Baruch's Forex System Journal

[Baruch]

Quote from FX_Cowboy:

While I pretty much nailed the top of the EURUSD uptrend (in truth, I thought it would go just a bit higher, so I still had some powder dry in case it got up to around 12315), I completely screwed the pooch by allowing myself to be shaken out of my short position way too early.

In retrospect, it would have been much wiser to keep at least 1/3 of my position at B/E, and let the winner run (as Buk demonstrated last week). Ah well, live and learn... On the brighter side, I made some money, so I'm still a happy camper, and hopefully a wiser one.

But it was a good call. Why don't you use trailing stops?

 

[Baruch]

Quote from saico:

Hi Baruch,

where do I find more detailed informations about the 00 system?

Thanks

saico

Hi saico,

Go some pages back and read all from Buk.

 

[FX_Cowboy]

Quote from Baruch:

But it was a good call. Why don't you use trailing stops?

That would have worked out better also. As you've seen, though, it's difficult to know how far back to set trailing stops. If they're too far back, you lose too much profit before they are hit. If they're too close, you get knocked out of the trade too early. I'm still looking for a way to optimize my exits. My current strategy could clearly use some work.

 

[Baruch]

Quote from FX_Cowboy:

Commissions are $3.00 per contract per side. What I like about IB is that it is usually very stable (there are occasional problems, but they are very much an exception IMO). I trade IB through a "front end" (Ninja Trader), which costs an additional small monthly fee, but which makes it very easy to use IB.

What I don't like about IB is that it shuts down every night at midnight for about an hour, and while there are some workarounds (inlcuding making an overseas call if necessary to get out of a position, or having your server close at a different time), this is still an irritant for me. Also, the minimum position size is one contract ($12.50 per pip), which makes it potentially expensive to test new strategies with real money.

OK. 3 bucks per contract per side are not bad, but I suppose TRADERguy don't agree? The FX futures market are closed one hour (after the Chicago trading). You don't think that is the problem? I have heard some good things about Ninja Trader - e.g. about mechanical trailing stop. Is that correct? How much does it cost?

 

[chinook]

Quote from FX_Cowboy:

While I pretty much nailed the top of the EURUSD uptrend (in truth, I thought it would go just a bit higher, so I still had some powder dry in case it got up to around 12315), I completely screwed the pooch by allowing myself to be shaken out of my short position way too early.

In retrospect, it would have been much wiser to keep at least 1/3 of my position at B/E, and let the winner run (as Buk demonstrated last week). Ah well, live and learn... On the brighter side, I made some money, so I'm still a happy camper, and hopefully a wiser one.

With these wild swings in EUR, it's very tempting to lock into all of the profits. Anyway, taking partial profits and trail with the rest would be best of all worlds.

Chinook

 

[Baruch]

Quote from FX_Cowboy:

That would have worked out better also. As you've seen, though, it's difficult to know how far back to set trailing stops. If they're too far back, you lose too much profit before they are hit. If they're too close, you get knocked out of the trade too early. I'm still looking for a way to optimize my exits. My current strategy could clearly use some work.

I think we all have that problem. But I don't know the best solution. I think the good thing with a trailing stop is that you let the market take you out. And this should be easy with Ninja Trader?

 

[Baruch]

Quote from chinook:

With these wild swings in EUR, it's very tempting to lock into all of the profits. Anyway, taking partial profits and trail with the rest would be best of all worlds.

Chinook

TRADERguy,

I suppose you don't agree with Chinook?

 

[FX_Cowboy]

Quote from Baruch:

OK. 3 bucks per contract per side are not bad, but I suppose TRADERguy don't agree? The FX futures market are closed one hour (after the Chicago trading). You don't think that is the problem? I have heard some good things about Ninja Trader - e.g. about mechanical trailing stop. Is that correct? How much does it cost?

NinjaTrader not only has trailing stops, but the ability to automatically set targets, stops, trailing stops, and other things. It can take a little while to learn how to use all of the options, but it's possible to set up your whole strategy in advance with NinjaTrader. By the way, I understand ButtonTrader (and probably some other front ends for IB) are capable of doing the same -- or similar -- things, but I only have experience with NinjaTrader. The version I use costs $35/month.

 

[chinook]

Quote from Baruch:

OK. 3 bucks per contract per side are not bad, but I suppose TRADERguy don't agree? The FX futures market are closed one hour (after the Chicago trading). You don't think that is the problem? I have heard some good things about Ninja Trader - e.g. about mechanical trailing stop. Is that correct? How much does it cost?

Baruch,

Bracket Trader is free if you are entering up to 5 contracts initially. But you can scale in as much as you want.

Chinook

 

[Magna]

Quote from Magna:

FX_Cowboy et al, please do NOT discuss companies that are non-sponsors at ET as that provides them free promotion, free advertising (and I'm sure some members of the various firms will be glad to use the opportunity to jump in and tell you how great their company is). First, it's not fair to our paying sponsors, and second it's against ET policy. Thanks.

Quote from Baruch:

Magna,

This is MY thread, and here we discuss anything we like to discuss. Were are free traders. If you don't like that - you must close the thread. I only know one company making promotion here - Global FX.

Baruch,

A discussion on RefcoFX (with link) was started which I removed. And please understand that you are able to freely use ET, start threads, post, etc. at the pleasure of Baron who is providing this site. With that goes some responsibilities and requirements, one of which I stated above. This may be your thread but this is Baron's site. If you cannot or do not wish to comply then I will be glad to close the thread.