No-risk-trading

J

jettel

High all!
I'am from austria.
I heard an read in a magazin 'Traders! (german) Sept. 05 from a new methode TRADE WITHOUT RISK (from Detlef Wormstall).
Today was the first day I tried in a demo (Broker: Capital Market Services LLC in New York, Software: Visual Trading VT)....and I Think we can learn something -> to trade against all traditional knowledges.

The idea is from D. Wormstall, who normal don't talk in a forum. I hope he did'nt mind, that we discuss his approach (valid for stocks, but we should it test for our FOREX-Trading):

1. Technical Analysis is not reliable. It is a big mistake to view only the charts.
2. Prognosis are insufficient and have too much risk (if you could say the target, you could know the profit, that's not right!).
3. It you beginn a trade, first see the market-mood (indikator TRIN, TRAN, TICK of NYSE, USD etc.)
4. Check the volatility of a value, f.e. ATR (Wilders). The volatility regulates the composition of your account. The volatility regulates also the quantity (lot) of your positions.
5. Risk of a trade 0.5-1.5%
6. no targets, where the course would go to.
7. if the course decreases, turn the value (f.e. from short to long)
8. Hedging in phasis of side-by-side-courses (sideways), put the risk to zero.
8. Kill all positions, which are negative.
9. Calculate the maximal loss bevor Trading a value.
10. Increase all positions, which are positive
11. Don't hold long big positions.
11. Buy new values than, if the risk decreases
12. All the time try to find the ballance between chance and risk (plus/minus).

I traded today first time with GBPUSD some hours.
I checked the main-trend and used rsi10, MACD 12,26,9, ATR (volatility).
The entry was in direction of the maintrend, and in case of a pullback against this trend (big lots, but not much pips).
If I was wrong, the exit was at -20/-30 pips or I decreased (f.e. 0.3 lot -> to 0,1 lot) in the wrong direction (it could be possible that the course comes back early).
If I was right, I increased with an additional entry.
The most time I took a look at my account, the money/risk.
In addition I took candle-formation, trendlines (in sideways), rsi and MACD to controll the entry, exit or inreasing/decreasng theposition.

Totally I had 24 trades, 13 of them negative (-586,3 -> average -45,1 EUR), 11 of then positive (+818,4 -> average +74,4 EUR).


bye
(there is no strategy, there are only tools...the rest is luck)
 
This was an interesting item, quoted below.

This is what you could do...open up all the pairs that your dealer marketmaker offers and go long and short in each at the same time.

Then if you have a platform that arranges all the trades in a trade tab and sorts them by profit take off all the negative ones and let the others run until you net the profit you desire. Don't wait too long though.

I know this is a stupid way to go about it, but it would make managment issues easier though huge diversification. If you can beat the spread and discover enough pairs to give you the net you desire then who cares? But it is platform specific and I have a dealer/marketmaker in mind for this.

I am going to play in the game account...hehe

Michael B.


8. Kill all positions, which are negative.
 
Quote from ElectricSavant:

This is what you could do...open up all the pairs that your dealer marketmaker offers and go long and short in each at the same time.
More...

You're not serious??? :confused:

For some reason people can suggest the nuttiest things and somehow get away with it in FX.

If your stock broker suggested you go long IBM and short it at the same time, and just close the side that's losing money, tell me you'd happily pay him the extra round turn for this priceless advice?

Is it just me, or is this just completely inane? Because it's not the first time I've read or heard of this "strategy" before.
 
I though the only "no risk" trading was with a demo acct....
You are certainly right about #1. What ever happened to reading the damn tape?!?:confused:
 
Quote from jettel:

High all!
I'am from austria.
I heard an read in a magazin 'Traders! (german) Sept. 05 from a new methode TRADE WITHOUT RISK (from Detlef Wormstall).
Today was the first day I tried in a demo (Broker: Capital Market Services LLC in New York, Software: Visual Trading VT)....and I Think we can learn something -> to trade against all traditional knowledges.

The idea is from D. Wormstall, who normal don't talk in a forum. I hope he did'nt mind, that we discuss his approach (valid for stocks, but we should it test for our FOREX-Trading):

1. Technical Analysis is not reliable. It is a big mistake to view only the charts.
2. Prognosis are insufficient and have too much risk (if you could say the target, you could know the profit, that's not right!).
3. It you beginn a trade, first see the market-mood (indikator TRIN, TRAN, TICK of NYSE, USD etc.)
4. Check the volatility of a value, f.e. ATR (Wilders). The volatility regulates the composition of your account. The volatility regulates also the quantity (lot) of your positions.
5. Risk of a trade 0.5-1.5%
6. no targets, where the course would go to.
7. if the course decreases, turn the value (f.e. from short to long)
8. Hedging in phasis of side-by-side-courses (sideways), put the risk to zero.
8. Kill all positions, which are negative.
9. Calculate the maximal loss bevor Trading a value.
10. Increase all positions, which are positive
11. Don't hold long big positions.
11. Buy new values than, if the risk decreases
12. All the time try to find the ballance between chance and risk (plus/minus).

I traded today first time with GBPUSD some hours.
I checked the main-trend and used rsi10, MACD 12,26,9, ATR (volatility).
The entry was in direction of the maintrend, and in case of a pullback against this trend (big lots, but not much pips).
If I was wrong, the exit was at -20/-30 pips or I decreased (f.e. 0.3 lot -> to 0,1 lot) in the wrong direction (it could be possible that the course comes back early).
If I was right, I increased with an additional entry.
The most time I took a look at my account, the money/risk.
In addition I took candle-formation, trendlines (in sideways), rsi and MACD to controll the entry, exit or inreasing/decreasng theposition.

Totally I had 24 trades, 13 of them negative (-586,3 -> average -45,1 EUR), 11 of then positive (+818,4 -> average +74,4 EUR).


bye
(there is no strategy, there are only tools...the rest is luck)
More...

Hello jettel,

Two monthes down the road, are you winning?
:) :p :D :cool: :( :mad: :confused: Tell us if you are still on ET.
 
You must log in or register to reply here.
Back
Top