Amazing Black Magic Trading Method | Page 15 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

AMAZING Strategy!!! 3,266 replies

bo7a method... method for GBP/JPY 205 replies

Firebird V1.0 an amazing EA ! 33 replies

Amazing Disaster Trading Stories!!! 4 replies

Amazing Trading Stories!!! 9 replies

Attachments: Amazing Black Magic Trading Method
Exit Attachments

Amazing Black Magic Trading Method

  • #281
  • Aug 24, 2012 12:27am Aug 24, 2012 12:27am
Quoting Chicky
ThAnks


Let me open the position but this time it will be based on above mentioned rules.

I am not so sure about fundamentals.

Opening 1/3rd lot
I can't argue about the fundamentals [here]. That is something that , IMO, has no bearing on this experiment., but since its your modified rule set - its really your call.


Good of you to start back using the JL's original entry rule .

Don't forget about the 10% NAV SL - that is important.
  • #282
  • Aug 24, 2012 1:03am Aug 24, 2012 1:03am
Quoting almo
I can't argue about the fundamentals [here]. That is something that , IMO, has no bearing on this experiment., but since its your modified rule set - its really your call.


Good of you to start back using the JL's original entry rule .

Don't forget about the 10% NAV SL - that is important.
Edit- I just realized 10% NAV cannot be the answer. SL's would end up being over 2000 pips (Oanda's max).


Starting to look like we are going to have to rethink this again....
  • #283
  • Aug 24, 2012 1:12am Aug 24, 2012 1:12am
Quoting almo
Edit- I just realized 10% NAV cannot be the answer. SL's would end up being over 2000 pips (Oanda's max).


Starting to look like we are going to have to rethink this again....
We have 1100 to lose in 250 pips . That is 4.4 per pip or a position size less than 1/2 lots. That's why we have to go up to 25% risk.
The Thief of Wall Street
  • #284
  • Aug 27, 2012 2:17pm Aug 27, 2012 2:17pm
Quoting Chicky
Our base now is 1.2500 and risk will average between 15% and 25%.

We are going until trend lasts . If 1.2500 support becomes visible on Daily, will adjust the position by adding more and sl at 1.2400 ie 100 pips below our support and maybe 250 to 200 pips from our average entry
Not following the plan. Trying to set and forget a position at 1.2500 support , but news not in favor.
The Thief of Wall Street
  • #285
  • Edited 11:47am Aug 28, 2012 11:30am | Edited 11:47am
Quoting Chicky
Not following the plan. Trying to set and forget a position at 1.2500 support , but news not in favor.
Using one more tactic that helps following Jesse's method. Based on this method closed major positons. Let me explain:

The term "Killing" as Jesse used is not just booking profits, but to me it is the whole process from plunging to realizing profits. However, Jesse plunged with a "shoe string" margin. We cannot plunge with shoe string margins in today's volatile market. It will be naive of us to believe our shoe string margins will survive like his. This market today is much more volatile than it was in Jesse's time about 100 years ago because of the speed with which we communicate now. What is the alternate?............... There is no definite alternate to this, but the best I can think of is to instead of closing all positons at once, keep on reducing the positons when market goes against and adding them back when market goes in favor. Now, how do we know market is going against or in favor in this volatility?............... the simple answer to this problem is to have a price benchmark. My benchmark at this time is 1.2500. After London close, I expect it to hang around at 1.2550. But if this proves itself a support, will become the next benchmark, so on and so forth. If it becomes so, we know what to do. If one is not sure what I just said, may like to read this post one more time.
The Thief of Wall Street
  • #286
  • Aug 28, 2012 11:43am Aug 28, 2012 11:43am
Quoting Chicky
Using one more tactic that helps following Jesse's method. Based on this method closed major positons. Let me explain:

The term "Killing" as Jesse used is not just booking profits, but to me it is the whole process from plunging to realizing profits. However, Jesse plunged with a "shoe string" margin. We cannot plunge with shoe string margins in today's volatile market. It will be naive of us to believe our shoe string margins will survive like his. This market today is much more volatile than it was in Jesse's time about 100 years ago because...
We are getting closer to this resistance. The right time is to "complete buying" when it becomes support. But one has to gradually build positions and therefore would need to start early on and wisely.
Attached Image (click to enlarge)
Click to Enlarge Name: 313.jpg Size: 133 KB
The Thief of Wall Street
  • #287
  • Aug 28, 2012 2:25pm Aug 28, 2012 2:25pm
Quoting Chicky
We are getting closer to this resistance. The right time is to "complete buying" when it becomes support. But one has to gradually build positions and therefore would need to start early on and wisely.
Placed a pending buy near 1.2500
The Thief of Wall Street
  • #288
  • Aug 28, 2012 9:07pm Aug 28, 2012 9:07pm
Quoting Chicky
Placed a pending buy near 1.2500
Refined the order at 1.2527
The Thief of Wall Street
  • #289
  • Aug 29, 2012 9:34am Aug 29, 2012 9:34am
Quoting Chicky
Refined the order at 1.2527
Order filled

Added one more lot. If this level become support.....good. If not, will reduce position size.
The Thief of Wall Street
  • #290
  • Aug 29, 2012 11:19am Aug 29, 2012 11:19am
Chicky, while you are buying, werent you saying at the start of this thread, that Jesse always followed fundamentals? I dont think they have changed that much. In fact they didnt change at all.

T
"I know one thing, that I know nothing." Sokrates
  • #291
  • Aug 29, 2012 11:27am Aug 29, 2012 11:27am
.
Quoting Chicky
However, after switching to longer term trading, he either placed his bets before or just after the break but only if he was sure that overwhelming fundamentals and market situation supported that likely break. ...
"I know one thing, that I know nothing." Sokrates
  • #292
  • Aug 29, 2012 5:12pm Aug 29, 2012 5:12pm
Quoting Tom_D_Trader
Chicky, while you are buying, werent you saying at the start of this thread, that Jesse always followed fundamentals? I dont think they have changed that much. In fact they didnt change at all.

T
yeah... Its so difficult to make any prediction on the EurUsd these day. this chart is run by empty word that can be spelled at any moment and could send the market up or down.
Alternatives are more important than the plan itself
  • #293
  • Edited 5:55pm Aug 29, 2012 5:44pm | Edited 5:55pm
Quoting Tom_D_Trader
Chicky, while you are buying, werent you saying at the start of this thread, that Jesse always followed fundamentals? I dont think they have changed that much. In fact they didnt change at all.

T
Tom,

The way I interpret fundamentals, they are pointing up. Its only some recent news that does not favor euro. For last several weeks, I am trying to get into a long position.

I did one try again in the past 24 hours, but 1.2526 level does not seem be holding. If it holds, will try one more time.
Attached Image
The Thief of Wall Street
  • #294
  • Aug 29, 2012 5:51pm Aug 29, 2012 5:51pm
Quoting Tom_D_Trader
.
That joker also advised try not to pay too much for your positions and enter gradually.

Now, there are two ways one could enter in piece meal, 1) every position is at a higher price regardless of line of least resistance, or 2) every trade is at a price higher than previous but on line of least resistance.

I am not following either of these two, just signifcant price levels.
The Thief of Wall Street
  • #295
  • Aug 29, 2012 6:06pm Aug 29, 2012 6:06pm
Quoting Chicky
Tom,

The way I interpret fundamentals, they are pointing up. Its only some recent news that does not favor euro. For last several weeks, I am trying to get into a long position.

I did one try again in the past 24 hours, but 1.2526 level does not seem be holding. If it holds, will try one more time.
Entered longs.

If it breaks 1.2526, found another support at 1.2509. Taking a chance.
The Thief of Wall Street
  • #296
  • Aug 29, 2012 10:34pm Aug 29, 2012 10:34pm
Quoting Chicky
Entered longs.

If it breaks 1.2526, found another support at 1.2509. Taking a chance.
Chicky - fwiw...ignore the fundamentals. Your doing well just following PA. Its when you start factoring in the fundamentals that you start breaking the rules...and you already know how that ends.
  • #297
  • Aug 29, 2012 10:49pm Aug 29, 2012 10:49pm
Quoting almo
Chicky - fwiw...ignore the fundamentals. Your doing well just following PA. Its when you start factoring in the fundamentals that you start breaking the rules...and you already know how that ends.
I find transition from short-term to longer term difficult. Gaining or losing few pips on a bounce is not very difficult with high leverage. But I want to see if Jesse was for real or just a myth.

Manytimes I feel it was his money management that helped him. Logically no body can earn that much merely based on either fundamentals or technicals or both combined. To me, his success was because of this:

“In the course of accumulating my full line I might chip out fifty or sixty thousand dollars in these feeling-out plays of mine. This looks like a very expensive testing, but it wasn't. After the real movement started, how long would it take me to make up the fifty thousand dollars I had dropped in order to make sure that I began to load up at exactly the right time? No time at all! It always pays a man to be right at the right time. As I think I also said before, this describes what I may call my system for placing my bets. It is simple arithmetic to prove that it is a wise thing to have the big bet down only when you win, and when you lose to lose only a small exploratory bet, as it were. If a man trades in the way I have described, he will always be in the profitable position of being able to cash in on the big bet.”
The Thief of Wall Street
  • #298
  • Aug 29, 2012 10:55pm Aug 29, 2012 10:55pm
Quoting Chicky
I find transition from short-term to longer term difficult. Gaining or losing few pips on a bounce is not very difficult with high leverage. But I want to see if Jesse was for real or just a myth.

Manytimes I feel it was his money management that helped him. Logically no body can earn that much merely based on either fundamentals or technicals or both combined. To me, his success was because of this:

[color=black][font=Times New Roman][size=3][font=Calibri]“In the course of accumulating my full line I might chip out fifty or sixty thousand...
Chicky....I hate to be the one to say this - the difficulty lies in the charts your using. You from time to time will post anything from 15m -> 5 m, which tells me that the minute your in any serious profit, your looking to cash out and reverse. This isn't how he traded.

Try to picture his spreadsheets, and what they were telling him. You might want to pull out some graph paper and plot the points. It should shed some light.


**edit - if you follow the exercise, you will find out what he meant by line of least resistance.
  • #299
  • Aug 29, 2012 11:14pm Aug 29, 2012 11:14pm
Quoting almo
Chicky....I hate to be the one to say this - the difficulty lies in the charts your using. You from time to time will post anything from 15m -> 5 m, which tells me that the minute your in any serious profit, your looking to cash out and reverse. This isn't how he traded.

Try to picture his spreadsheets, and what they were telling him. You might want to pull out some graph paper and plot the points. It should shed some light.
I haven't cash out anything yet. Just tried two trades. The first was short and the second is long. I got 4 or 5 margin calls because of overtrading. Then reduced my leverage / closed position before losing positions eats up all my margin. That helped. One such example is today's closing and re-opening of the long positions.

I went long from short because of change in fundamentals. Explained earlier.

As far as Jesse's spreadsheets are concerned, they are so neat and clear with all his company name, dates, stock, etc, that I doubt they are very genuine. If I have correctly understood his sheets, all main and secondary trends, red and black inks, etc. that he used were to identify a trend reversal based on HHs and LLs.

He plunged when first retrace ended, risking only accumulated profit and/or a portion of his own money. Before that, he just took testing positions. But if I calculate his risk/return, it does not correspond with his above statement unless he went for a r:r more than 1:20 or so.
The Thief of Wall Street
  • #300
  • Aug 29, 2012 11:19pm Aug 29, 2012 11:19pm
Quoting Chicky
I haven't cash out anything yet. Just tried two trades. The first was short and the second is long. I got 4 or 5 margin calls because of overtrading. Then reduced my leverage / closed position before losing positions eats up all my margin. That helped. One such example is today's closing and re-opening of the long positions.

I went long from short because of change in fundamentals. Explained earlier.

As far as Jesse's spreadsheets are concerned, they are so neat and clear with all his company name, dates, stock, etc, that I doubt they are...

Ok....I won't continue with the discussion on fundamentals...those are your demons you unfortunately need to face.


As for the Spreadsheets...you are correct on the HH and LL's, and looking at the intermediate trend reversals.

Where does the line of least resistance come into play , now that you understand this? In fact....how would you draw a line when your not using a chart?


edit...nevermind...that's too cryptic even for me.

what happens when you start tracking the interemediate HH LL's?
0 traders viewing now