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Building an equity millipede

  • #7,161
  • May 26, 2016 1:22pm May 26, 2016 1:22pm
Quoting zusch
Sad to see not much activity in this thread, but I wanted to bring to everyone's attention a monthly bearish engulfing candle in $EURUSD about to close after a year of choppy movement. Could be the start of another major leg down. {image}
I agree. Not because of what I see on the chart but because of diverging monetary policies. The U.S. will probably continue to raise interest rates and create more demand for american dollars. I think that EUR/USD could go to 1.05. I already have 4 open positions with a total of more than 600 pips profit.

I'm also very bullish on USD/JPY. I have read that it could go to 125 in the coming months.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,162
  • May 30, 2016 2:45am May 30, 2016 2:45am
Here are my current trades. A total of more than 2500 pips. How are you doing?
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If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,163
  • May 31, 2016 5:54am May 31, 2016 5:54am
Quoting SmoothTrader
This is a wonderful system. I have been trading it on and off for a couple of years now. There were some fantastic profits made, but it felt as if it lacked more direction. I can across this thread: http://www.forexfactory.com/showthread.php?t=576707 and it re-sparked the interest for me. I would highly recommend reading it. I use a different trigger than he does, but the concepts are all solid. GREEN pips to you Good Sir.
Is it just me or does Dreamliner's thread really bear an uncanny resemblance to this one?
  • #7,164
  • Edited 6:45am May 31, 2016 6:34am | Edited 6:45am
Quoting Barbossa
{quote} Is it just me or does Dreamliner's thread really bear an uncanny resemblance to this one?
Maybe a little but the strategy is very different. He adds to losing positions and have a large stop loss. In the equity millipede strategy you should only add to winning positions and have a tight stop loss. There is no doubt in my mind that the equity millipede strategy is best. Especially if you also look at fundamental factors like interest rates, inflation, wage growth and what the big boys(the banks) say about foreign exchange rates.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,165
  • May 31, 2016 6:53am May 31, 2016 6:53am
Here's the thing - these differences do not matter. You can trade this way or that way and still get great results. Or not. Both "systems" rely on the same basic approach. It is not the technical details that make them or break them. It's something else and curiously there are only clues and hints on it in both threads. I can't say if that's intentional or not. But it does strike me as an oddity.

Moreover, doesn't the structure of the threads feel similar? Lengthy posts, comparing trading to other businesses and a departure of the mentor? There are some differences in writing style, but there are also a lot of similarities. And both posters are quite polite, perhaps unusually so for an Internet forum.
  • #7,166
  • May 31, 2016 7:48am May 31, 2016 7:48am
Quoting Barbossa
Here's the thing - these differences do not matter. You can trade this way or that way and still get great results. Or not. Both "systems" rely on the same basic approach. It is not the technical details that make them or break them. It's something else and curiously there are only clues and hints on it in both threads. I can't say if that's intentional or not. But it does strike me as an oddity. Moreover, doesn't the structure of the threads feel similar? Lengthy posts, comparing trading to other businesses and a departure of the mentor? There...
No the approach isn't the same. There is a very big difference between using large stops and adding to losing positions, and using small stops and adding to winning positions. With the first approach you risk losing a lot when price touches the moving average. With the second approach you will have a lot of small losses and close to break even trades and a few huge winners. I have read many of the posts in the other thread and came to the conclusion that the equity millipede strategy is better and that it can be even better if you take fundamental factors into account before trading.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,167
  • May 31, 2016 8:16am May 31, 2016 8:16am
The underlying principle is "keep losses linear, make profits exponential". While this thread doesn't specifically call the losses "linear", it's the same thing. However, neither fully explains how to do so.

If you're adding up blindly because a bar closed this way instead of that, you're going to fail. Doesn't even matter if your position is in loss or in profit.

If you're blindly taking trades with tight stop losses because of your favorite signal told you so, you're still going to fail.
  • #7,168
  • May 31, 2016 8:22am May 31, 2016 8:22am
Quoting Barbossa
The underlying principle is "keep losses linear, make profits exponential".
That would be true for the equity millipede strategy. With the other strategy you make losses bigger when the price goes against you. Dreamliner has shown that very clearly with the charts that he posted. His strategy is not about minimizing losses but instead about adding to both losing and winning positions until all trades are eventually closed for either a big profit or a big loss. I prefer either a small loss or a big profit
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,169
  • May 31, 2016 8:40am May 31, 2016 8:40am
You keep missing the point.
  • #7,170
  • May 31, 2016 8:53am May 31, 2016 8:53am
Quoting Barbossa
You keep missing the point.
It looks like you think that the underlying principle is the same for both strategies. That is simply not true and I just explained why it isn't true in my last two posts.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,171
  • May 31, 2016 9:08am May 31, 2016 9:08am
Would you care to elaborate

Quoting Barbossa
{quote} Is it just me or does Dreamliner's thread really bear an uncanny resemblance to this one?
Inflation in things we need, Deflation in things we want.
  • #7,172
  • May 31, 2016 9:43am May 31, 2016 9:43am
Quoting Gambler180
{quote} It looks like you think that the underlying principle is the same for both strategies. That is simply not true and I just explained why it isn't true in my last two posts.
You explained why you think the way you do, but like I said, you seem to be missing the point. Especially the point of Dreamliner's thread. It's not about griding, martingaling or other popular money management tricks that don't work. It's about scaling in during a trend. Which is what the equity millipede is about as well. What you nitpick about are minor details that I can bet are of little importance to the persons who started each respective thread.

Quoting Thijs
Would you care to elaborate {quote}
Already did, in my post here. The whole vibe of the thread seemed oddly familiar.
  • #7,173
  • Edited 10:59am May 31, 2016 10:00am | Edited 10:59am
Quoting Barbossa
It's not about griding, martingaling or other popular money management tricks that don't work. It's about scaling in during a trend. Which is what the equity millipede is about as well. What you nitpick about are minor details that I can bet are of little importance to the persons who started each respective thread.
Adding to a losing trade vs closing for a small loss is not a minor detail.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,174
  • Jun 1, 2016 2:24am Jun 1, 2016 2:24am
You keep nitpicking, staring into the technicalities and you fail to see the bigger picture. You should not just add to losing trades blindly, for obvious reasons. But you can do it and still win. Graeme once said he'd enter on the open of a candle and then again on the 50% retrace into the previous. Obviously at the time of the second entry the first one would be in a loss. The critical part isn't about the rules. It's about the management.
  • #7,175
  • Jun 1, 2016 11:00am Jun 1, 2016 11:00am
Anyone else looking to short EUR/GBP?
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If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,176
  • Jun 4, 2016 1:59am Jun 4, 2016 1:59am
Quoting Barbossa
You keep nitpicking, staring into the technicalities and you fail to see the bigger picture. You should not just add to losing trades blindly, for obvious reasons. But you can do it and still win. Graeme once said he'd enter on the open of a candle and then again on the 50% retrace into the previous. Obviously at the time of the second entry the first one would be in a loss. The critical part isn't about the rules. It's about the management.
Adding one position to a losing trade when you see another good trading opportunity vs adding 2, 3, 4, 5, 6 and in some cases even more than that when price goes against you is a big difference. It's a totally different way of managing the trades. Pyramiding when price goes in the right direction vs averaging up or down when price goes against you is not the same and the difference is not a minor detail. If you can't see that then I give up. Good luck with your trading.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,177
  • Jun 4, 2016 2:42am Jun 4, 2016 2:42am
Barbossa I have to agree in principle with you that the nature, objectives, how the thread is written and sentiment used in Dreamliner's thread is very very similar.
Conjecture might lean towards thinking that they are one and the same trader with the latest techniques the current execution of the millipede!!
Gambler180, you seem to be missing what Barbossa is trying to get across - the details of the system are irrelevant, whether its adding to winning positions or averaging in to a position. The important and takeaway points are that the underlying principles of each system are very similar - getting onto trends in whichever way you can and sticking to them. THAT'S the takeaway message of both threads and the underlying basis of both techniques.

I became a successful trader when one of the principles I started doing was copying what the professionals who actually make money in this business do - average in to a position!

Success to all who seek it!
  • #7,178
  • Jun 4, 2016 3:27am Jun 4, 2016 3:27am
Quoting TopTraderDoc
Barbossa I have to agree in principle with you that the nature, objectives, how the thread is written and sentiment used in Dreamliner's thread is very very similar. Conjecture might lean towards thinking that they are one and the same trader with the latest techniques the current execution of the millipede!! Gambler180, you seem to be missing what Barbossa is trying to get across - the details of the system are irrelevant, whether its adding to winning positions or averaging in to a position. The important and takeaway points are that the underlying...
Do whatever works for you. I prefer to have a huge floating profit instead of adding to a losing position creating a large floating loss and waiting for it to turn into a profit.
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #7,179
  • Jun 12, 2016 10:07pm Jun 12, 2016 10:07pm
Last month's engulfing candle in EURUSD offered a near exact 61.8% retrace of May's range. Sellers now in control on Monthly/weekly/daily charts.

As Graeme always said, "look inside the inside of the inside." (post 766)
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Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.
  • #7,180
  • Jun 17, 2016 5:30pm Jun 17, 2016 5:30pm
I'm thinking about buying EUR/USD. It's close to 20 % undervalued.
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If slaughterhouses had glass walls, everyone would be a vegetarian!
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