Elite Trader's Gambler's Anonymous ETGA

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faure,

I don't want to put you on the spot or anything like that. But feel free to start a Journal, if you wish.

I would be your first subscriber!

I can trade System #2 here and you can trade System #1 in your Journal. That would be a great complement to ET and give credit where credit is due...

Michael B.
 
i'm not inclined to start a journal at this point es, but this may change later. anyways if someone wants to know more about my version of the "volatility grabber" - as you've named it - they are welcome to ask.
 
Today's Trades (Monday)

I was able to trade a little and get rid of those line item positions that had too many contracts, but there are still two remaining. After all the trading I had to return the holdings to their respective Ideal proportions according to their spreedsheeted' amounts...

I will post a screenshot a little later.
 

Attachments

The 6 minutes a day labor is how long it takes me to update the speadsheet as hardly any trading is necessary. It actually takes less time, but I average it for days like today when an extra 10 or 15 minutes is used for trading.

This is a carry system and not much trading or analysis is involved. Just enter your interest earned that is reported daily in the platform into your spreadsheet, and fill in some other blanks in the spreadsheet...thats it...Keep a trade log which I suggest. I keep a trade log on ALL my systems and the 6 minutes would cover that time too.

You do not need to be glued to the charts and if you wish you can glance at them throughout the day while working at another job or trading another system.

I update the spreadsheet at 17:00 est daily 7 days a week.....Saturdays there is never any trading, so I can skip that day....

Michael B.

P.S. I could not trade without my spreadsheets and trade log. I put a lot of strategic statements in my trade log and begin each day with them. I set my clock by them and I study them and record important times in them. But this carry system does not require much strategy or lengthy trade log entries, but it does need the speadsheet, as you can see.
 
These three pair (AUD/JPY, GBP/CHF, EUR/HUF) being traded live in this Journal all represent one directional trades (positive, interest earning direction).

You just can't enter and walk away. You could find yourself with a margin call. So it is necessary to glance at the charts, "now and then" (daily if possible). Keep a cash account as I suggest and keep that "Gambling Meter" turned down (My "Gambling Meter" currently is way too uncomfortable for me, I might even add some more cash).

If the average price gets too far away from the current price then you need to average down. You can also cancel out a profitable trade with a losing trade too. KEEP THAT AVERAGE PRICE CLOSE TO THE CURRENT PRICE. I cannot preach this enough.

Michael B.

P.S. I have tried to pick a sensible combination of pairs. Perhaps some of you clever ones have asked yourselves why I don't trade NZD/USD. I don't like that pair and its just a personal preference. You can make more money with it, but watch out when it trends!

 
I am keeping the comments zeroed in on the system being traded. I see by the PM'S I am getting, that many Futures and Equities traders are glancing in on this Journal. Some even are considering Retal Spot Forex. There are also new traders reading.

I will try to mix in what I know about Forex, which is not much compared to the pro's. I speak in a different language that I call "plain speak". So if you think I sound like I am simple minded then so be it, but when I finally understand something, I really do. I find that pro currency traders depend on fundemental research, such as News, Politics, Reports and Current Events to consider the entry into the pairs and hedges that they follow. To be a purley technical trader in currencies is not really an excepted view in the profession. Currency trading has more of a global participation hence lack of standardization and central regulation.

This system being traded live here (Cash & Carry) is not what the majority of traders prefer to trade. This is not trading actually. It's a long term carry with a twist of short term adjustments. Countries can change their interest rates, pairs can react violently to ANY important local or global event. So this system is not like a CD hence my requirement for a minumum of 25% after labor. IT IS RISK CAPITAL.

Michael B.

P.S. Now before you experienced ones laugh to yoursleves about Electric attempting to educate.....you know... the "blind leading the blind". I have never claimed to be an expert in currencies after only trading them for less than a year. But I am a trader in Futures after learning with Equities and have some experience from there.


 
This quest I have been on, to prove that trading can vere over to the "not gambling" side of the road, requires me to practice some responsibility.

If you do not agree with me or do not understand why as time passes this method I am illustrating becomes, less and less, "not gambling", then please do not trade it.

I will continue to post System #2 (Cash & Carry) as long as there is interest, and as long as I can. But this is a boring, carry strategy, and there is very little to discuss here in the Journal.

I have attempted to make this interesting reading and mixed in another research project to illustrate "HOW TO THINK" as a trader and to witness other traders, TRAIN OF THOUGHT.

I hope you folks are gaining insight from this, but there are many ways to think. There are many ways to trade. This is what makes the market work.

A trend is measured between two points and depending on the two points is its direction. During trading hours there is never an instance where ALL of the points represent no movement.

Trend = Movement.

Michael B.
 
I have not talked about this much, but you will eventually notice a cycle with these three pairs selected. They move independantly from each other, but the ebb and flow of "trading days" within this carry system indicate a cycle length that you should be putting into your personal trade logs.

Just note them and refer to them. Be observant and look at the EUR/USD and see what it is doing on those days we find ourselves trading in this carry system.

What happens after the dust settles? Watch and record this too!

Your observations skills can begin to give you a feel for how all the pairs are related to each other and how the ebb and flow compares to news and economic reports.

Don't try to do too much at once. Keep it simple and speak to yourself in "plain speak". Ponder and learn, but completely understand your discoveries. Tighten every bolt....Start to meld your own personality into your trading and find a fit.

Yes, trading this system and following this Journal, can teach you to trade Forex, even though you are not trading. I hope that this system provides you with a safer way to endure your learning period. Survival is important, but just to get the time you need to pull money out of the Forex Market. There is plenty to go around and I do not like to think of it as War. But some find enjoyment from that and for all I know they could be correct. My personality does not fit that mentality. I am a systems trader and when I find an edge I exploit it aggressively. When it stops working I find another. This has nothing to do with War and there are so many ways to take money out of the market, why waste your time with those unnecessary thoughts. For me ,Taking what the market gives is important. To be open minded and observant are the thoughts to concentrate on.

Making money has nothing to do with winning

Michael B.
 
Electric,

Well it seems you just finished another chapter to your book. Will it be 750 pages long?

Seriously though, In all your ramblings, I sense that you will not be forward testing System #1. What are you leading into?

If I think I have this correct. You are not going to do anything until you get this thing you call the "Gambling Meter" set to 3.50:1 and you are simply just buying time in this Journal.

I think many here are more interested in System #1 ("Volatility Grabber" as you call it). Why do you have catchy names for all these systems? Isn't that immature? Just trade and forget the sizzle. Some traders think you are an absolute nutcase and in a world of your own.

Honey, You know I am always honest with you. I know you have the rest of your life....but don't let System #1 pass you by. I think you have something there and I support you 100% to begin building the "grab". I think others here would like to see it traded and are secretly hoping you will share. I may be wrong, as there are a handful of people opening up your spreadsheet.

The key to the "grab" is time and size. You and the boy's have seemed to isolate a way to measure it indirectly.

faure, dw, tripack, wd, max and others have helped and contributed. But lets face it, you brought it all together and built the spreadsheet to support their inputs. Your creativity and questions along the way helped them to form a hypothesis and a view. The progress of this Journal has been incredible and a step by step progression.

I think that creativity is very important for a trader to posses, and Electric you never cease to amaze me. It seems I always post as your alter-ego..or as you call me your altar-ego. But somebody must keep you stable and in reality, or you will simply float away into lala land...This Journal needs me and you do too.

Wifey
 
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