief of Wall Street
  • #142
  • Jun 21, 2012 10:58pm Jun 21, 2012 10:58pm
Cancelled limit orders. Will manually place trades.
The Thief of Wall Street
  • #143
  • Jun 22, 2012 11:18am Jun 22, 2012 11:18am
Quoting Chicky
Cancelled limit orders. Will manually place trades.
Placed as much margin allowed. Total position 1.7 lots. Want to bring it to at least 4 lots and then wait until everything goes in Euro's favor and against USD.
The Thief of Wall Street
  • #144
  • Jun 22, 2012 11:21am Jun 22, 2012 11:21am
Quoting Chicky
Placed as much margin allowed. Total position 1.7 lots. Want to bring it to at least 4 lots and then wait until everything goes in Euro's favor and against USD.
you are now looking for longs?
  • #145
  • Jun 22, 2012 11:25am Jun 22, 2012 11:25am
Quoting Custos
you are now looking for longs?
NO.

Will look for longs only after fundamentals change. Overall fundamentals are against Euro and it may take months for them to change and bring back investors' confidence.

What meant that I intend to carry 4 lots until fundamentals change.
The Thief of Wall Street
  • #146
  • Jun 22, 2012 11:27am Jun 22, 2012 11:27am
Quoting Chicky
NO.

Will look for longs only after fundamentals change. Overall fundamentals are against Euro and it may take months for them to change and bring back investors' confidence.

What meant that I intend to carry 4 lots until fundamentals change.
oh, now I understand what you mean, thanks
  • #147
  • Edited 2:50am Jun 26, 2012 2:37am | Edited 2:50am
After two margin calls, this position is showing almost a 100% return on balance left after the margin call. It will require doubling the account few more times to multiply the original capital. Obviously, euro cannot go that much down unless it is end of euro. To multiply this account, I will have to keep changing the direction with the change in underlying fundamentals . This is exactly what Jesse used to do.

The two major issues in applying Jesse's method is margin requirement and retraces. One has to constantly remain short of margin (under Margin Alert) in a bid to multiply the account. If one is under margin alert, a healthy retrace will definitely give a margin call. Therefore, following Jesse's method, one can either avoid a margin call or multiply the account, but cannot do both.

These are the issues associated with applying Jesse's method in today's currency market.

After this experiment, I am of the opinion that since currency market tends to maintain a balance, Jesse's method has limited utility for currency traders. Maybe a trader could double down his/her investment on one or two moves a year but not more than that ............unless one takes a risk of going broke,.................. just like what Jesse did.

Glad that I did this experiment.

Will continue this thread just to see what happens, but got many answers.
The Thief of Wall Street
  • #148
  • Jun 26, 2012 10:07am Jun 26, 2012 10:07am
Quoting Chicky
After two margin calls, this position is showing almost a 100% return on balance left after the margin call. It will require doubling the account few more times to multiply the original capital. Obviously, euro cannot go that much down unless it is end of euro. To multiply this account, I will have to keep changing the direction with the change in underlying fundamentals . This is exactly what Jesse used to do.

The two major issues in applying Jesse's method is margin requirement and retraces. One has to constantly remain short of margin (under...
Here is the chart showing what I am talking about.

I had to open several positions from 1.2700 to 1.2500 whenever some margin was available. Now I can only multiply my account over 500 or so pips if I keep on opening new postions. If I don't open new positions, may gain a little, but won't be able to multiply my account. If a retrace occurs at this or any other level while I am in this trade, will again get a margin call.
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The Thief of Wall Street
  • #149
  • Jun 28, 2012 12:40pm Jun 28, 2012 12:40pm
If it forms a bottom here, Jesse Livermore will get screwed.
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The Thief of Wall Street
  • #150
  • Jun 28, 2012 10:41pm Jun 28, 2012 10:41pm
The first thing I thought of when I saw the spike up was "oh nooooooo"
  • #151
  • Jun 29, 2012 7:08am Jun 29, 2012 7:08am
Noo, Jessie did it again
  • #152
  • Jul 4, 2012 1:06pm Jul 4, 2012 1:06pm
Quoting duyk20
Noo, Jessie did it again
LOL. Yes, he did it once again.

I was traveling and could not enjoy that spike.

The recent margin call closed the position with some profit.

Once again short with 1.1 lots.
The Thief of Wall Street
  • #153
  • Jul 4, 2012 1:20pm Jul 4, 2012 1:20pm
Quoting Chicky
LOL. Yes, he did it once again.

I was traveling and could not enjoy that spike.

The recent margin call closed the position with some profit.

Once again short with 1.1 lots.
I think you just did it again. You opened that thread a month ago, had 60 trades with which you brought down your account 70%.
I don't think jessie traded that often as you did and especially not 60 trades on one instrument.
  • #154
  • Jul 4, 2012 1:53pm Jul 4, 2012 1:53pm
Quoting Custos
I think you just did it again. You opened that thread a month ago, had 60 trades with which you brought down your account 70%.
I don't think jessie traded that often as you did and especially not 60 trades on one instrument.
I think there is some confusion here. I have so far entered only one trade i.e short from near 1.2500. I don't know how much jesse lost on a trade, but you are right, 70% seems too high. But if I don't risk that much, cannot multiply my account like he did. There is a missing piece somewhere.
The Thief of Wall Street
  • #155
  • Jul 6, 2012 8:47am Jul 6, 2012 8:47am
Back to 2.2 lots.
The Thief of Wall Street
  • #156
  • Jul 6, 2012 2:02pm Jul 6, 2012 2:02pm
2.5 lots.

If it goes further down, will add more.

Let's see if Jesse can achieve selling target of 4 lots.
The Thief of Wall Street
  • #157
  • Jul 6, 2012 2:57pm Jul 6, 2012 2:57pm
Quoting Chicky
I think there is some confusion here. I have so far entered only one trade i.e short from near 1.2500. I don't know how much jesse lost on a trade, but you are right, 70% seems too high. But if I don't risk that much, cannot multiply my account like he did. There is a missing piece somewhere.
This is recent history of trades.

The red circled level is where Jesse was stopped out (3rd margin call). He re-entered again at almost the same level, but was able to achieve the operating capacity of 2.5 lots only after pa crossed 1.2300.
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The Thief of Wall Street
  • #158
  • Jul 6, 2012 3:13pm Jul 6, 2012 3:13pm
Quoting Chicky
OK.

This is our demo account. This is first time I will be using Jesse's method on Daily timeframe. If satisfied with my performance, will live trade here with a $100 account. In a rare situation, if this account falls below $10, will be replenished.

Snapshot: June 1 2012 1:30 am
I started with $14 in my Oanda testing account to generate $100 for this fuckin' Jesse Livermore testing. That account played the same moves as that of demo but little conservatively. That account now has a Net Asset value of over $40. As soon as (and if) it gets to $100, will switch from this demo to that real account. Will use modified version of Jesse Livermore's method learning from this experience.
The Thief of Wall Street
  • #159
  • Jul 9, 2012 2:08am Jul 9, 2012 2:08am
Quoting Chicky
I started with $14 in my Oanda testing account to generate $100 for this fuckin' Jesse Livermore testing. That account played the same moves as that of demo but little conservatively. That account now has a Net Asset value of over $40. As soon as (and if) it gets to $100, will switch from this demo to that real account. Will use modified version of Jesse Livermore's method learning from this experience.
Nice. Keep on shorting until it bends.
  • #160
  • Jul 10, 2012 10:06am Jul 10, 2012 10:06am
Quoting duyk20
Nice. Keep on shorting until it bends.
My target is little above 1.1800. If it gets there will look for a reversal.

Added some more, the postion now is 2.7 lots. The next margin call will leave a balance of $3,378, that will be $400 profit.
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The Thief of Wall Street
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