Ill chime in about building an millipede""" equity""" account.
Money management + risk management + compounding and consistent trading = $$$$$ success.
Money management + risk management + compounding and consistent trading = $$$$$ success.
Thegman's Journal (Equity Millipede Concept) 102 replies
Trading an Equity Millipede 23 replies
Equity millipede & Flying Buddha trading journal 9 replies
Build an Equity Millipede with the filtered Flying Buddha 171 replies
Application Development - Journal of Building an equity millipede 14 replies
DislikedHi Guys,
Re-reading some of Graeme's posts and ran into this one. Just trying to understand the reasoning behind what I have highlighted in Magenta color.
- Why would Graeme close the largest legs of the largest group? I understand we got to be sensible and mix and match some legs across different groups and not set any hard and fast rules. wouldn't it make sense to close a few more medium term legs to raise capital balance?
- Another related question... How important it is to keep accounting of pips for each...Ignored
DislikedTo me personally the system is flawed. I wholeheartedly agree that long term trend following is the way to go but if you just keep diversifying then eventually (over enough time) you will just keep eroding your profits as prices moves between trend directions.
The only way this doesn't happen is if a currency is moving in the same direction for a very long time like some of the CHF pairs.Ignored
Dislikedsystem? flawed? hmm... this is not a system!
In my view, the sole purpose of diversification is to smoothen the account balance 'curve' and then add an element of growth to cover future losses that 'will' arise from probes/stacks. It is no secret that the power of this approach lies in trading both direction (as no pair will ever move in the same direction for years without a decent amount of retrace on weekly), let the BE trades shake out for a couple of weeks and those that survive become prime for analysis whether to keep them running or select...Ignored
DislikedI have been studying this system for sometime. The basics of this system are similar to a couple of other systems I am aware of. One thing is for sure that this class of systems definitely has a logic at their base. It's the matter of application we should be more concerned with.
This system becomes profitable when market makes a sustainable and big move in one direction. Currency markets do show such moves but to a lesser degree as compared to individual stocks. Therefore, this system should be more profitable when applied to individual...Ignored
DislikedI have been studying this system for sometime. The basics of this system are similar to a couple of other systems I am aware of. One thing is for sure that this class of systems definitely has a logic at their base. It's the matter of application we should be more concerned with.
This system becomes profitable when market makes a sustainable and big move in one direction. Currency markets do show such moves but to a lesser degree as compared to individual stocks. Therefore, this system should be more profitable when applied to individual stocks,...Ignored
DislikedPast few weeks, I am solely logging on to my trading station only based on alerts/push notifications I set during the weekend and it is soooo much fun to not stare the darn charts.Ignored
DislikedHas anyone in this thread continuously stack positions if an opportunity arises like Graeme does? If so, given that it's the 5M chart, should I continuously stack positions for every bar until the opportunity is gone?
Thank you,
-LTIgnored
DislikedWhat alert system are you using? I have started doing the same thing but I don't think MT4 platform is able to send alerts if it is offline, so I am now looking for an online alert service that could be in sync with my own broker's pricing.Ignored
DislikedGraeme does not stack on 5M charts. If you see in some of his posts, he was just trying to help us understand how to interpret price action in realtime. Anything under H4 or H1 timeframe to stack is considered over-exposure (in my personal view unless you either lack patience or seek a thrilling experience... I used to be like that!). My preference is to stack (and move SL to BE) only after I find another good PA setup for entry.
Hope this helps.Ignored
DislikedHi Chicky,
Are these systems in public domain? Can you please share there whereabouts?Ignored
DislikedThanks Chicky. Good to have you on this thread. I agree, it does require patience to find good low risk setups and one way to deal is to 'avoid' the market by using alerts (you probably know this already).
Past few weeks, I am solely logging on to my trading station only based on alerts/push notifications I set during the weekend and it is soooo much fun to not stare the darn charts. I get alert, if I am free, I log in, quickly scan the chart, if I like the momentum/setup, I do a trade, switch to 5M chart to check the heartbeat of the market...Ignored
Disliked1. One is that of Jesse Livermore's. You may find it in "Reminiscences of a Stock Operator" and "How to Trade Stocks". Read these books in the same order. The second book shows practical application. (Note how many times he has repeated "If it was not wise to remain long, it was equally unwise not to go short. Just like Graeme's method)
2. All trend following methods.
3. Another (less preferred) is Hedging Strategy. Vast resouces on the net why and how do people hedge.
The basic concept is to go start to finish with a major trend until...Ignored
DislikedMarkets seems to be abnormal today. A straight drop like a stone with no retrace whatsoever. Anyway, a quick update. Was able to stick in three more shorts. Have not been able to get in anymore shorts.
Unrealized profits - 2250 pips.
Is this the start of something huge??Ignored
An update on my efforts to trade the NZDUSD the millipede way.
I closed out most legs from this series of trades for a profit of 1073 pips and left one short trade open. From then on for the last 7 weeks have been small losses trying to get a few legs going. Here is a weekly summary of how the trades have gone and current status.
Have lost a total of 1212 pips in the last 7 weeks. Total floating profit currently is roughly 1800 pips from the current set of legs. The one open leg from the earlier series is now 1200 pips giving a total of 3000 pips of floating profit.
Had a horrendous week last week, having lost a total of 416 pips trying to get in both long and short. I need to work on this aspect of my trading. Trying to minimize my losses during the times market gives an impression of turning.
Any thoughts on minimizing the losses during these times are welcome.
DislikedPersonally, I would not want to use alerts from the same broker you are trading with.Ignored
DislikedHad a horrendous week last week, having lost a total of 416 pips trying to get in both long and short. I need to work on this aspect of my trading. Trying to minimize my losses during the times market gives an impression of turning.
Any thoughts on minimizing the losses during these times are welcome.Ignored
DislikedHi Eklavya.
I'm not aware of a simple solution, but here I have few ideas to suggest:
1. One needs to decide whether he'll be trading this pair this week or not.
If there is clear downtrend - no point trying to catch falling knife.
Market must prove by PA that it has intention to reverse.
Best prove is if it trades above the previous downwards weekly candle open.
Even better to wait until "reversal" W1 candle is closed as bullish engulfing bar, cause I reckon engulfing bar is far more reliable pattern showing that one force is completely...Ignored
Disliked[left][color=#000000][font=verdana]An update on my efforts to trade the NZDUSD the millipede way.
I closed out most legs from this series of trades for a profit of 1073 pips and left one short trade open. From then on for the last 7 weeks have been small losses trying to get a few legs going. Here is a weekly summary of how the trades have gone and current status.
Have lost a total of 1212 pips in the last 7 weeks. Total floating profit currently is roughly 1800 pips from the current set of legs. The one open leg from the earlier series is...Ignored
Dislikeda bit hard to make out which ones hit BE versus SL... seems a bit of overtrading (or revenge trading perhaps) to me. May I add a reminder that Graeme has mentioned many times. One or two failed attempts in a day is a good indicator to let price move away from the current 'area' allowing us to focus on other pairs. It is easier said than done when you have a large floating position in your favor :-)
I am currently upskilling my ability to watch for a monthly or Weekly retrace to loose strength and wait for a pinbar to occur on H4/H1 and zoom...Ignored