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Building an equity millipede

  • #5,841
  • Apr 22, 2013 3:22am Apr 22, 2013 3:22am
Quoting miekra
{quote} Hi Veefx, Movers and Shakers - is it MT4 indiacator? Have a nice day miekra
Nope.. but should be pretty easy for anyone to port it on MT4.

http://forexforums.dailyfx.com/blogs...rketscope.html
Staying in my lane...
  • #5,842
  • Apr 23, 2013 6:02am Apr 23, 2013 6:02am
Quoting VEEFX
{quote} Nope.. but should be pretty easy for anyone to port it on MT4. http://forexforums.dailyfx.com/blogs...rketscope.html
Hello Vee,

Many tks for the hint.

Have a nice day.

miekra
  • #5,843
  • Apr 26, 2013 1:33am Apr 26, 2013 1:33am
Vee (I delete most of my posts within 24 hours)

Respected Vee don't know what made you to delete the post showing your trading results. For me it was a motivation and milestone to be achieved. Also did the mistake of not saving the post. Best regards.
Roy
  • #5,844
  • Apr 26, 2013 1:49am Apr 26, 2013 1:49am
Quoting cameron1st
{quote} Relief can only be found inside you, rather than in other people. Everything is an illusion ... truth, lies.. who defined what is what ? You do. What is a lie for me, it might be the truth for you. Lost loved ones ? Maybe, but life is change ... a flowing river, why expect that things would be the same forever ? Always treasure the time spent with them and move on to new challenges. What does this have to do with trading ? Well, behind those candles there are millions of people trading, each of them with their own problems and emotions and...
Mr.Cam very great full for your reply. Trader is not simple businessman,they are more than that. Feel lucky that I chanced such association. I gain immensely. Always look forward to you people's posts. Best regards. Roy
  • #5,845
  • Apr 26, 2013 3:09am Apr 26, 2013 3:09am
My favorite quote from Graeme found here: http://www.forexfactory.com/showthread.php?p=4406292

4. Staying humble in your pursuit - We all hate our day jobs. We have big dreams however the reality is different. Once you try to rush to your freedom you will never find it, ironically, you will find freedom when you dont pursue it. Profitable progress in trading should look negligible but it is this slight negligibility that grows into inevitability. Dont rush and dont aim for your ferrari..yet.


- Choose moments when your trades go into instant profitability upon entry. Get in and stay in or quickly get out. Using SL is a 'Guaranteed Loss' Strategy!
- Stay away from markets once your 1st and/or 2nd probe fails on you....your stars are just not aligned, take a break and get your mind off trading for a while.
- 1x, 2x, 3x times starting capital should feel "negligible".... so true! Control your greed/fear and go nuts when the markets are being favorable.
- "Successful trading approach is universal"... I strongly feel successful approach to life in general is also universal. Incorporate the key ingredients of your past successful endeavors into your approach to trading. You will be amazed.
- Belief in your own ability... without that, it will always be a roller coaster ride just like the JPY pairs last couple of weeks
Staying in my lane...
  • #5,846
  • Edited 3:40am Apr 26, 2013 3:10am | Edited 3:40am
Quoting dadadada
Vee (I delete most of my posts within 24 hours) Respected Vee don't know what made you to delete the post showing your trading results. For me it was a motivation and milestone to be achieved. Also did the mistake of not saving the post. Best regards. Roy
I had PMed you the entire post before deleting it. Alternatively, you could subscribe to this thread and receive instant emails whenever there is a new post
Staying in my lane...
  • #5,847
  • Apr 26, 2013 8:36am Apr 26, 2013 8:36am
Good points there VEEFX, I felt the importance of avoiding stop losses from the very beginning. To accomplish that, traders should use money management so to be able to easily withstand significant (50-200 pips) losses. This will give traders ample time on the scale of days to understand whether there's fundamental trend change or just a temporary retracement happening on the pair.
Those that can't, teach, and those that can, do.
Star Ribbean Return This Year: 0.1%
  • #5,848
  • Edited 11:05am Apr 26, 2013 9:02am | Edited 11:05am
Quoting Acolyte
Good points there VEEFX, I felt the importance of avoiding stop losses from the very beginning. To accomplish that, traders should use money management so to be able to easily withstand significant (50-200 pips) losses. This will give traders ample time on the scale of days to understand whether there's fundamental trend change or just a temporary retracement happening on the pair.
Even with money mgmt (i.e. smaller position size), I am personally against letting your trade go south of 100+ pips. I consider "SL to BE" also part of money/risk mgmt and I am no longer using BE at all for each trade. Because of FIFO, I am moving my average position price to BE which has the same effect from a risk mgmt standpoint and give me more room for my trades to survive.

I looked at my stat for last year closely for all BE trades. It was insanely large number of pips (like 6700+ pips) that went in my favor by 20-40 pips and then taken out at BE. Based on this revelation. I now take a small profit once I see a stall after any trade that is less than 50 pips running in profit.

There is no out-of-the-box statistics that allows me to measure my BE trades in tools like Trade Explorer (and I checked with Graeme looong time back and even he does not track his BE trades in his trading statistics and admitted it would be a great idea to track this vital stat). No need to listen to me... looking at your own stats reveal the world of possibilities that you did not know about yourself. I am doing true "No SL", "No SL2BE", no Limit/pending orders and no TP orders as part of my 'training' this year and it has been a greater satisfaction overall.

There are just so many ways to achieve similar goals.

EDIT: Forgot to mention... I extensively use cellphone alerts (near-real time push notifications) in place of SLs, BE, profit and stacking targets. My phone buzzes all the time and more than 50% of my trades are made via my mobile platform. I am used to carrying my blackberry 24x7 so this may not be suitable for everybody's lifestyle. Slippage and spreads are not a concern for me. I view them as necessary costs for the convenience of trading on the go.
Staying in my lane...
  • #5,849
  • Apr 26, 2013 1:24pm Apr 26, 2013 1:24pm
Started reading this thread nearly a year a go, Graeme's work is truely inspirational, and possibly the only thing that makes logical sense.

I've been away, learn and practised a commercial system that is primarily for day trading futures but works in FX as well.

Time to start from the beginning of the thread again to get up to date, and start my millipede!
  • #5,850
  • Apr 26, 2013 2:05pm Apr 26, 2013 2:05pm
Any millipede cronies trading stocks? Honestly finding equities a lot easier compared to FX because of the vast amount of stocks out there. I'm able to be much more selective and consistent with the type of setups I'm trading.
Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.
  • #5,851
  • Apr 26, 2013 6:46pm Apr 26, 2013 6:46pm
Quoting VEEFX
{quote} really? Here's my reasons for trading FX... - there are only 20+ instruments to monitor and track - decent leverage - relatively less regulation - ease of tax reporting - 24x5 trading opportunities - no expense for data feeds from market exchanges - a well defined and frequent economic calendar to follow - volatility (a bit too much for my taste!) - liquidity to go long and short at ease. Unless you are on steroids like Jim Cramer with insane ability to track 3000+ stocks, financial reports, earnings estimates, etc it is not for everyone...
You bring up some good points on the taxes, liquidity, and data fees. I personally am not concerning myself with what the earnings reports say, only when they are actually released.

I used to think that a 24 market is better as well because I was always afraid of gaps, but they aren't that bad once you get a handle on them and if you trade with the monthly trend its not that likely a nasty gap will appear against you. I actually like to see price gap down in an uptrend similar to the first week of 2013 for USDJPY. The logic for me is that the retrace is put in by the gap and price will rally right from the open, fill that gap, and rally the remainder of the day.

When you only have 6.5 hrs a day versus 24 you are actually increasing the probability that you can time your entry to the 5 min chart simply because there are much less 5 min candles you have the option to enter on. To add to that generally the first 15 mins and last 15 mins are the best time to enter positions so you can narrow down the entry window even further.

As for setups I don't look for anything more specific than the monthly, weekly, and daily all pointing in the same direction. I've seen this be described as the "red aura moment" in this thread. I just flip through tickers really quickly. First I'll look at monthly, then weekly, then daily. Either the trend looks clean or it doesn't and that determination should only take a minute maximum.

Care to share some of your equity positions? I'd be interested to take a look.
Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.
  • #5,852
  • Apr 27, 2013 1:12pm Apr 27, 2013 1:12pm
Great thread, inspiring. I am looking into adding really long term trades to my approach.
  • #5,853
  • May 3, 2013 9:05pm May 3, 2013 9:05pm
Gotta share the love here too, another great man who shared knowledge which made me understand price action like I never thought I could. So many gems in his writing.
NineKaye
  • #5,854
  • May 3, 2013 11:32pm May 3, 2013 11:32pm
To VEEFX or anyone who trades this method:

what is a good broker that allows us to choose which legs to close?
I use OANDA and they require a FIFO of positions of same units, which means i need to close the earliest entry. And they cant hedge unless I trade diff accounts on OANDA.
author of kissforextrading dot com
  • #5,855
  • May 7, 2013 11:15am May 7, 2013 11:15am
Quoting vaevictis
To VEEFX or anyone who trades this method: what is a good broker that allows us to choose which legs to close? I use OANDA and they require a FIFO of positions of same units, which means i need to close the earliest entry. And they cant hedge unless I trade diff accounts on OANDA.
IBFX and AAAFX.
If you are a US citizen, hedging is not allowed, however, you can open second account for that.
True knowledge is knowing that you know nothing. Socrates.
  • #5,856
  • May 7, 2013 11:29am May 7, 2013 11:29am
Friends and colleges!
For over a year I am using to some minor extend millipede method for trading and I have to say it shows much better results than anything I've tried before.
I am still struggling with issues of closing profitable positions early. But I see it as my own problem and not the method's con.

Anyways, the reason I am writing to you today because I think I found one life trader who follow this method to the point.
I was browsing Zulutrade traders and found this guy who is currently holding 75.000+ pips in unrealised profit; primarily in the JPY pairs. However, it is a fact that this trader is doing exactly what millipede is all about. Interestingly, yesterday his UPL was about 88.000. I will not be surprised if next week his UPL will be over 100.000.
I wonder who that trader is.

Check this out if you want to see for yourself.
AAA810864F
Open the link, scroll down and then click on "Open Positions"
True knowledge is knowing that you know nothing. Socrates.
  • #5,857
  • May 7, 2013 11:39am May 7, 2013 11:39am
Thanks for sharing this millipede strategy pipEasy.

Just a general question: while other strategies are aimed at scalping and yours in complete contrast on taking a lot of pips over a long term, it just seems to me that all even modestly successful strategies one way or the other eventually end up taking ~10pips/day/successful trade? e.g. another strategy may use a completely different methodology and take 50 pips in a week, while the millipede takes 3,000 pips in a year - end result being approx. the same? Does it then really matter which is used?

Personally I like this millipede strategy simply because it requires patience and very little minute to minute chart-gazing.
  • #5,858
  • May 7, 2013 5:58pm May 7, 2013 5:58pm
Another question:

Understand that followers of this strat use a fix fractional lot size for every position.

I personally practice a %R risk MM.

What I want to know is how big is your fixed fractional lot size in terms of %R risk per trade? for example, how much % of your account balance is risked on average, per position?
author of kissforextrading dot com
  • #5,859
  • Edited 9:10pm May 7, 2013 8:50pm | Edited 9:10pm
Quoting vaevictis
What I want to know is how big is your fixed fractional lot size in terms of %R risk per trade? for example, how much % of your account balance is risked on average, per position?
Risk and money management is very personal business.
Example:
To open a single position I use 0.01 lot for every $1000 of the balance. I'm US resident, therefore, to open EURUSD 0.01 lot I use $26 of my balance (50:1 margin),or 2.6%.
General rule - combined used margin should not exceed 20% of the balance. Not because I am afraid of the price moving fast against me; for that I have stop-losses, and every SL for every position in a trade is either already moved to BE or still at risk. I try to keep 80% available because I like to keep my powder dry and ready in case I need to open positions aggressively (case may be a major event like war , earthquake, CB intervention, etc.). If I have a combined position margin of which approaches 20% I move stop-losses from BE to lock in some profit. thus making sure that my equity will be higher if stopped.

Risk depends on the grid-step size.
If I open positions every 50 pips, risk is 100 ($10 potential loss) per position.
If I open positions every 40 pips, risk is 80 ($8 potential loss) per position.
If I open positions every 10 pips, risk is 20 ($2 potential loss) per position.

Usually, I try to keep two closest to the price positions at risk, others (older and farther from the price) positions are locked at BE or BE+swap.

But that, like I said, is very personal. Which means it came from my understanding of what I (personally) am comfortable with.
If you are not comfortable losing 100pips per position, then don't use 100.
True knowledge is knowing that you know nothing. Socrates.
  • #5,860
  • May 7, 2013 9:15pm May 7, 2013 9:15pm
Appreciate your help Sarkel.
It is interesting because in order to trade TS method at the beginning, one has to keep taking trades and suffer an initial drawdown before being able to diversify their trades.

I'm not sure how comfortable I am to be exposed to a potential drawdown with many positions taking 2.6% risk per trade, while in the meantime I have to open and hold more positions for the long term.

The parameter that concerns me is the initial drawdown period compared to initial lot size and the potential payoff. Looking for someone who has been doing this method for a long time to give their input..
author of kissforextrading dot com
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