Cash & Carry

ElectricSavant · Jul 23, 2005

25% APR is projected with a max 8% projected DD, with a 1:4 max risk to cumuative profit potential.

stay tuned for continued live trading in the new Journal. I am on a break now...

gkishot · Jul 23, 2005

With the leverage of 100:1 it would be 50%, right?

ElectricSavant · Jul 23, 2005

I do not even make it past 10:1....and I would not suggest anything else. You will blow up...max tried it that way...

You need time on your side for daily interest injections and cycles to complete for trading opportunities..

This is a long term carry system for conservative traders and should be traded accordingly.

You must understand the geometrical progression.

Michael B.

Quote from gkishot:

With the leverage of 100:1 it would 50%, right?

gkishot · Jul 23, 2005

Why not? With 4 currencies in play your system almost totally hedged. You would be blown up with 1 currency but with 4 pairs you might want to shoot for a higher risk/reward ratio. Just my 2 c.

ElectricSavant · Jul 23, 2005

please gkishot,

Don't do it...please. Just trust me. It is hedged just now, but you cannot depend on long term correlations.

Don't worry, you will get what you want, if you let me teach this system. You must understand that I cannot overstate yields and I remain conservative. Patience is needed and you might just get what you want. In the beginning you must scale in and wait for the occasional trading opportunities that this system gives.

The live trading for 60 days never had one losing day in the realized P/L, including weekends!

Michael B.

Quote from gkishot:

Why not? With 4 currencies in play your system almost totally hedged. You would be blown up with 1 currency but with 4 pairs you might want to shoot for a higher risk/reward ratio. Just my 2 c.

gkishot · Jul 23, 2005

Anyway, with the leverage of 10:1 the return of 25% is really good. I think this is one of the best FX systems for the long term investors.

ElectricSavant · Jul 23, 2005

It's my gift to you and thank you for the kind post.

Good Trading to you...and check in on the new journal from time to time.

Michael B.

Quote from gkishot:

Anyway, with the leverage of 10:1 the return of 25% is really good.

Remiraz · Jul 23, 2005

Quote from KevinK:

I don't understand why on these forums if a concept isn't super short term it deserves no respect. Electric's results speak for itself.

Quote from gkishot:

Why not? With 4 currencies in play your system almost totally hedged. You would be blown up with 1 currency but with 4 pairs you might want to shoot for a higher risk/reward ratio. Just my 2 c.

Dear friends, upon closer examination you might find that the heart of this system is "averaging down losers to get out on rebounce". The pairs held are no where near "almost totally hedged". In fact, they are "almost totally unhedged".

No malicious intent, just pointing out the realities of things thats all.

ElectricSavant · Jul 23, 2005

These are eight different currencies however the EUR/HUF and NZD/USD are hedging each other somewhat.

Well also the ability to take out losers is also the left ventricle...

And naturally, nobody in their right mind would average down unless there was an daily interest injection.

Michael B.

Quote from Remiraz:

Dear friends, upon closer examination you might find that the heart of this system is "averaging down losers to get out on rebounce". The pairs held are no where near "almost totally hedged". In fact, they are "almost totally unhedged".

No malicious intent, just pointing out the realities of things thats all.

Remiraz · Jul 23, 2005

Quote from ElectricSavant:

Remiraz,

Take another look at your calculations and consider margin.

Oops, my bad. After margin considerations, NZD/USD returns $0.835 a day for 10,000 units held compared to $0.583 for 10,000 units of USD/CHF.

Quote from ElectricSavant:

I use reverse martingale also, according to what the system is telling me.

As far as "averaging in" dont forget there are losses taken "together" with winners. There is also a profit taking mode that could "pyramid in" too...The four reasons to trade with this system is to average in, take profit, establish/adjust proportion and to compond from the daily interest injections.

One more thing...Have all four of these pair ever moved togehter historicaly for a significant time? Any time period...check it.

Michael B.

Hmmm....

You got to admit, the basic prinicple IS average down losers hoping they'll rebound. While some pairs will rebounce. providing winners that will take away losers, you can't be entirely flat from that. You can use AUD/JPY's winners to take alway 1 or 2 of EUR/HUF's losers. But you're still left with AUD/JPY's losers!

From what I see in this journal, you scale in all the pairs with about 1000 units lots. All 3 pairs had losers hanging onto them eventually. Unless all 3 pairs rebounce, you cannot go flat.

Even if they rebounce all together, you will not be able to make enough to recover your losers on those trades unless you martingale geomatrically or it rebounce all the way back to the entry price of the first lot.