Elite Trader's Gambler's Anonymous ETGA

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Are you writing about System #1 (Volatility Grabber) or the system I am trading? (System#2, Cash & Carry)

Actually the system I am trading is one-directional...

Michael B.


Quote from sunnyskies:

I think this idea of non-direcrtional trading is nuts... You have to take risk. Unless you arbitrarage or whatever,
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Quote from ElectricSavant:

Are you writing about System #1 (Volatility Grabber) or the system I am trading? (System#2, Cash & Carry)

Actually the system I am trading is one-directional...

Michael B.
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And in theory, higher interest rates leads to higher currency. So long term we should be biased toward FX gains too.

It's just a matter of surviving drawdown. Thing i won't be able to do i'm afraid. AUD is killing me! And it busted support big time! Worst thing, i expected it to happen and entered anyway.

Oh well, i'll put a couple of wide stops, and if i'm busted i'll take what's left of my account and spend it at the casino!

For correlations, i understand about it, i was just too lazy. I just take the guess that if i stick to intra-continental pairs (AUD/JPY, EUR/GBP, USD/MXN) correlation shouldn't be too much of a factor.

But here's the thing, i want:
maximum ROI possible
maximum diversification possible
minimum correlation
able to survive drawdown.

Now let's find the balance in that, if any....
 
I'm countin' on ya..max

I am concentrating on the lowest drawdown I can achieve and trying to dial in exposure to maintain it, while getting 1:4...we are a good team max...

Michael B.





Quote from Maxprofit$:

And in theory, higher interest rates leads to higher currency. So long term we should be biased toward FX gains too.

It's just a matter of surviving drawdown. Thing i won't be able to do i'm afraid. AUD is killing me! And it busted support big time! Worst thing, i expected it to happen and entered anyway.

Oh well, i'll put a couple of wide stops, and if i'm busted i'll take what's left of my account and spend it at the casino!

For correlations, i understand about it, i was just too lazy. I just take the guess that if i stick to intra-continental pairs (AUD/JPY, EUR/GBP, USD/MXN) correlation shouldn't be too much of a factor.

But here's the thing, i want:
maximum ROI possible
maximum diversification possible
minimum correlation
able to survive drawdown.

Now let's find the balance in that, if any....
More...
 
I'm sorry to read so many of you are collapsing. This, I think, is proof positive my trading strategy cannot be taught except perhaps to a select few conceptually oriented thinkers.
 
What is cash & carry?

It's a money management system simply buying three pairs that pay interest (Long AUD/JPY, Short EUR/HUF, Long GBP/CHF)

They are one-directional trades! So all this discussion is what to do when they go in the wrong direction, which they MUST do.

Thats all.....there is to it.

Michael B.
 
So, this 107 page journal is just about carrying interest positive trades? You'll need at least $300K to make a modest living from it. With 1 mil, you can grow the account slightly, while extracting a decent paycheck. No wonder you're looking for investors!
 
So what does this System do when the direction goes the wrong way?
  • There is enough cash to draw from to "average in" with.
  • There are calculations drawn from historical range to weight exposure with.
  • The three pairs were carefully chosen and currently trade independently from each other.
  • There are rules defined to take "trade offsets" by closing one or more profitable positions in a pair and closing one position in a losing pair whether it be the same pair or a combination of pairs to keep the "average trade price" and "current price" close to each other.
  • There is a scaling technique for initial entry and re-entry and a plan for how much to start off with or re-enter with.

Michael B.
 
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