I cant hedge but I wish I could. I could trade with bigger lots.f451 wrote:Bob, with these yen crashes, which are infrequent, but as you've pointed out tend to recover at least 50% within a day or two, do you ever hedge on the way down? I seem to recall you did extensive work with "recovery" trading in earlier systems. Seems like yen pairs would be great for a well time hedge or stop and reverse against a standard 10.4 trade if there is a sudden spike - take the hedge off when it looks to turn around and start to recover and profit both ways to either offset the initial 10.4 trade, or stop and reverse the original it you're there early enough...nanningbob wrote:So the life of a Forex trader. If you had a 2000 account and traded small lots you would still be in the ballgame, recovery time. I went to just over 9% DD yesterday but my winnings this week were 8% so I just a bit low. Then the retracements came and I cashed in so now a solid up 10% with a 5% DD for the week. I will work on bring down my DD today and cashing in my new trades and hopefully finish up the month strong. Depending on how next week goes I am looking at a 40-50% increase at best and 25-35% at worst. Both reach my goal of making over 10% a month. I not into the re-enter every 20 pips thing yet for the very reason whiplash can still happen at anytime no matter how good a system maybe. SO I will stay going from line to line for now. It works for me.VirtualFM wrote:That's nothing! Here's my story:spillini wrote:BUMMER, BUMMER and more BUMMER. I got one for ya, Went to work thinking my G/J trades would be safe. Set my stop at 151.80. Come back home and find out the price went to 151.793. Got back in long but really missed out. BUMMER. Thats Trading.
Jim
After a period of "putting myself together" after some hard losses and getting the courage to play the game again, I fiddled with Bob's system for a while and threw another 200€ into my live account, paying special attention to all my previous mistakes: overtrading, jumping in too early, overtrading and, last but not least, overtrading!
So I was going slow with 0.01 or 0.02 lots in rare occasions, and I was very happy with the progress, taking my 200€ to a whopping 280€ in about one week and having minimum DD. So I went to bed this morning pretty satisfied with the system, my progress and specially with myself! But while you had the problem of G/J, I had a problem on G/J, E/J, U/J, C/ and everything/J, has I had some pending buys and even some pending Buy Limits here and there, never thinking that everything would trigger at once and everything would suddenly turn to the wrong side. And I was having large SL... and all got hit! So I woke up to an account full of SL hits and, since it was such a small account not prepared for sudden 2000 pips fall (summing all currencies on JPY should be more than that) even margin call, to a total of... 41€! It was in-sa-ne!
I quickly picked whatever was left and started jumping in in the JPY-sell again wherever possible, taking small jumps of 15pips. I fixed the major bug of the scaling script I complained yesterday and used the famous "Jump EA" from Steve to increase BE as soon as the trade was positive. Found some bugs there and fixed them, threw some tweaked MPTM in order to not loose winning trades that jump a lot up-and-down (better to scalp 5 pips and grab them than to stand 20 pips of DD on this situation. I could always enter again and scalp another 5 pips).
So, it was an hell of a busy day... but in the end I was with a balance of 140€... So now I don't know if I should look at this by the negative side and moan "Awwww, I lost 50% of my account in 24 hours!!!" or if I should look at it for the positive side and say "Woohoo! I tripled my account in 12 hours!!!" (actually 350%).
Let's see how I can screw this up tomorrow!
Jermook is doing really good with the multi-entry but he is also being very picking with where he does it. No matter what system you use, nothing replaces experience in trading. You saw the JPY moves yesterday. It has always been my experience with the JPY when it has a big monster single day move on news like that a retrace of at least 50% comes soon after. So I really cleaned up on those re-tracements.
I still recovery trade on a limited basis. That whole area of trading if you ever get it will save you thousands of pips in SL. Using one trade to cancel out a losing trade works for me many many times. Seldom do I take a straight loss.
The key to recovery trading is closing out losses. You will notice I close out a lot of trades before they get anywhere or better yet before they get anywhere in the wrong direction. One of the reasons I close out losing trades is when I have a bunch of winners. I go ahead and clear out some of my bad trades. My biggest fault and strength in Forex is I over trade. Great when you win, ghastly when you lose. I constantly monitor how many trades I have going and sometimes whether they seem good or not. I will close trades if I have too many going.
I would say my greatest skill as a trader now is the ability to close out losing trades properly. Knowing which ones should and which ones I shouldnt. My biggest losers this week were the eur/gbp and eur/cad trades. I took them as bounces and the EURO took off and all of a sudden I was deep into the hole. I had no trouble killing the eur/cad trade but the eur/gbp is a notorious non-volatile pair. Well this week it was so I hung onto it knowing it wasnt going far. Well, dang it, it ran and ran. With 2 levels going I finally took over a 200 pip loss on that thing which is closer to 350 pip loss money wise because of the exchange rate. Probably my 2nd or 3rd biggest loser of the year. I badly misjudged that one. Add to that a couple of JPY hits and I have 32 losers totaling -992 for the week. Well 4 trades account for 690 of those negative pips 28 trades account for the 300 other losing pips. Those 28 trades were kill trades. I just didnt like them and I am not afraid anymore to just close trades out if they are not going anywhere. So I am up 3132 pips in one week. That is just freekin disgusting. How in the world can guys do stuff like this.
Bottom line is this. I am not afraid to trade but I also not afraid to close out trades. Of my winning trades 42 made less than 1.00. They were kill trades also but slightly positive. So 70 of my trades were kill trades.
I have had 182 winners this week so far. Now that may sound like a lot and it is but a lot of them are kill trades. Price goes up 10-20 pips and I miss the profit and it starts to come down and become a loser. I will take the 2-5 pip profit and reset the trade above the last high and do it again if I like it. This controls my DD but it also lets me get back in if the market moves. I am so glad I killed my JPY trades. I kept the cad/jpy and chf/jpy because they are the least volatile of the JPY pairs, except this time, of course they were the ones I kept.
So we know the 2 rules of Peter Principle of Forex.
1. What ever pair you trade it will go negative as soon as you enter and will move negatively faster than any other pair.
2. Any pair you dont trade will move positively faster than any trade you are trading.
