Forex Is As Easy As 123 - page 6
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Flexie,How come you went short?
On IBFX H1,
Open = 9806
Close = 9805
Therefore a down bar.
slippage?
The first described system in this read is called correlated hedge trading. You simply trade two opposing pairs that have a high correlation coefiicient like eur/usd and usd/chf and then watch carfully for a discrepacy that put you in profit. You buy one of each at the very same time.
The system relies on a high degree of correlation (which can change overtime) and that the pairs carry an approximate equal interest rate so that the carry over is profitable too. This too can change over time also. The other thing is the sometimes it takes a while for the pair to get to the point of profit so drawdonw is large and you need a proper way to calculate the correlation and interest and the exact amount of lots to purchase of each pair so that the pairs are well balanced to protect you.
There are several companies that offer things like that.
The other thing is you need to do ideally is pick a moment when both pairs are likely to go up which helps get you in at the best times and most likely make the most profit.
So far the system is good because eur/usd and usd/chf are correlated by approx -90% from what I recall in course I took so equally divided purchases should be good. Still you need to take into account:
Your account size
Your risk factor
The pip spread of both pairs
The correlation bet the piars
The interest rates and carry over
Which all determines the size of lots you can purchase for each pair which is key to this tyoe of trading.
For now, if you want to play with this type of trading, just stick it eur/usd and usd/chf and keep equal balanced lots and very small lot sizes (like 0.1 to 0.2 lots maybe 0.4-0.5 at the most). Play with it on a demo account. If you get serious about it, i would recommned you research and find a proper calcualtor to do these calcualtions and trade them profitably.
Several companies are offering these type of hedge services and I cannot remember the rules from the moderators but I'll write them and if it's a no-no, jut erase them:
they are:
freedomrocks
forex-assistant.com
forex for smarties
True North Concepts: true_north@email.com (no website yet)
I can't remember the sites for each but they all offer similar calculators / systems. Freedomrocks and forex for smarties is pay per month membership. Forex assistant can be rented and/or paid for software in full bt can be personalized and changed and also have a forum to train you in their more advanced techinques. The true concepts calculator is a one time purchase of an excel sheet that is the most affordable option but needs to be updated regularly by the company. In terms of value they might offer the best deal but the others offer different types of suport and software.
So there you guys go and I hope this helps.
Flexie,
looks like a loss of 150 pips if you used a stop of 50. For anyone who followed the original post and traded only one lot GBP/USD with no stop, they're down over 40 pips as I write this,hoping for a major reversal to catch their 10or 15 pips. The problem with this method is that one loss can be 5 to 10 times higher than a win. You're chasingsmall pips with a risk of losing big ones. I just don't get it. Sure, you had a winner(s) the other day, but two or three 150 pip losses in a row, and you're done. Not trying tobe mean or sarcastic or anything, but I think this Perseus is full of it.
Well Paradoxial, you are right.... and will always be right. The first post has limitations and if you look for holes in other people's work, that is what you will find ... holes.
However, I am trying to build on a concept that Perseus has invented. All inventions need development and maturity. Sometimes the treasure is not in the obvious, but in the clues and the direction the clues send you in.
Just for the record, I increased my stops to 75.
This Forex game is about managing risk and the trade. Do the numbers, assess your risk, trade the system. I'm not trying to sell you on this or any system. Perseus just gave us some clues that I like.
P.S. I am glad you and others think Perseus is full of it. While you and the other dudes are trying to kill the idea, I booked 92 pips across 6 positions last night using the "clues".... I love Perseus ... you may have to read his subsequent thread to see the clues.
When the trade didn't go as was initially posted, and also went past a 50 point stop, all of a sudden, you miraculously had your stops set at 75 pips, all because of hidden clues in Persus's posts. Clues that feeble minds cannot discern, but because of the wisdom of the great Perseus, he knows his mysterious clues will be uncovered only by the lucky chosen few, so as not to alert the market makers to thwart his ingenious money making simple 1-2-3 system. This reminds of the predictions of Nostradamous,which are so rambling and vague that anyone can make anything they want out of them, and then accuse others of not seeing the "code". I hope you make lots of money. I doubt it's in a real account because 3 separate trades of 75 pip stops will wipe it out in short order. I get tired of alleged forex experts posting "systems" they claimmake wads of money, wand don't put their real money where their mouth is. I challenge Perseus, you, or anyone else to post a REAL account with real money for ANY system. Demo accounts and demo trading is easy, because you're only using play money. I'm sure this will be metby responses tht all of us doubters should just believe the system maker, or to look at the back tested results,or that they wouldn't want topost "personal" info.,etc., etc.
I just have toget my stickey keyboard fixed. @#!$
Again, you are correct on many items. This is being demo traded ... just heard of it 3 days ago. sheesh ... trying to improve it as each day goes by ... double sheesh.
Yes, changing to 75 pip stop loss was after I got stopped out on May 29, for a 150 pip loss. But if that hurts your account, you are way too leveraged, especially during development. My lot calculations take that SL potential into account, wouldn't yours? 150 pips at 0.1 minis isn't huge to lose, and again, calculations show me that the frequency of this happening are so low, that the system could handle it.
And as far as your challenge, guess I'm just a wimp with nothing to prove, cause you ain't gonna get it. Now if you want to be part of the solution and try to improve this, then that is a different story. I do agree with you on the trust issue ... I'm not trusting Perseus, just trying to prove that the system may work ... or not. At this point, it has enough potential to warrant my efforts.
Don't worry, I'll let you have the EA for free after I've spent 100's of hours of screen time, listening to this negativity, away from my famiy, perfecting it so you can make 40+ pips per day with 1% max drawdown ...
pippage to ya
OK, Flexie. I'll be waiting here. I see Perseus is strangely silent in coming to his defense of this simple system. I would recommend you concentrate on systems with a better risk/reward ratio. If you can make me an EA for a system with a risk/reward ratio that is opposite to this one, I'll be the first to try it. Watch out for the alleged forex gurus who speak in hushed tones as if they have some secret that you have to unravel, as if you're on some search for the grail that only they know the combination for. And, yes, Perseus, I'm referring to YOU!
Hello from sunny UK!!!