Rules for Cash & Carry (Retail Traders): 1) Start out with any amount of capital. 2) After funding, ask for a Sub-account, name it cash, so now you have two accounts. 3) Split your initial funds into those two accounts The idea is to have 6 times the amount to trade with in a cash buffer type of account, AKA the "Gambling Meter". For Example, if you have 7k to trade with, put 1k in trading and the remainder in cash. To transfer between accounts just use the transfer choice in the platform. Your cash earns between 2.3% - 2.8% APR, assuming you have a USD account. Set the Leverage at 50:1 and restart your puter'. 4) Open up three Charts, AUD/JPY, GBP/CHF and EUR/HUF and save your settings. (tools/save current settings) It's been easy so far, now lets continue: 5) Now, this part, might trouble you. You must "scale in" 1k units per $100.00 in AUD/JPY in your trading account over a few days or longer if you want to begin correctly. It will make your "carry" easier to manage over the months to come. There is not a clear rule for this and it is discretionary. You can also just get in fast to begin your interest earning account at max from day one. Simply Enter in 1k units per $100.00 in AUD/JPY in your trading account at a time and try to get one PIP improvment on each entry. Split up the opening trades with your trading dollars in each pair. Use this spreadsheet for your base proportions and scale in, beginning with AUD/JPY. Start by entering in with 1k units of AUD/JPY and the spreadsheet will tell you what to enter in with on the other pairs. 6) After step #5 is complete, transfer some cash over to your primary trading account, to cover the possibility of the "Average Down" limit orders that are going to be placed in the next step. Use the "Suggested Transfer" column in the spreadsheet daily. 7) Use the spreadsheet here, and enter in a limit order with the next Average Down entry at the increment indicated with the Base Proportion & Increment Finder. You can exercise discretion here if you wish, and glance at your charts and at will enter in your orders. Try not to space your orders too close together. Almost done, just some finishing touches: 8) Look under the trade tab and sort the P/L in descending order, by clicking the header, and if you notice a profitable group of trade(s) that can cancel a loss at the bottom of the list â¦Trade it, but wait to be net profitable with that exchange, preferably at a higher rate than the 25% APR. You can also take profits only by using the Positions tab and with two clicks to close out a position that is profitable. 9) If you do #8 above, then you must re-enter some trades immediately to get back up to the 25% APR earnings capacity. Reference to the Base Proportion and Increment Finder in this spreadsheet. 10) As your balances grow and your unrealized changes, transfer on a daily basis the monies accumulating, to reach the 6:1 ratio discussed. As time progesses you will find opportunities to compound the daily injections of interest into your primary trading account after you FIRST meet your 6:1 requirement. Distribute those excess amounts into average down trades. 11) Lastly, you can draw horizontal lines on your three charts to give you a visual where your average trade price is compared to the current price. You can find your average trade price under the positions tab in the platform. rev 07/11/05
Today's Trades (Monday) New "Gambling Meter" Goal: 6:1 WebSite: www.ElectricSavant.com Blog: www.ElectricSavant.com/WordPress ZipFile:
I appreciate those words of encouragement. This is what I feel is "being a member" of the Trader Family is all about. Posts like this warms my heart and gives me enough energy to make it a little further. As far as the Website...lol it is primitive, because I do not sit down and learn HTML and Java (I learn it in pieces from www.htmlgoodies.com ). Please excuse the irratating "Hello" and "Laugh" when you open the site, as I recently learned how to load a wavefile to the website server and link to it... want to figure out how to get them into Java "mouseover"... The Blog is a package deal I get from my WebService. ($95.40/year) www.ipower.com This Journal is courtesy of ET, and both Wifey and I are honored to be guests in this community. They make all of this possible. Thank You ET and dalodoma. Michael B. Please be ever-so-careful trading this system. You must understand the rules and do not geometrically over expose yourself. Please take heed and get that gambling meter to 6:1 and start out with scaled in entries at $100.00 per 1k of AUD/JPY with the other pair proportions respective to the spreadsheet. My heart simply cannot take being responsible for traders blowing up. I have confidence in this system, but I find that most traders want to go too fast. To feel comfortable, if you need a "Gambling Meter" of 10:1, then do it, you still will make a fantastic yield on this low labor system. Controlling DD and the ability to follow that price in a 10Y trend through TIMING, cross trading and scaling is what it is all about. Indirectly, I am teaching you timing, that following the spreadsheet forces. As you observe the cyles and how the swings occur, you will be able to imagine these three instrument as "a blended, one line chart in your head" and will be able to put it all together, as I do.
Hi, Thanks for your prompt reply to my earlier PM. I was going to post it here but was unsure if you would mind. As I said I am interested in the scaling in bit as in my own system I just go bang in and bang out. How does this protect you in terms of my scenario below. I am currently carrying (in a small game account) EUR/HUF (Short), NZD/USD, EUR/CZK and USD/JPY (All long). This is a combination that there was some discussion about a while ago as they give (relatively) good interest with zero (or close to) exposure to Euro and USD. This has not done to badly with about 40% growth on NAV in the past 6 months. What I am not sure about and would like some advice on is how to handle profits/loss and if scaling in and out might help. For example USD/JPY in black and NZD/USD is red at about the same amounts. Do I take the profit on the USD/JPY and re-enter again and wait for the other one to come back again or do I get rid of both to end with a zero sum game but with a nice little packet of interest having been taken over the past couple of months. Is there anyway that you can see a scaling approach protecting or helping one in this scenario. Thanks for the advice!
If I understand you. Yes I think you should not be afraid to trade. The idea is to chase the current price with the average price to prevent a slow bleed of a long term trend. However with your approach the weighting and the neutral correlation will help you stay a float. So Yes and no. I personally do not like to get my average price too far away from the current price. I also enjoy to practice my scaling abilities to capture those precious pips the market is offering. Thank you for posting to this Journal, instead of PMing, as this uses my time better than a one-on-one discussion. I hope this helps. You must excuse me..I am getting real close in this system to do what we are discussing. Michael B.
Electric grabbed a screenshot...getting close folks. Look at the plus at the top and the minus at the bottom...can thay cancel each other?
The market maker widened the EUR/HUF spread to 100 just now...So that halved its profit...will need to wait a bit for any balancing I had planned, but it can still happen. AUD/JPY seems to be strong, we shall see if its strong enough to take out some losing GBP/CHF positions. Michael B.