Which broker should you use????
Posted by: Dracozny in miscellaneous, education on
Aug 13, 2008
I often see traders in the chat room asking what to trade, how far to trade it, wheres the stops, etc. So it makes me ask a few questions:
Posted by: Dracozny in miscellaneous, education on
Aug 01, 2008
I often get asked about crazy automated expert advisers and indicators. usually ones for sale, and many of these sites include everything from the comic above. self proclaimed riches at the drop of a hat.
- Is this you?
- How long have you been doing this?
- Did you actually do this on a live account?
Ok then its time you re-analyzed all of this hopscotch madness! Lets look at all the systems you have used to date. Lets write down what you liked about each one, and then lets see which one suits you.We are not just looking for consistency in gains, but consistency in the trader.
Are you a high roller?
Some of you reading will want to learn from Mr. Leeson, he hedged and squalled and brought a bank down.
Are you losing your cargo in calm waters?
Some things to ponder as you sit in front of your monitor
Continuing from last time....
So the few of you who stuck around with any sort of interest after hearing "carry" "hedge" and "grid", are probably asking OK what is this crazy method.
This is a brief introductory to my system.
The overall basis is to collect the massive moves of two pairs on a daily basis, and then carry the losses. The two pairs used have a good negative correlation to each other and as a result react as a hedge as well.
EUR/TRY and USD/DKK
As you can see this is a relatively strong correlation.
now we don't just place a trade on both and hope one gains profit, sorry that's just a losing scenario.
we are using a grid method on both and only short. the result is when one goes down and shoots through our orders we collect a small % of the move on every take profit(TP). the other pair will in most cases not go through any of our orders. this is beneficial as it reduces any draw down.
Now we do end up with many orders not taking profit, and its not that big of a deal as we will earn interest on these. usddkk doesn't have that great of an interest rate but eurtry definitely does, at around 11-12% each order is also small and only gains a small % on the account so the draw down is again minimized by that fact.
I will post more details later.
Cont'd
