Drawdowns

[nononsense]

Quote from achilles28:

I'd like to ask the more advanced traders on the board how an intermediate, like myself, can eliminate drawdowns?

Better entry timing? Moving stops to breakeven asap? Combination of both?

Can you give me any advice?

You never eliminate drawdowns. You learn how to control them. In the end the will become "insignificant". This is, at least for me, a very lengthy and demanding process.
I'll give you a hunch: stop in trying to separate "entry timing" from "stop placement"

 

[Ripley]

Quote from nononsense:


I'll give you a hunch: stop in trying to separate "entry timing" from "stop placement"

Always In? how can that reduce drawdowns?

 

[ElectricSavant]

Sorry to interuppt...


Balance...interest carry....capturing larger moves for starters...

Quote from Ripley:

Always In? how can that reduce drawdowns?

 

[Ripley]

Quote from ElectricSavant:


Balance...interest carry....capturing larger moves for starters...

You also give back a lot of profits.. You do catch really huge moves.. UP all the way and down all the way.

 

[achilles28]

Quote from ElectricSavant:

You can put on a hedge..to buy you the time that you need...preferably a positive carry pair....

Thats a good idea. I never thought of that before. Thanks.

Quote from ElectricSavant:

usually everything returns and you can grid your way back....

Im not sure what you mean by 'grid your way back'?

Quote from ElectricSavant:

Respect your Uncle point and fight to stay under it until the end...Use everything you know...Use your spreadsheets and calculate your way out of it....There are certain things that you can do to get the time you need....strategic placing of pairs into the picture at the right time is where it is at...

Thank you. This makes sense.

I trade off the 5 min. Hedging the pair and then removing the hedge after the original has gone to breakeven, seems like a good start.

Quote from ElectricSavant:

When you look at your charts and cannot find a trade....this is when you take a break....I take frequent breaks to get perspective...some of my breaks have lasted several months.

Sound advice. This ties in with the observation - trade the near-guaranteed winners and leave the rest.

'trade less, profit more' philosophy.

Again, something I will take a look at.

 

[ElectricSavant]

just so they are not at the same time gridding the flow is a good thing too...but can trap you for many months...

Quote from Ripley:

You also give back a lot of profits.. You do catch really huge moves.. UP all the way and down all the way.

 

[nononsense]

Quote from Ripley:

Always In? how can that reduce drawdowns?

Never talked about "Always IN".
I'm in as little as possible.

Quote from achilles28:

This ties in with the observation - trade the near-guaranteed winners and leave the rest.

Can't argue with that one.
BTW, who near-garantees these winners for you?

 

[ElectricSavant]

achilles,

Interesting...but in Forex when they say Hedge, they mean a long and a short at the same time...this can be a wastful way to trade, but you can find the trend...

I do not exactley trade like this...but you need to play with it and evolve....the completed hedge can be like an offsett on the teeter tottor of balance...You will net out your direction eventually...learn to take some TP out of the flow during your hold...this fortifies your basket making the time worthwhile....sometimes all this complexity is not necessary, as everything you put on finds its way...react, balance and stratagize....the methodical way is best...

You will eventually be able to withstand whatever the market gives you....you will see...This is more important than yield. when you get this far, then your challenge becomes increasing yield, but you gotta get there first...and this is not gambling...

trade off the 5 min. Hedging the pair and then removing the hedge after the original has gone to breakeven, seems like a good start.

 

[achilles28]

Quote from nononsense:

Never talked about "Always IN".
I'm in as little as possible.

hmm. If you're not always in, are you reffering to stalking the 'sure things'.

Trade only the near guarenteed moves and stop management becomes relativily inconsequential?

Thanks for sharing

 

[ElectricSavant]

I use high probility set ups with my hedging and stay rather active while I watch 15-20 pairs...with up to seven of them on at one time...I have not been flat for 82 days and never exceeded 4:1 leverage while staying under an 8% DD...All is calcuted in percentages and I can trade any amount of capital...This is retail spot forex...my dreams would be to have enough capital to actually effect liquidity during London Trading....oh my gawd...