Oh Man, I'm Flat
- Thread starter oldtime
- Start date
Very true, but after giving you the same argument the other day, I just realized something. Yes, I could just go long, EUR.CAD, but to do that would require me to exit EUR.USD and renter with two EUR.CAD. Its less expensive to simple add on the USD.CAD.
We each money manage in our own way. In my case, so as to ensure I lose no more than 600 pips on this trade, forced me to transfer money out of my account into my other trading account.
Also, since my trading account is in USD, I think there is a value to maintaining the USD base in each traded pair. I could be wrong on this, however.
so for instance, all 4 pairs I have on now are showing me a loss, and except for 1 they are all 1:1Quote from Zr1Trader:
Great story.
I have a question, when you spread your pairs out , does everything ever go against you or you get caught with positions being too correlated? Do you have a point where you're at loss where you ever go "im flat" or are you always diversified and "in" ?
now what?
it's unusual for all 4 to be losers
so about all you can do is put in a limit to add to losers and stops to add if it moves in your favor
just don't ever let that one big loser become your largest position
and it isn't that easy, it can happen before you know it
so far MAY is profitable, but not by much. At this rate it will take me all of 2013 to take out the 2012 high.
started running my old system in the paper account with some new tweaks, so far so good,
the old system just puts it on with a stop
the drawdowns are severe, but it allows me to trade larger size, and get more lopsided on the spreads
profits are taken when they get so large that if they were losses, I'd be sick to my stomach
size is constantly increased or decreased
otherwise it's about the same as what I have been doing
trades 10 pairs
aud.cad
aud.usd
eur.aud
eur cad
eur.gbp
eur.usd
gbp.aud
gbp.cad
gbp.usd
usd.cad
with 4 on a time
sometimes there is some pretty ridiculous cancelling out
downside is, it requires a long strong trend from time to time, and you have to buy a bottom or sell a top
downside is, you enter at the market and exit on a stop, and that spread can really add up
upside is, you are protected from getting on the wrong side of a rare long, strong trend
it's still all 90% money mangement
and money management is just a polite way of saying "size"
started running my old system in the paper account with some new tweaks, so far so good,
the old system just puts it on with a stop
the drawdowns are severe, but it allows me to trade larger size, and get more lopsided on the spreads
profits are taken when they get so large that if they were losses, I'd be sick to my stomach
size is constantly increased or decreased
otherwise it's about the same as what I have been doing
trades 10 pairs
aud.cad
aud.usd
eur.aud
eur cad
eur.gbp
eur.usd
gbp.aud
gbp.cad
gbp.usd
usd.cad
with 4 on a time
sometimes there is some pretty ridiculous cancelling out
downside is, it requires a long strong trend from time to time, and you have to buy a bottom or sell a top
downside is, you enter at the market and exit on a stop, and that spread can really add up
upside is, you are protected from getting on the wrong side of a rare long, strong trend
it's still all 90% money mangement
and money management is just a polite way of saying "size"
So size matters? urrr.... Money management matters? Funny, that money management is the primary cause of fights in marriage. .... or was that size?
Forex Traders,
I just wanted you Oanda users to know how easy that platform makes it to trade with Oldtime. This is a classic thread.
As you read take away this:
the whole idea is to never let your largest loser also be your largest position (and it can happen before you know it.)
You know I miss some of the veteran traders that visited here. Oldtime may have been the greatest Forex trader on earth.
ES
I just wanted you Oanda users to know how easy that platform makes it to trade with Oldtime. This is a classic thread.
As you read take away this:
the whole idea is to never let your largest loser also be your largest position (and it can happen before you know it.)
You know I miss some of the veteran traders that visited here. Oldtime may have been the greatest Forex trader on earth.
ES
This post from "Truth_" might be a great read to put together with "Oldtime" street smarts.
ES
https://www.elitetrader.com/et/thre...half-your-thoughts.314846/page-3#post-4542756
The second, seek to add to an existing profitable position, in a long term trend, in order to multiply the profits of the trade. Key to this strategy is moving the stop loss along with the trend (not a trailing stop) so that the amount at risk never exceeds the risk of the first entry. In other words the stop loss has to move beyond the break even of the previous entry, so it has zero risk, and then another risk can be added. Applied judiciously in a long term trend, this strategy produces overwhelming results. Best case I ever had was 9 trades, maintained the nominal risk of the first entry throughout. Approximately a five times better result compared to a single entry trade (8 of the entries are closer to the exit, so there is diminished effect). 500% increase in profit, with no additional risk.
ES
https://www.elitetrader.com/et/thre...half-your-thoughts.314846/page-3#post-4542756
The second, seek to add to an existing profitable position, in a long term trend, in order to multiply the profits of the trade. Key to this strategy is moving the stop loss along with the trend (not a trailing stop) so that the amount at risk never exceeds the risk of the first entry. In other words the stop loss has to move beyond the break even of the previous entry, so it has zero risk, and then another risk can be added. Applied judiciously in a long term trend, this strategy produces overwhelming results. Best case I ever had was 9 trades, maintained the nominal risk of the first entry throughout. Approximately a five times better result compared to a single entry trade (8 of the entries are closer to the exit, so there is diminished effect). 500% increase in profit, with no additional risk.