Building an equity millipede | Page 357 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Thegman's Journal (Equity Millipede Concept) 102 replies

Trading an Equity Millipede 23 replies

Equity millipede & Flying Buddha trading journal 9 replies

Build an Equity Millipede with the filtered Flying Buddha 171 replies

Application Development - Journal of Building an equity millipede 14 replies

Attachments: Building an equity millipede
Exit Attachments

Building an equity millipede

  • #7,121
  • Dec 1, 2015 8:42am Dec 1, 2015 8:42am
Quoting thokthok
{quote} each position of a currency pair will have different entry point so you cannot manage it using one position.
Yes, but I was talking about a net position with your broker.

But a well kept spread sheet can track every position just the way you want it. So you could have shorted 5 lots every day for the last week as well as bought 2 everyday (same market) and then close them out on your spreadsheet however you want. The net position of all the trades on your spreadsheet will be exactly the same (if you net them out) as the net position held at a broker. But whereas the broker's statement might say net long 15 lots your spreadsheet would show 25 longs at different prices and dates and 10 shorts with the same (or different to that, again it's up to you but however you do it the net position will be the same as your broker's).

Using a well kept spreadsheet you can also play around with profits and losses, keeping some or all of them on/off etc. The spreadsheet adds some real flexibility to your trading (or at how you look at your trading) over the simple net position your broker will show.


Doing it the above way will also help keep costs down re swaps versus a broker who allows hedging.
Road To Wisdom? To err and err and err again, but less and less and less...
  • #7,122
  • Dec 1, 2015 9:10am Dec 1, 2015 9:10am
Quoting Atokys
People approach the idea of pyramiding lured by a few well chosen examples. Adding to winning trades may be appealing because it appears less risky but this is deceptive. You are still concentrating your risk into one instrument, there is no way around this fact. There may be technical reasons for pyramiding (or scaling-in as some call it) but I personally have never found a use for it within a system. This is because standard trend-following systems already tend to over-expose profits during extremely volatile trends thus requiring a scaling out...
I've found that (at least for me) scale winning trades is more difficult and frustrating than scaling winners-to-be. Also the psychological factor punches you harder. It is no the same to accept that you are wrong, swallow the loss and move on than having a winning position that becomes an averaged loser because you screwed it adding another trade that went bust as conditions changed. Maybe it is a matter of fine tuning the technique but it is not for me at the moment.
  • #7,123
  • Dec 1, 2015 9:12am Dec 1, 2015 9:12am
Quoting fonx
Hi folks, sorry to interrupt, just want to contribute with my 2 cents. I'm not a fortune maker but I've survived for a bit. I'm still a rookie, so you don't have to agree with my words. If you don't just put your points, simply don't be too hard on me. These are some things I've learned after many, many hours (I think I started playing with forex back in 2011): Regards
Please feel free, your words have been very informative and well explained. In retrospect new traders to this method are just trying to build surviving legs and go pass the psychological part of 100's of break-even trades and losses. I found out that the timing and research is more important as you don't want to waste time and resources on pairs that will eventually fail.
  • #7,124
  • Dec 1, 2015 10:33am Dec 1, 2015 10:33am
Quoting Atokys
People approach the idea of pyramiding lured by a few well chosen examples. Adding to winning trades may be appealing because it appears less risky but this is deceptive. You are still concentrating your risk into one instrument, there is no way around this fact. There may be technical reasons for pyramiding (or scaling-in as some call it) but I personally have never found a use for it within a system. This is because standard trend-following systems already tend to over-expose profits during extremely volatile trends thus requiring a scaling out...
You're right about pyramiding. Sounds wonderful on paper, but like almost everything in trading, hard to put into profitable action.

Also proves that G's method is as much about psychology as anything, if not more so. For example, do you have the right mental attitude to always try to pyramid and then be prepared after those positions have built up great profits to see each trade get picked off back at unchanged via a deep retracement against the trend? Then, get back on the trend again with multiple positions before the same thing happens and so on till you hit the big trade like short Euro about this time last year.

The more you look into G's method the more you'll see that it's a bit feast and famine. Long periods of little or no food (small losses/break evens), then a sudden burst of tonnes of the stuff, far too much to eat. If you can handle that, and many can, this is a good method but still requires loads of work to get it working properly. But if not, if you like more regular profits (but probably smaller), this strategy like all trend following ones is perhaps not for you.

As others have said, to really get the best out of this method you should be a solid short term trader (knowing when to get in with small risk etc) otherwise you're going to piss so much money away even the bigger profits when they come might not be enough to pay for all the smaller losses. But then if you're a solid short term trader, why go long term as it would probably be far more profitable to play the short term moves day in day out.
Road To Wisdom? To err and err and err again, but less and less and less...
  • #7,125
  • Edited 12:34am Dec 2, 2015 12:01am | Edited 12:34am
@calculus

interesting. got your point.

but then again, let me argue from the other end for the sake of it.

may be you are looking too closely. dont be too late to close a bundle if trend changes. also, swap really becomes an issue when too much leverage is used. a 2% swap will become 20%, when you use just 1:10 leverage.

this is pipeasy opinion.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 94 KB
  • #7,126
  • Dec 2, 2015 3:22am Dec 2, 2015 3:22am
Thok, it's all good discussion. There is no right or wrong way to play. Whatever one does is the right way for them etc.

However, I have a problem with your quote "dont be too late to close a bundle if trend changes".

I agree, but it's hard to know beforehand if being too late or too early is the right thing to do. Sometimes being early is right, sometimes late (both with hindsight).

When we realise the trend has changed price can be several hundred ticks off the high or low point. Better in my opinion to try to judge the trend move and cover into any parabolic type move which often happens at the end of the bigger moves. Maybe even start to go against the trend as well with opposite trades.
Road To Wisdom? To err and err and err again, but less and less and less...
  • #7,127
  • Edited 4:35am Dec 2, 2015 3:58am | Edited 4:35am
The Milipede method has positive things, although it has things that at least are not for me. For instance on thing that is not for me is that it relies on finding good entry points with tight stops. I think I remember that G said that he uses 30pip stops sometimes. I think that to use this kind kind of small stops it's not possible to use "set and forget" approach checking the charts once a day. Not possible unless you monitor the market in an intraday manner. I have a job and I can't. Besides you have to be very skilled to identify the spot, and maybe I'm not that skilled.

Quoting Calculus
Thok, it's all good discussion. There is no right or wrong way to play. Whatever one does is the right way for them etc. However, I have a problem with your quote "dont be too late to close a bundle if trend changes". I agree, but it's hard to know beforehand if being too late or too early is the right thing to do. Sometimes being early is right, sometimes late (both with hindsight). When we realize the trend has changed price can be several hundred ticks off the high or low point. Better in my opinion to try to judge the trend move and cover into...
I agree with you here. A corrective movement spans from 1/3 to 2/3 of the main move in most cases, and without stops can be painful to see earnings being wiped out. My approach is not looking for a trend change, as I think that it is a very lagging check point :S. My approach is to try to spot goals even before opening a position. For instance if I buy the dip in an uptrend my goal will be around the previous high. Sometimes I continue with the breakthrough of the resistance, sometimes not, and that depends on how confident I am about other factors like fundamentals. You know that when a resistance is broken, then there is a test in most cases and the test can fail (breakout pullback) or not... in a nutshell volatility. Trading breakouts is more difficult in my experience, but I'm sure many people do it successfully.

But I agree with the core of this method, which is long term perspective. But that needs patience. I can have positions open for many weeks (as long as I'm not proved wrong) and that is not even long term, it is medium term!
  • #7,128
  • Dec 2, 2015 5:58am Dec 2, 2015 5:58am
Quoting fonx
A corrective movement spans from 1/3 to 2/3 of the main move in most cases, and without stops can be painful to see earnings being wiped out.
I reckon it wont be wiped out.
You will have other 'legs' in the direction of retracement.
That will insure that your profit remain safe (not taking in to account swap).

Then if trend continues in its original direction, you close the trades you opened in the direction of the retracement for a profit and let the original trades run.
  • #7,129
  • Dec 3, 2015 9:13am Dec 3, 2015 9:13am
agree with Calculus

might be no right or wrong way, but there is always a method and a better method, and this one seems not the latter.

Calculus has put it well already:

this is a dilemma that doesn't fit logic.

you need an entry skill that carries a statistically significant edge (60%+, say). but when you have that, why the heck do you wait for weeks/months to diversify/take profit?

one real profitable trader understands this easily.

if you are not profitable, you still can fig this out by playing numbers in a excel sheet.

real profitable traders won't count on this as main winnings, though this way also bring in profits (in a low-efficiency manner).

on the other hand, coin-flip traders (with no edge) do easily run into some big wins now and then, lol............

Quoting Calculus
Thok, it's all good discussion. There is no right or wrong way to play. Whatever one does is the right way for them etc.
  • #7,130
  • Dec 3, 2015 4:32pm Dec 3, 2015 4:32pm
Quoting thokthok
@calculus interesting. got your point. but then again, let me argue from the other end for the sake of it. may be you are looking too closely. dont be too late to close a bundle if trend changes. also, swap really becomes an issue when too much leverage is used. a 2% swap will become 20%, when you use just 1:10 leverage. this is pipeasy opinion. {image}
from what book is that?
  • #7,131
  • Dec 4, 2015 12:13am Dec 4, 2015 12:13am
Quoting vladutz112
{quote} from what book is that?
This is the PDF created from this thread original author. You can download it from thread's attachments.
  • #7,132
  • Dec 4, 2015 4:42pm Dec 4, 2015 4:42pm
Quoting Chorlton
{quote} When I was following him on this thread he was using FXCM
Quoting thokthok
{quote} Oh, I dont think they are wise choice any more. They stock is down to like $6 from $180s.
This topic came up in the FXCM discussion thread. You can see my response, and please feel free to post any questions for me there: http://www.forexfactory.com/showthre...42#post8621642
  • #7,133
  • Dec 5, 2015 1:52pm Dec 5, 2015 1:52pm
Quoting charvo
agree with Calculus might be no right or wrong way, but there is always a method and a better method, and this one seems not the latter. Calculus has put it well already: this is a dilemma that doesn't fit logic. you need an entry skill that carries a statistically significant edge (60%+, say). but when you have that, why the heck do you wait for weeks/months to diversify/take profit? one real profitable trader understands this easily. if you are not profitable, you still can fig this out by playing numbers in a excel sheet. real profitable traders...
You don't need a good entry with greater than 60% accuracy.

In fact I think all available evidence suggests that R multiple is a lot more important than entry.
  • #7,134
  • Dec 7, 2015 9:25pm Dec 7, 2015 9:25pm
Dear pipEASY.
Thank you for helping me see a bigger picture. I have started using the Daily & Weekly charts and it is easier. On the Daily charts I have caught the start of the move on: EU/AU, EU/CA, EU/BP, EU/JP, EU/US. At first I got to close with my
first stop but because everything still looked OK I re-entered so far on three of them and the rest are pending. I am trying to make the market come to me. The only reason I am still tense is I used to trade smaller TF and this way of trading is still new to me. At a .01/pip I show a profit working on $20.00 so far. Nice start. Have not moved my stop so far but I will so I can sit back and just watch, come to Papa!

May the pips be with you!
  • #7,135
  • Dec 11, 2015 12:27am Dec 11, 2015 12:27am
Guys, Graeme mentioned that he was working on a formal book. Does anyone knows if that book has been published or not?

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 37 KB
  • #7,136
  • Dec 11, 2015 3:46pm Dec 11, 2015 3:46pm
is thismethod still working please?
DO NOT PM ME FOR MY METHOD OR ANYTHING PLEASE, I WOULDN'T RESPOND
  • #7,137
  • Dec 11, 2015 10:29pm Dec 11, 2015 10:29pm
Quoting Tom29
is thismethod still working please?
Yes. But you must be wait for a long period to get the result.
  • #7,138
  • Dec 14, 2015 5:18pm Dec 14, 2015 5:18pm
Hello,

pipEASY traded many time frames including 5min time frame and he wrote that he doesn't care about spreads, but for example, how can you trade on 5min chart with 2 spread? You just get filled @ so bad price.

regards,
  • #7,139
  • Dec 14, 2015 10:28pm Dec 14, 2015 10:28pm
Quoting dreamt1me
Hello, pipEASY traded many time frames including 5min time frame and he wrote that he doesn't care about spreads, but for example, how can you trade on 5min chart with 2 spread? You just get filled @ so bad price. regards,
Hi,

If you want to trade, begin with 4h timeframe. Study the flying buddha in this thread and try to apply it. Re-read it you can understand it
  • #7,140
  • Dec 15, 2015 2:36am Dec 15, 2015 2:36am
Well, ye i understand what you mean, but RR is much better if i trade through 5min charts.
4 traders viewing now