Is this confusing? Rules for ElectricSavants new Cash & Carry (Retail Traders): Rules for Cash & Carry (Retail Traders): 1) Start out with any amount of capital and try to find a dealer/marketmaker that allows one-unit trade size trade tickets. 2) Open up three Charts, AUD/JPY, GBP/CHF, EUR/HUF and NZD/USD. 3) Enter AUD/JPY with 100 units per 1k in capital that you started with. Enter the # of units in your spreadsheet in the "Base Proportion & Increment Finder" section, to discover how many units you should enter the other pair with. Go ahead! Enter all of them, according to the # of units the spreadsheet tells you. 4) Use the spreadsheet here and look at the "Base Proportion & Increment Finder", and enter in a limit order with the next average down entry at the increment indicated (from the highest/lowest position you hold). It's been easy so far, now lets continue: 5) If your entries become profitable, close them when you can take out a losing entry at the same time. 6) If all of your positions grow to All be net profitable at the same time, then simply take some profit and re-enter them, if there are no losers to take out. Almost done, just some finishing touches: 7) The "Base Proportion & Increment Finder" is very important. It tells you how to space out your "average in" orders. If there are any changes to your highest/lowest held price then you need to adjust your limit orders. 8) Lastly, you can draw horizontal lines on your four charts to give you a visual where your average trade price is compared to the current price. You can find your average trade price in the platform. I need Murtsy to simplfy this for me :0
Just keep sucking up or down the average price to the current price...thats all...Your average downs/ups limit order increments(two deep) waiting to be filled get reset in that process too! You gotta be there to see the dynamics of all of this working together, its tough to explain... also... a fast moving pair in the negative direction causes average in entries in ALL of the other pairs, whether they are signalling or not! Michael B.
Basically you keep averaging to bring down the average price so a sufficient retrace/rebound will allow you to close out all your trades.
or you take the trades off the bottom with a profitable one from a different instrument or the same instrument. same effect but does not increase exposure and you get a reset of the limit order waiting to average in with.
ES, To facilitate further studies on this system I require a couple of things from you. It should be rather easy for you to procure. 1) The state of all the positions when you finally went flat. Is this one correct: http://www.elitetrader.com/vb/attachment.php?s=&postid=790728 ? 2) Total profit taken from closing out profitable trades minus losses realised when cancelling respective losers. Basically when u neutralize your losers with winners you might have a gain/loss. I need to know the sum of those. 3) Total interest earned over that test period. Thank you very much.
I took the unrealized loss of minus $241.35 leaving $547.35 earned (combination of interest and trades) with the system in 72 calender days with an initial investment of $5,215.63, because I did not want to wait. This is a very tough system to get flat with and I did not like what I saw in the GBP/CHF, so I just took the loss rather than waiting. I will return to trading the New System in 30-60 days... Keep in mind the New System is more institutional and I will be trading it accordingly. The goal will be 25% APR and max DD of 8%. Hopefully it will even be better than that with a 1:4 max loss to cumulative profit, putting it at 32% APR. Remiraz, you are getting an understanding of the system? Michael B. P.S. As you trade it you will learn the cycles and become expert in how to set your exposure up. I find this a very difficult concept to teach. It is sort of an art form. P.P.S. There were many late edits (bad, bad habit) in the rules, please review them and post your concerns.
Here is this year and last year (Last year, I was trading another system together with Cash & Carry, which I lost in the other system.) Yes I can lose too! I was playing scalper with Bollinger Bands...I don't want to talk about it.. Michael B. P.S. I usually like to trade with two systems and use the gambling meter account for capital. But the new journal will stay toned down and focused or everyone will yell at me.
Erm...thanks ES. But I really need to confirm whether this is the final state of the trades when u took the loss: http://www.elitetrader.com/vb/attachment.php?s=&postid=790728 . I also need to know how much Interest total you earned during the test period. This will give us a clearer picture of much how % of the profit comes from interests. Like you were when you started trading C&C, I'm not really interested in predicting market trends a.k.a. gambling. Seriously this sounds like you have added some discretionary trading/betting edge to this system. Hmmm...do you think trading this without the discretionary edge, just following the rules mechanically would yield the same returns?
Here is the spreadsheet. The last state was 07/19/05, not the screenshot you have shown from 7/14 (note the date on the screenshot itself) The problem that I have to break out the interest and the trading profits is very hard, because when I close a trade it takes the interest as a line item. The marketmaker pays interest hourly...that why it is important to get back in if you want to hold your current exposure. The daily interest is on the postions open and held into the next session. If there is an intraday trade it pays the interest out at the time the trade is closed on an hourly basis from the last interest payment. You can verify this on the activity tab in the screenshot after each closed trade. You can also see at the top the daily interest paymants at 14:00 on 07/20, 07/21, 07/22 and 07/23. Michael B. P.S. Yes I do trade this system and the asterisk's mark those days on the spreadsheet (offset trades or take profit trades).
Remiraz There is no predicting! This is a money management system. mode1 When I take off losing trades with winning trades there is some profit (I evaluate exposure at this point and sometimes I do not put the trades back on that I eliminated, but lets not discuss this as you will be totally confused). mode2 If all of the positions are showing profit and I have no losing trades to skim off, then I take the profit at the rate of 0.50 per 1k units held and then re-enter (I use a pyramiding method of re-entry, but lets not discuss that now as you will be totally confused even more). Michael B.