Thursday, 10 November 2011
Losers vs Winners
Theres no escaping losers with this new technique,as always we had to make sure our winners are more or bigger than losers,as for trend traders bigger winners is usually the case.But a hard to do for us average traders...whats the better ? Having streaks off losing trades and a big gain vs steady stream of booked profits with occasional booked losses. I chose the latter...
Wednesday, 9 November 2011
Further experiments 2
It seems the newest strategy works in ranging and trending markets for now, this past few days i have been working on euro dollar booking in profits ,while maintaining hedges in the minus, as the pair range i continue booking profits and cutting the losers gradually when the profits is bigger than losers.Eventually the balance and even the equity rises, bigger suprise when the balance and equity rises even faster in trending markets today, as euro trends down.
This happens simultaneously with closing of some big losers but the profits is bigger than -ve positions. At some point there was 12 -14 positions buy and sell combine which i gradually close all but 4 today after i decided to call it a day. All of this without using a single tp or stop losses.
Another version i will test is using 200p fixed SL for all positions long or short . I wanted to know if i can cut dd faster and maximizing profits at the same time, yet in one condition.. the profits must be bigger than the booked SL's that was hit...seems a new kind of challenge.Time will tell between the two.
This happens simultaneously with closing of some big losers but the profits is bigger than -ve positions. At some point there was 12 -14 positions buy and sell combine which i gradually close all but 4 today after i decided to call it a day. All of this without using a single tp or stop losses.
Another version i will test is using 200p fixed SL for all positions long or short . I wanted to know if i can cut dd faster and maximizing profits at the same time, yet in one condition.. the profits must be bigger than the booked SL's that was hit...seems a new kind of challenge.Time will tell between the two.
Tuesday, 8 November 2011
Further experiments
This past months have been great for pairs trading ,even with the chaos happening on the markets on the euro situation .Despite falling and rising,we kept booking more pips on eurgbp, albeit a much slower pace since we trade H4,one thing i noticed is that trades are getting fewer and more infrequent..this happens to narrowing range and crazy market movements. We did switch to H1 and even 15min to execute trades. But 15min tf is a unsafe but for quiet markets .I wont recommend even myself to trade those tf.
Due to this, i made experiments for EURUSD , i scoured the forums for information regarding hedging. One thing they did was booking the profits while at the same time ,reloading orders using limits orders,and closing the danglers which is losing positions gradually. I found that this shows promise , either a trending markets or ranging markets.It is a combo a both systems together, although i used a little MA to give me basic direction. This also in line with what a trader said. " Trading is not trading itself, but managing positions". A bit vague,but the philosophy behind is somewhat true. Will keep you posted.
Due to this, i made experiments for EURUSD , i scoured the forums for information regarding hedging. One thing they did was booking the profits while at the same time ,reloading orders using limits orders,and closing the danglers which is losing positions gradually. I found that this shows promise , either a trending markets or ranging markets.It is a combo a both systems together, although i used a little MA to give me basic direction. This also in line with what a trader said. " Trading is not trading itself, but managing positions". A bit vague,but the philosophy behind is somewhat true. Will keep you posted.
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