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Amazing Black Magic Trading Method

  • #201
  • Jul 23, 2012 3:32pm Jul 23, 2012 3:32pm
Quoting Chicky
Trying a long bounce from here. This is not a Jesse Livermore trade, just a scalp.
Added 0.3 lots. Still a scalp until Tomorrow NY open.
The Thief of Wall Street
  • #202
  • Jul 24, 2012 2:03pm Jul 24, 2012 2:03pm
Quoting Chicky
Added 0.3 lots. Still a scalp until Tomorrow NY open.
Enough experiment on Jesse Livermore’s method. Here is the summary of this experiment and the amended method. Don’t know if it will work, but lets give it a try.

1. We entered short based on all the fuckups going on in euro zone. Got stopped out few times on spikes up. Finally got one trade right and recovered the loss. We went long, against the underlying conditions, speculating that these may start reversing at 1.2250, a major level. But this did not happen. We again lost this trade.

2. Our positions were so big that a spike up not only gave great loss but drastically reduced our operating capacity. However, as mentioned earlier, if our positions (risk) is not high, there is no way we can multiply our account, like Jesse multiplied. But Jesse used to set a “shoe string” stop-loss after entering a heavy position and immediately got out when things did not go in his direction from the very beginning. However, once in green, he continued holding his position during the times pa temporarily went against him. He referred to this as “sitting tight”.

3. What Jesse did was to maintain his operating capacity. We did not do this. We did not try to maintain our operating capacity. We did not try to keep our operating capacity intact because if we do that, we can earn some profit but cannot multiply our account.

They only way to multiply the account while keeping our risk at acceptable level is to go for compounding. This is what I am going to do from this point forward.
The Thief of Wall Street
  • #203
  • Jul 24, 2012 2:05pm Jul 24, 2012 2:05pm
Quoting Chicky
Enough experiment on Jesse Livermore’s method. Here is the summary of this experiment and the amended method. Don’t know if it will work, but lets give it a try.
1. [size=3][font=Calibri]We entered short based on all the fuckups going on in euro zone. Got stopped out few times on spikes up. Finally got one trade right and recovered the loss. We went long, against the underlying conditions, speculating that these may start reversing at 1.2250, a major level....

I dont understand why you went long ??
Alternatives are more important than the plan itself
  • #204
  • Jul 24, 2012 2:09pm Jul 24, 2012 2:09pm
Quoting -Melo-
I dont understand why you went long ??
Me too. I still wonder why I went long. It was against the basic principle.

Maybe becuase our positons were so heavy that a decent spike up would have washed away significant portion of our account and I was afraid that this woud happen at 1.2250.

Trying to correct that.
The Thief of Wall Street
  • #205
  • Jul 24, 2012 2:16pm Jul 24, 2012 2:16pm
Quoting Chicky
Me too. I still wonder why I went long. It was against the basic principle.

Maybe becuase our positons were so heavy that a decent spike up would have washed away significant portion of our account and I was afraid that this woud happen at 1.2250.

Trying to correct that.
............ and all you fucking visitors to this thread kept on watching, no one corrected me.
The Thief of Wall Street
  • #206
  • Jul 24, 2012 3:14pm Jul 24, 2012 3:14pm
Quoting Chicky
............ and all you fucking visitors to this thread kept on watching, no one corrected me.
Chicky,


Here's my 2 cents on your comment.


It was you that said you were using a modified version of the J.L method at the start of this thread. This last Buy, you clearly stated was not a J.L trade.

If you cannot follow your own rules, or those of J.L's.....what's the point?


As for compounding - I agree, but J.L did it with the intention of having a pre-set amount. So - if your going to do 4 lots in total, you need to break it up, add as the position goes in your favor, and when you reach 4 lots - STOP.


I for one, hope you get this down - I am watching your progress with great intent as I do see that merits of this.


Best,

-Al Mo
  • #207
  • Jul 24, 2012 9:08pm Jul 24, 2012 9:08pm
Quoting Chicky
............ and all you fucking visitors to this thread kept on watching, no one corrected me.
I prefer not to tell people what to do, I'm often wrong. You have more experienced than me so I thought that you knew what you were doing. I went short, but I was skeptical that my short would be a winner for this week. It was more of a longterm trade
Alternatives are more important than the plan itself
  • #208
  • Jul 24, 2012 9:52pm Jul 24, 2012 9:52pm
Quoting -Melo-
I prefer not to tell people what to do, I'm often wrong. You have more experienced than me so I thought that you knew what you were doing. I went short, but I was skeptical that my short would be a winner for this week. It was more of a longterm trade
This is fuckin' tenth time I am writing this respones. Everytime it logs me out from FF the half way.

Lol. No one is ever sure which way it will go next.

This modified version of Jesse Livermore method will focus more on his money management technique than anything else. Direction, either right or wrong, will matter only how soon we get the desired results. If we are wrong, won't lose much but that will delay our killing strike for huge profit.
The Thief of Wall Street
  • #209
  • Jul 25, 2012 12:09am Jul 25, 2012 12:09am
Quoting Chicky
This is fuckin' tenth time I am writing this respones. Everytime it logs me out from FF the half way.

Lol. No one is ever sure which way it will go next.

This modified version of Jesse Livermore method will focus more on his money management technique than anything else. Direction, either right or wrong, will matter only how soon we get the desired results. If we are wrong, won't lose much but that will delay our killing strike for huge profit.
whether or not I'm wrong, I used this chart to make my decision on the Eur/Usd. Its a monthly chart. Maybe it will fit better with your strategies since you are a longterm trader
Attached Image (click to enlarge)
Click to Enlarge Name: euroee.gif Size: 27 KB
Alternatives are more important than the plan itself
  • #210
  • Jul 25, 2012 1:29am Jul 25, 2012 1:29am
Quoting Chicky
............ and all you fucking visitors to this thread kept on watching, no one corrected me.
haha..

what am see is the entry sir chicky,to many position entered while not yet confirmed,sure will be very profitable when the moves favour our entry

But personaly,am prefer your second last thread method with 1% rules,but with that method am prefer ride the profits until it exhausted rather than close it 1:1 RR
If there was easy money lying around,no one would be forcing it into your
  • #211
  • Jul 27, 2012 12:54pm Jul 27, 2012 12:54pm
looks like you are back on the track
Alternatives are more important than the plan itself
  • #212
  • Jul 27, 2012 1:57pm Jul 27, 2012 1:57pm
Quoting FXMindset
haha..

what am see is the entry sir chicky,to many position entered while not yet confirmed,sure will be very profitable when the moves favour our entry

But personaly,am prefer your second last thread method with 1% rules,but with that method am prefer ride the profits until it exhausted rather than close it 1:1 RR
1:1 1% Risk/Reward method is good for technical traders. But it requires a lot of patience. Sometimes we gain or lose 1% in minutes trading few pips and other times we get or give 1% maybe in weeks trading several hundred pips. But this is the best method I have ever developed.
Jesse Livermore’s method requires balls……………… big and strong balls. I don’t know if I have balls strong enough to apply this method trading live. But if it works, will try to multiply a small sum. Jesse’s method requires risking much less than what I initially thought and therefore much longer wait to see the results.
The Thief of Wall Street
  • #213
  • Jul 27, 2012 1:59pm Jul 27, 2012 1:59pm
Quoting -Melo-
looks like you are back on the track
Was I off the track?
The Thief of Wall Street
  • #214
  • Jul 27, 2012 4:10pm Jul 27, 2012 4:10pm
Quoting Chicky
Was I off the track?
maybe , I dont know
Alternatives are more important than the plan itself
  • #215
  • Jul 27, 2012 5:16pm Jul 27, 2012 5:16pm
Quoting -Melo-
maybe , I dont know
Its good that we both don't know..................... Let's ask somebody else.
The Thief of Wall Street
  • #216
  • Jul 28, 2012 12:13am Jul 28, 2012 12:13am
Quoting Chicky
Its good that we both don't know..................... Let's ask somebody else.
Alternatives are more important than the plan itself
  • #217
  • Jul 29, 2012 6:07am Jul 29, 2012 6:07am
You might be right with Jessie's method but the important thing is, Jessie correctly spot the trend or trend change, not like you, jump here and there all the time.
  • #218
  • Jul 30, 2012 11:57am Jul 30, 2012 11:57am
Quoting duyk20
You might be right with Jessie's method but the important thing is, Jessie correctly spot the trend or trend change, not like you, jump here and there all the time.
I really appreciate your comments and thanks for analyzing my trades.

Yes he did, but not always. He was wrong many times........... sometimes very very wrong and at least once he thought line of least resistance was down but he later realized it was up.

If you look at all these trades I entered, they are basically two. 1) First, I went short, and then 2) from 1.2250 I am trying to embark on a long trend if it develops. It is just that pa is shuttling at 1.2250 level.

The mistake which I earlier did was to carry the trades while under Margin Alert. If I lose let's say 100 pips while under margin alert, need 200 or probably 400 pips to recover when pa goes in my direction after a margin call becuase my operating capacity is severly damaged by a margin call. I am now trying to keep my account balance at a distance from a margin call by not carrying trades under margin alert.

This is what I did today. Closed 25,000 units when pa was hanging below 1.2250 but later added 30,000 units when it started attempting at 1.2250.

What I really learned from the experience is that being right or wrong on trend direction does not matter as much as money management does.
The Thief of Wall Street
  • #219
  • Jul 30, 2012 12:40pm Jul 30, 2012 12:40pm
Quoting Chicky
What I really learned from the experience is that being right or wrong on trend direction does not matter as much as money management does.

I have to disagree Chicky.

MM is what saves your ass when your wrong.

Trend Direction is what puts you on the right foot to begin with, assuming you did your homework.


As a better trader than I once said

"When you know what the trend is, it doesn't matter where you get in "
  • #220
  • Jul 30, 2012 12:42pm Jul 30, 2012 12:42pm
FTI has a thread here - while I disagree with the full method (as IMO, its Martigale in its finest), it does suggest that MM when used properly, irregardless of trend, can save you 9/10 times.

The 10th time unfortunately, is the one that hurts....
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