{quote} Done with USDJPY it went well below 101 As for USDCHF, haven't seen any significant down move yet, seems the swiss central bank if managing to do a good job so far. Would love to see how much longer they'll mange to hold it.
trade safe
- #321
- Jul 12, 2016 3:31am Jul 12, 2016 3:31am
{quote} Quite a nasty DD, short yen pair definitely contributed much to the DD, quite a number of chf trade shorts. Realise chf hasn't gain much despite the rise In gold and eu. Looks like SNB is doing a good job suppression the chf bull. For now. Would be interesting to see how this turns out. Trade safe
These Drawdows have been always happening, and I'm working hard to try to understand when/why they are happening at the time they do.
When you are managing your risks well, these DDs are just part of the game, when there is no risk control (like the attached demo) these DDs could be the end of the game.
From my experience as of the beginning of the year using this strategy, these steep sudden DDs are always followed by strong reversals & eventually new equity highs.
{quote} Yes the DD was real nasty, the Yen move contributed, but the main factor was the GBP strength. These Drawdows have been always happening, and I'm working hard to try to understand when/why they are happening at the time they do. When you are managing your risks well, these DDs are just part of the game, when there is no risk control (like the attached demo) these DDs could be the end of the game. From my experience as of the beginning of the year using this strategy, these steep sudden DDs are always followed by strong reversals & eventually...
{quote} I would love to hear about your research/findings on those subjects. How do you define managing the risk? What are the actions that you can execute to manage risk in those situations, apart from using lower leverage on the first place, hedging and diversification of the pairs traded, when the dd actually happens, what are some other possible suggestions? good luck
I'll just say that basically the actions I take to manage my account after placing the trades are none.
Everything is calculated before I take any trade. Few posts back I mentioned the worst case scenario view I treat each position based on.
This is concerning my main professionally traded account.
Every once in a while when I have free time to give to active trading, I like to pick up on new concepts/method/techniques, and that's how I ended up on FF one day to discuss the TZ concept. That's when I try different money management techniques based on each concept.
For the current system being shared/talked about here, the money management (roughly speaking) constitutes of 1- low leverage per position to allow the position to run in relatively high DD as long as it is still with the trend & satisfies the main entry rules 2- Closing/hedging the position if an opposing signal shows up 3- limit the entries to once per day 4- give priority for diversity rather then the accumulation of the same pair when the chance allows.
& as I have previously mentioned, I am still always in the search/test of different factors & that what the demos &/or small real test accounts are for
- #329
- Jul 14, 2016 6:14am Jul 14, 2016 6:14am
{quote} Yes the DD was real nasty, the Yen move contributed, but the main factor was the GBP strength. These Drawdows have been always happening, and I'm working hard to try to understand when/why they are happening at the time they do. When you are managing your risks well, these DDs are just part of the game, when there is no risk control (like the attached demo) these DDs could be the end of the game. From my experience as of the beginning of the year using this strategy, these steep sudden DDs are always followed by strong reversals & eventually...
omg, lucky it was demo, i do hope your real account was well manage. trade safe
trade safe
- #333
- Jul 14, 2016 8:51pm Jul 14, 2016 8:51pm
{quote}Every once in a while when I have free time to give to active trading, I like to pick up on new concepts/method/techniques, and that's how I ended up on FF one day to discuss the TZ concept.
If you have free time, you can experiment with Currency Index.
As you know, currency pairs interlink with each other, so i recommend you create currency index from its pairs/legs. It really help with TZ Trading.
It has 99% recurrent probability as UnnamedPlayr mention (99% they will fix mispricing/imbalance).
Take a look at USD/CAD below:
CAD Index:
Index_DC = Dynamic Coefficients (Short Term)
Index_EC = Equal Coefficients (Long Term)
CAD_XAU (CAD/GOLD)
Red Line is CAD/USD (USD/CAD inverted)
1.
2.
If price and index move together, it is real move, so you can hedge and wait.
If they don't, they are just short-term imbalance/mispricing/retrace, you can add more positions.
I'm still learning, as UnnamedPlayr mention, they can fix imbalance with GOLD/SILVER, so if they hedge imbalance from FX to GOLD/SILVER,
i think that TZ leg should trade with caution (or shouldn't trade). That is why i add CAD_XAU to chart.
Zelo
Edit:
www.forexfactory.com/unnamedplayr
When you lose, I'm the loudest who laugh at your face )
)
