Baruch's Forex System Journal

[Baruch]

Quote from Scientist:

So far I haven't seen you ride your winners because of news / reasoning yet... All I've seen in this thread so far is you cutting some of your best system trades short or BE because of news biases, and missing out on large profits.

I will spare you an entire collection of your quotes here, but if you don't believe it, just re-read the whole thread.

Critical self-observation and self-honesty is one of the most integral necessities for achieving trading goals.

Hi again,

Well, Soros follows the news/information flow (as he writes in his books), and he has done it OK, I suppose? (And I don't think he look at charts...).
But let's stop this debate, Scientist, because we will never agree. You have your way of trading - and I have mine. That's the way it is.

 

[Baruch]

Quote from Baruch:

Hi again,

Well, Soros follows the news/information flow (as he writes in his books), and he has done it OK, I suppose? (And I don't think he look at charts...).
But let's stop this debate, Scientist, because we will never agree. You have your way of trading - and I have mine. That's the way it is.

And Random Trader has his way of trading - and I also wish him good luck.

 

[keving1]

Scientist:

I have enjoyed reading your posts. Based on your comments, I would say you and I share many of the same battle scars, hence, our perspective and positions are very similar.

I would add one book you left out, (excellent recommendations, btw) - Technical Analysis of the Financial Markets, Murphy. A great reference as well.

Now, to Baruch's new system; I commend him for bringing his system forward and trading it. He has done a very good job and I wish him continued success. IMHO, we should not spend too much time "whacking" him for not doing it our way. In time, he will come to his own conclusions or edit ones he already has -just as we have.

What is important at this point is that he is successful. Your advice has been very good, however, at some point it becomes a pain in the tail, primarily due to its method of delivery. Perhaps you have some rubber tipped spears in your arsenal?

keving.

P.S. Did you mean Pavlov's dogs? Or did you just rename them "Pawlaw's"?

 

[Baruch]

Quote from keving1:

Scientist:

I have enjoyed reading your posts. Based on your comments, I would say you and I share many of the same battle scars, hence, our perspective and positions are very similar.

I would add one book you left out, (excellent recommendations, btw) - Technical Analysis of the Financial Markets, Murphy. A great reference as well.

Now, to Baruch's new system; I commend him for bringing his system forward and trading it. He has done a very good job and I wish him continued success. IMHO, we should not spend too much time "whacking" him for not doing it our way. In time, he will come to his own conclusions or edit ones he already has -just as we have.

What is important at this point is that he is successful. Your advice has been very good, however, at some point it becomes a pain in the tail, primarily due to its method of delivery. Perhaps you have some rubber tipped spears in your arsenal?

keving.

P.S. Did you mean Pavlov's dogs? Or did you just rename them "Pawlaw's"?

Hi keving,

I like the debates with Scientist very much. I hope all readers also do. I learn a lot reading his comments (but don't tell it to our friend..).

I suppose 95 % of all traders trades like you and Scientist? Maybe that's a problem that you all trades the same way?

 

[Baruch]

Quote from Scientist:

Myself, I always use stops, and I never add to losers, but I will add to positions that are technically "in the red", because it increases my R:R, while adding to winners is false, because it does the opposite.

If you take the time to answer the questions / comments I have made in the long posts regarding your comments and system, I promise I will, with a logical and mathematically correct example explain to you exactly why.

Hi again,

Why should it wrong to add to winners? Because it increases your R:R? And so what? Who cares?
If you are surfing a big move, you will get much more pips by adding to your position.
As George Soros: The important is not if you are right or wrong, but how much you makes, when you are right, and how much you lose, when you are wrong.
Soros always add to his winners. When you are right, your position can't be big enough.

 

[Trend Fader]

Quote from Baruch:

Hi again,

Why should it wrong to add to winners? Because it increases your R:R? And so what? Who cares?
If you are surfing a big move, you will get much more pips by adding to your position.
As George Soros: The important is not if you are right or wrong, but how much you makes, when you are right, and how much you lose, when you are wrong.
Soros always add to his winners. When you are right, your position can't be big enough.

Personally I only add to winners when there is a news catalyst on my side.

If i go long Euro on some type of break and I am up 20 pips and then all of the suden some bad US news comes out.. I will immediately buy more Euro.. because I know that I have the trend and momo on my side.

 

[Baruch]

Stanley Druckenmiller in The New Market Wizards;

"The few times that Soros has ever criticized me was when I was really right on a market and did'nt maximize the opportunity.

As an example, after I had started working for Soros, I was very bearish on the dollar and put on a large short position against the Deutsche mark. The position had started going in my favor, and I felt rather proud of myself. Soros came into my office, and we talked about the trade.
"How big a position do you have?" he asked.
"One billion dollars" I answered.
"You call that a position?" he said dismissingly. He encouraged me to double my position. I did, and the trade went dramatically further in our favor.

Soros has taught me that you have a tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig. It takes courage to ride a profit with huge leverage. As far as Soros is concerned, when you're right on something, you can't own enough".

 

[Baruch]

Quote from Baruch:

Stanley Druckenmiller in The New Market Wizards;

"The few times that Soros has ever criticized me was when I was really right on a market and did'nt maximize the opportunity.

As an example, after I had started working for Soros, I was very bearish on the dollar and put on a large short position against the Deutsche mark. The position had started going in my favor, and I felt rather proud of myself. Soros came into my office, and we talked about the trade.
"How big a position do you have?" he asked.
"One billion dollars" I answered.
"You call that a position?" he said dismissingly. He encouraged me to double my position. I did, and the trade went dramatically further in our favor.

Soros has taught me that you have a tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig. It takes courage to ride a profit with huge leverage. As far as Soros is concerned, when you're right on something, you can't own enough".

Sorry: "Soros has taught me that WHEN..."

 

[Baruch]

More from Stanley Druckenmiller:

"Soros is also the best loss taker I've ever seen. He does'nt care whether he wins or loses on a trade. If a trade does'nt work, he's confident enogh about his ability to win on other trades that he can easily walk away from the position.

There are lots of shoes on the shelf; wear only the ones that fit. If you're extremely confident, taking a loss does'nt bother you".

 

[Baruch]

And a last one from Stanley Druckenmiller:

Before the Plaza Accord meeting in 1985, Soro's own traders had been piggybacking him, and hence was long the yen into the meeting.

The yen opened 800 pips higher this monday morning. The traders could'nt believe their own eyes, and anxiously started taking profit.

"Soros came out of the door, directing the traders to stop selling the yen, telling them he would assume their position.

While the other traders were congratulation themselves for having taken the biggest profit in their lives, Soros was looking at the big picture: The government had just told him that the dollar was going to go down for the next year, so why shouldn't he be a pig and buy more (yen)?"

---

Got it, Scientist?

Soros did: 1. Add to his winners. 2. Trading the news.