Attachments: Building an equity millipede

Building an equity millipede

#6,081
Sep 30, 2013 11:29am Sep 30, 2013 11:29am

Jaquemate
Joined Nov 2010 | Status: Trader | 498 Posts

Sorry mate i cant upload files from this computer. I dont know the reason.
I will attemp this night.
Regards.

That which you give to others, life will return it in spades

#6,082
Sep 30, 2013 12:54pm Sep 30, 2013 12:54pm

timos
Joined Sep 2012 | Status: Trader | 1,056 Posts

Quoting Jaquemate

Disliked

Hi Timos: I see you diversificate in USDJPY leaving a +-140 pips gap between buy and sell positions. Can i ask you what criteria are you using to diversificate?. May be 140 pips is so small gap for diversificate. The problem of diversificate is when do it. One very very SIMPLE and VISUAL way to diversificate is using pivot lines. Depending of target you can use monthly or weekly pivots. At chart attached horizontal black lines are weekly pivots. Really is very easy to follow the rules. Regards.

Ignored

Hi Pal,There was no reson,i saw a setup to buy and i took it,i do the same when i see sell.That's all,i take as many as possible low risk entries and let them fight.
Tim

#6,083
Sep 30, 2013 2:41pm Sep 30, 2013 2:41pm

Jaquemate
Joined Nov 2010 | Status: Trader | 498 Posts

Quoting Jaquemate

Disliked

Hi Timos: I see you diversificate in USDJPY leaving a +-140 pips gap between buy and sell positions. Can i ask you what criteria are you using to diversificate?. May be 140 pips is so small gap for diversificate. The problem of diversificate is when do it. One very very SIMPLE and VISUAL way to diversificate is using pivot lines. Depending of target you can use monthly or weekly pivots. At chart attached horizontal black lines are weekly pivots. Really is very easy to follow the rules. Regards.

Ignored

Here is another chart. When price close below weekly pivot one decision is to take profit closing buy positions. Another decision is leave open buy positions and diversificate taking only sell positions.
In this scenario, finally price continue up and buy positions will continuing open untill next weekly pivot or monthly resistence.
Regards.

Attached Image (click to enlarge)

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That which you give to others, life will return it in spades

#6,084
Oct 2, 2013 12:33pm Oct 2, 2013 12:33pm

timos
Joined Sep 2012 | Status: Trader | 1,056 Posts

Quoting Jaquemate

Disliked

{quote} Here is another chart. When price close below weekly pivot one decision is to take profit closing buy positions. Another decision is leave open buy positions and diversificate taking only sell positions. In this scenario, finally price continue up and buy positions will continuing open untill next weekly pivot or monthly resistence. Regards. {image}

Ignored

Hi pal,to my opinion,anything else more than price,is a lagin indicator.
Let me ask you something,if you remove ma's,pivots and any kind of indicator,will that prevent the price from moving up or down?

#6,085
Oct 2, 2013 11:13pm Oct 2, 2013 11:13pm

zusch
| Joined Feb 2011 | Status: Trade the hot hand. | 668 Posts

Hello Millipede'ers! Been a while since I last dropped into the thread that taught me how to trade. Last time I posted here I was talking about how I found stocks to be much easier to trade using this method. I haven't taken a FX trade in a 3-4 months and really haven't thought twice about it. Just flicked through 20+ pairs and there really hasn't been anything trending except for GBPUSD and AUDUSD. The great USDJPY trend (the only pair I currently follow on a weekly basis) has been on pause the last 4 months.

Trading stocks gives you so much more freedom in choosing the types of setups you want to trade. Everyday you can go out and find a stock that is setup just like USDJPY was in Nov/Dec '12. Even in the choppy S&P environment we've been in last few months, you can still find super strong trending stocks. At first I was wide eyed at all the possible stocks I could trade, but with experience that has changed. Sometimes just turning on CNBC and looking up a ticker that all the talking heads are all giggity about is a great way to find a winner (TSLA anyone?), but of course you have to follow your own rules regarding entries.

Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.

#6,086
Oct 3, 2013 12:11am Oct 3, 2013 12:11am

Silat50
| Joined Oct 2012 | Status: Trader | 523 Posts

Quoting zusch

Disliked

Hello Millipede'ers! Been a while since I last dropped into the thread that taught me how to trade. Last time I posted here I was talking about how I found stocks to be much easier to trade using this method. I haven't taken a FX trade in a 3-4 months and really haven't thought twice about it. Just flicked through 20+ pairs and there really hasn't been anything trending except for GBPUSD and AUDUSD. The great USDJPY trend (the only pair I currently follow on a weekly basis) has been on pause the last 4 months. Trading stocks gives you so much more...

Ignored

zusch, You are 110% right imho. If I had the bankroll to gamble with, id be nuts to play forex and limit myself to like 12-15 decent pairs when I can have thousands of stocks that trade over a million shares every single day, and unlike our precious EUR/USD WHO AFTER 3 YRS IS ABOUT IN THE SAME PLACE IT WAS BEFORE(ALONG WITH 1/2 THE OthER PAIRS) STOCKS EITHER TAKE OFF AND NEVER LOOK BACK, OR...THEY GO SO LOW THEY GET THROWN OFF THE NAZDAQ AND EITHER Wind up on the pinks or go broke. Where in forex can you buy a well known, "everybody knows this company stock" like Apple and buy in for 30 bucks and 3 years later its at 600. Similar for netflix. The best buy and hold stock pickers will destroy the best forex traders any day. Yet, I looooove forex. Im addicted to it. And if the darn govt didnt make a mistake on my tax return my accountant only made worse so im afraid theyd freeze my account, id be maing a fortune in todays market climate. Wanna feel worse forex players. My baby sister(of 47) who never listened to a word I said all her life and in fact now we dont even talk because of it, when my mom doed I said "sis, buy a boatload of netflix and CSTR(coinstar) as well as 2 cloud computing stocks with the money mom left us and put my money with yours so i cant get mine confiscated. "No i dont want to get mixed up in any schemes" she said. So not only would my ssiter have turned about 150k into over 500k in 3 yrs, but even though she hates risk, hates the stockmarket and wouldnt paly it if you gave her half the money, she is making over 20% a year last 3 years in her 401k, and its gotta be fat,fat fat by now, and she must be saying to herself, good thing I dont play stocks or listen to my brother! She doesnt even know(barely) that her mutuel funds in her 401k buy stocks!!!! And my picks, shed be making double that or more each year easy.

Arent some of us getting a little upset that our neighbors and friends who don't share our passions are making more in their silly 401k's and know nothing about finance than we do with all our book reading, software, courses we bought and years of study? Whats wrong with this picture?

And my opinion....most guys on this board either have demo accounts and the ones that are live dont even have more than a couple of thousand in the whole forex account. They too keep their big money in stocks or funds. Even the winners here dont trust Forex enough. The average guy here has like a $500 account and plays for micro pips and couldn't make a living doing this if her doubled his account every year for 10 years!!!!!!

#6,087
Oct 3, 2013 12:15am Oct 3, 2013 12:15am

Silat50
| Joined Oct 2012 | Status: Trader | 523 Posts

Please find me just 3 traders here that make just 10% a year in their acct with donchian channels if what you say is true. I threw it out so long ago I forgot what one looks like but I am always open, yes open...to re-visit new/old things if they work. So...please show me, Jaquemate. Or anyone.

#6,088
Oct 3, 2013 7:17am Oct 3, 2013 7:17am

Jaquemate
Joined Nov 2010 | Status: Trader | 498 Posts

Quoting timos

Disliked

{quote} Hi pal,to my opinion,anything else more than price,is a lagin indicator. Let me ask you something,if you remove ma's,pivots and any kind of indicator,will that prevent the price from moving up or down?

Ignored

Hi Timos:

Sorry i think there is no feedback here.
I dont trade with pp.
PP is only an easy visual method to determine the trade direction.
A dozen times, Graeme talked about this. He used some rules how these "When a weekly candle close above last down candle then trend is up and viceversa". or the next "Above daily open price only buy and viceversa" or "You can use 5/10 ema crosses in a weekly chart to determine trend direction"..... or "when price is above 200 ema then only buy and viceversa".
I know all i saying are not his exactly words sure, but most important is the idea.
When i talk about monthly/weekly pivot points im talking about the same concept. Monthly pivot point shows the way. When 1h or 4h candle close above monthly pivot point, then i only take buy orders and viceversa and positions normally are still open untill achieve monthly supports/resistence. Its an evidence.

with weekly pivots point do the same, but i use for diversicate. I dont wait how Graeme to achieve 1000 or more pips to diversificate cause i dont need it.

If i take say 10 buy positions still open agree monthly pivot point and weekly pivot point week to week will continue above monthly pivot point its an evidence that trend will continue UP. Then Why close positions?. And When close positions?.

S.I.M.P.L.E. When price go down monthly pivot.... But imagine that a 1h or better 4h candle close below weekly pivot but price is above monthly pivot. then What i do?. I dont close buy positions. I diversificate. I start looking for sell oportunities.

this is the concept.
In the chart im showing my diversificate when price go below weekly pp and up trend from monthly pivot achieve around 500 pips. For me is good. Now, in GBPUSD trend achieve around 700 pips and buy positions are still open.

Regards

Normally price respect, touch and retest levels, round numbers, daily open price, pivot points. And this is not cuestionable. Theese are support/resistence zones.

For me trade with pp

That which you give to others, life will return it in spades

#6,089
Oct 3, 2013 7:31am Oct 3, 2013 7:31am

Calculus
Joined Apr 2011 | Status: Trader | 583 Posts

Quoting Silat50

Disliked

Please find me just 3 traders here that make just 10% a year in their acct with donchian channels if what you say is true. I threw it out so long ago I forgot what one looks like but I am always open, yes open...to re-visit new/old things if they work. So...please show me, Jaquemate. Or anyone.

Ignored

Nobody is interested in Donchain. It was mentioned as a good example of a trading strategy that can print money IF the market goes up in a straight line, such as Cable over the last few months. But for every one of these such moves there are 10 messy/tricky ones.

Whether people make money with G's method or not will not be determined by such straight line moves, rather it will all depend on how much money is lost on the trades that don't go right. So just like good sports, worry about defensive play first, then scoring goals/points later.

(Otherwise you'll be just like Spurs under Christian Gross - the team always used to score at least 3 goals a game but then normally let in 4...)

Road To Wisdom? To err and err and err again, but less and less and less...

#6,090
Oct 3, 2013 7:34am Oct 3, 2013 7:34am

Jaquemate
Joined Nov 2010 | Status: Trader | 498 Posts

Quoting Silat50

Disliked

Please find me just 3 traders here that make just 10% a year in their acct with donchian channels if what you say is true. I threw it out so long ago I forgot what one looks like but I am always open, yes open...to re-visit new/old things if they work. So...please show me, Jaquemate. Or anyone.

Ignored

Hi Silat.

I dont knwo why you mention me. I dont use donchian and i dont like donchian.... And 10% annual is nothing for a good trader mate. I dont want offense nobody but a trader that stay infront pc 8-12 hours day by day for a 10-20% annual ........ is loosing his time ..... Humbly i think.

Regards.

That which you give to others, life will return it in spades

#6,091
Oct 3, 2013 7:42am Oct 3, 2013 7:42am

timos
Joined Sep 2012 | Status: Trader | 1,056 Posts

Quoting Jaquemate

Disliked

{quote} Hi Timos: Sorry i think there is no feedback here. I dont trade with pp. PP is only an easy visual method to determine the trade direction. A dozen times, Graeme talked about this. He used some rules how these "When a weekly candle close above last down candle then trend is up and viceversa". or the next "Above daily open price only buy and viceversa" or "You can use 5/10 ema crosses in a weekly chart to determine trend direction"..... or "when price is above 200 ema then only buy and viceversa". I know all i saying are not his exactly...

Ignored

I agree with your view.Everyone has it own view.I try to be early in the trend.In the same trend that you're talking about gbp usd,i have 1100 pips leg
Tim

#6,092
Edited 2:29pm Oct 4, 2013 1:21am | Edited 2:29pm

VEEFX
Joined Jun 2006 | Status: Adios! | 3,377 Posts

Here's the best explanation of how economy works !!!!!

How The Economic Machine Works by Ray Dalio

Inserted Video

EDIT: The 3 rules of thumb listed at the end is GOLD MINE !!! Most of us focus only on the first two but the last rule on PRODUCTIVITY has profound impact.

Rule1... debt >< margin
Rule2... income >< profit/reward
Rule3... productivity >< ??? (Think about this!!!)

Staying in my lane...

#6,093
Oct 10, 2013 3:08am Oct 10, 2013 3:08am

Bullet
| Joined Aug 2013 | Status: Trader | 78 Posts

Interesting thread. Looking at some of the recent posts I think the naysayers simply didn't read the thread or didn't understand it. Of course you are going to be stopped out at b/e a lot, for months on end in some pairs, this was warned about early on. Also entering on the 5 min chart will magnify this. You are not looking to make a quick profit here you are looking to get into weekly/monthly trends that are everywhere. If you can't handle a few months of range and are trying to get in on anything below the daily you will likely not be able to trade this. That is my opinion feel free to comment.

#6,094
Oct 10, 2013 3:19am Oct 10, 2013 3:19am

Barbossa
| Joined Aug 2011 | Status: Trader | 233 Posts

Well, nobody said you should keep entering off the M5 chart during a few months long range. Just avoiding the market can work wonders. Granted, you need to participate in order to expect any growth, but you don't need to participate all the time. G stated that very early in the thread - get some positions in the market, "then preferably stop adding". This can be easily overlooked, but it is actually an important point.

#6,095
Oct 10, 2013 9:59am Oct 10, 2013 9:59am

VEEFX
Joined Jun 2006 | Status: Adios! | 3,377 Posts

Quoting Barbossa

Disliked

Well, nobody said you should keep entering off the M5 chart during a few months long range. Just avoiding the maYep...rket can workwonders. Granted, you need to participate in order to expect any growth, but you don't need to participate all the time. G stated that very early in the thread - get some positions in the market, "then preferably stop adding". This can be easily overlooked, but it is actually an important point.

Ignored

yep...in other words, space out your entries by implementing the rule of only one or two max losses per day on a given pair....and select no more than 3 or 4 pairs for your weekly hindsight.

Staying in my lane...

#6,096
Oct 10, 2013 9:25pm Oct 10, 2013 9:25pm

zusch
| Joined Feb 2011 | Status: Trade the hot hand. | 668 Posts

Wanted to share my USDJPY daily chart. Very strong move. Maybe the start of a breakout of this coiled up range the pair has been trading in the past 4 months.

I always follow price action and not predict, but just for fun -- I'd say this turns into a weekly bullish engulfing candle...then later during this month we break last month's high and form a monthly bullish engulfing candle.

Attached Image (click to enlarge)

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Name: 10.10.13 USDJPY.png
Size: 27 KB

Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.

#6,097
Oct 11, 2013 2:39am Oct 11, 2013 2:39am

Barbossa
| Joined Aug 2011 | Status: Trader | 233 Posts

Quoting VEEFX

Disliked

{quote} yep...in other words, space out your entries by implementing the rule of only one or two max losses per day on a given pair....and select no more than 3 or 4 pairs for your weekly hindsight.

Ignored

That's a way to do it, yeah. Currently I'm playing with a different approach. I search for certain "windows of opportunity" and only seek entries while they last. As long as they do not happen too often, I'm ending up with "clusters" of tightly packed positions, which are spaced out nicely on the bigger scale. In the end, the results are similar in terms of average losses per day. And as long as this remains so AND growth is allowed, every approach can work. That's probably the most beautiful insight I got from this thread. I really regret coming around only after pipEASY has left. I wish I could thank him in person for it.

#6,098
Oct 15, 2013 4:02am Oct 15, 2013 4:02am

Jaquemate
Joined Nov 2010 | Status: Trader | 498 Posts

Hi all:
I want to post at this thread cause think that Im showing is based at Graemes concept. And think is not necessary to open a new thread for it.
In his post Graeme repeat a lot of times that he is showing can be resumed in a few pages. This is true. His concepts are very simple to understand but no all traders are ready to follow it.
He is transmitting a basic idea about how he understands market. From this perspective, every trader must adapt their trading style looking for the “ONE THING “. The one thing is no a predefined set of rules. Its more simple. It’s the hedge that can change your trading in the future. This is for me the only one holy grail. There is no another secret in market for me.
When a trader found this ONE THING the next step is to do it a million times to perfect.
Read the firsts 10-30 first pages of this thread. No need more. I recommended all readers read only Graeme post to don’t confuse and remove from the Graemes concept.
Believe mates, I honestly think that this thread is the best I read ever. Graeme don’t show a system, style or trading method is so much. Who think this is in an error.
He don’t talk about long or short term. He says, and all can see it, that price do the same in all time frames and he show a simple exercise to do at a 5m chart for practice and probe this undeniable TRUE. He is a long term trader cause he has a huge control of his emotions and he can hold a dozen positions open from months and no all traders are ready for to do this.
My experience says I no need to do a long term trader, Repeat Im talking about me. Too I don’t lose my time trading 5m chart with more stress and more time in front of computer.
This is a game of chance and a trader only have to do only one thing., put the odds to your favor maximizing the winning and minimizing the losing.
Graeme talk about concepts how to learn WHEN TO TRADE and WHEN NOT TO TRADE. Traders don’t understand this I think.
Really is very easy when you look a chart to know when or when not to trade. REALLY IS TRUE.
Look at daily open price, weekly open price, EMAs, Weekly & Monthly pivots. Information is in front you. No need indicators. Only see and act.
Trading is incredibly simple and this idea is the most most difficult to understand.
Regards

That which you give to others, life will return it in spades

#6,099
Oct 16, 2013 7:26am Oct 16, 2013 7:26am

Jaquemate
Joined Nov 2010 | Status: Trader | 498 Posts

Hi all:

A receive a private mesagge from a mate asking me about how i use pivot points.
I must clarify one more time that i use weekly & monthly pivots to determine trend direction and to diversify. But obviously its only a way. For me is a good way. Similarly you can use daily open, weekly open, 200 EMA......

In chart attached we have a 400 pips up trend with a range period.
Yellow line is Monthly pivot.
Black line is weekly pivot.
Red & Blue lines are weekly r1 & s1.
Green lines are monthly r1 & r2.
Little orange red lines are daily open Price.
This chart is based on Graemes templates and is easy to follow.

Look at the chart and think.
After read Graemes post and understand his concepts.... I ask.
Nobody can say me when to trade and when not to trade in this chart?.

You can fail, yes, you can losse yes. one... ten... strike loss. Ok. But to short-medium-long term you win sure looking for BUY oportunities in this chart.
Really we need indicators?.

Attached Image (click to enlarge)