Today's Trades (Wednesday) An Active Day. I did some trading to get the correct proportions of exposure in the three pairs. Being that some pair move more pips than other pairs, it is important to keep the correct proportions. I have too much EUR/HUF and will be closing positions as they become profitable and increasing positions in the other pairs to hold the yield. Introducing Ideal Proportion Column, Margin Available Column and goal reminders. Moved Monthly projected column to the top up in the statistic bank. Corrected small error in the Current APR calculation (it was counting the first day) Corrected the trading days field to not calculate the first day. Revised C & C Rules Tab. EUR/USD has the double trade size still on the short side...
The Ideal proportion idea came to me last night. I seem to play back a lot of Tripacks stuff in my head... It seems System #2 (Cash & Carry) is maturing rather nicely....(there is not much more that can be improved upon that I know about, other than reducing the EUR/HUF exposure and getting it in line with the spreadsheets' Ideal Proportions and getting the Cash to Trading Ratio up to 3.50:1) It's just a matter of time before cracking System #1 (Volatility Grabber) it's just the labor stopping me and which and how many pair to trade...The trend weighting seems functional, what do you folks think? (The nice thing about Forex is the trends are more identifiable) Michael B.
Today's Trades (Thursday) I was able to achieve Ideal Proportions (that was fast!). I will post Screenshot shortly. Margin Available Goal reduced to $200.00 now that Ideal proportions have been achieved. Corrected per hr calculation in statistics bank. Added some statistics in the Column headers. Revised C & C Rule tab further Still double unit size on the short side of EUR/USD Volatlity Grabber system in testing.(Forward Test coming soon)
The key to carry trading like the methodology in System #2 (Cash & Carry) is trade size, exposure and diversity. If you are to follow the current price around the chart, you need multiple smaller trades and reserve capital for wide swings and correct proportions. You know when the NASCAR pit crew adjusts the suspension or changes tires during a race, it does not take much to bring the car in balance with the driver. Your mission is to get in tune with your style and adapt it to the system and instruments you trade. When you get a match, there is nothing like it! Good Trading to you...All of you... Michael B. P.S. The projected return is a high 47% for a year of trading using 6 minutes a day, but as the increase to the correct "cash to trading" ratio builds (3.50:1, currently 1.76:1) the yield will "dial down" and along with that so will the "gambling meter". To correctly trade this with a goal of 25% a year after payment for labor (understand I pay myself a high salary) would mean that the gambling meter would be at acceptable levels. It just that 20k would be the best to start this system with not 5k...You see as the balance grows, the labor becomes less of a draw off of the yield...The choice will eventually be to increase the payday or dial down the gambling meter even more. Do you now understand why this way of trading becomes less and less gambling as time goes forward? Do you see it? I will continue to post the trades here as long as it takes and as long as I can? Please read the opening post to this thread, and please vote if you have not.
Electric, If you pay yourself for labor, why don't you trade an institutions money with this system and pay yourself for everthing over 25%? Wouldn't institutions be thrilled with 25% APR? Why do you share such a thing publically? How many of your other sytems have you shared here in ET? Why? What's the catch? Wifey...
Because the drawdown can be too high for accredited investors and institutions, even if it is unrealized (just look at the spreadsheet and notice it got as bad as 43.2% in the last 30 days!) . However with the 3.5 : 1 ratio and if the entire amount in the system is used to calculate UnRealized drawdown percents, then it would be high but acceptable. (perhaps higher ratios would be needed in the cash...as the labor would pay me an astronomical income of about 2.5 million per year on 10 million) I would also guess that the Market Maker I use would pay more interest to higher balance accounts..... HaHa, so wy don't I have any offers? LOL Michael B. P.S. but seriously, I am told one year of trading this is not enough...I need a few more years of statements, to attract institutional clients with 10 million to invest. If I were to trade other peoples money again, I would only be interested in big money...(not a multitude of retail clients emailing me, calling me and bothering me, I am a trader not a salesman!)
Screenshot of trade tab. I need to reduce individual trades to be no larger than 1K units considering the 5k traded... I have four positions that are too big. In the screen shot I identified them.. In the few next weeks, I am hoping to be able to correct the problem.