Today's Trades (Sunday) Introduced, "Available Margin Goal" and "Suggested Transfer", Columns. WebSite: www.ElectricSavant.com Zip File:
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. 3) Segregate 5.85 * amt of funds into the Cash sub-account. For example, if you start with 5k then put $4,270.00 into Cash and trade with $730.00. To transfer between accounts just use the transfer choice in the platform. Your cash earns around 2.3% 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 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 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 the 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. 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 and increment finder. You can exercise discretion here if you wish, and glance at your charts and at will. 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 the spreadsheet. 10) As your balances grow and your unrealized changes, transfer on a daily basis the monies accumulating, to reach the 5.85:1 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 5.85:1 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.
One unique benefit of this system is that it can complement your current strategies and add a steady stream of profit through diversifing your portfolio with currencies. I am hoping Electric can keep that DD to low, as I think that is the key to this system, and that also makes it easier to achieve a Max Risk to Profit Ratio of 1:4 (the goal of this system). Wifey
Electric, I'm trying to understand your ideas on cash and carry. Why do you need 2 accounts? Thanks for posting this for us and good luck in all your trading, DS
Hello DS, Yes, Preferable a dealer/marketmaker that allows you to transfer instantly between the two. Now, some, might argue that you could use one account and instead of setting the leverage at 50:1, you could use 10:1 in one account only. I prefer cash in one account as I can "slide" easier between the two accounts and make slight adjustments and cause something like a "floating" leverage and change it on the fly. Also, when looking at 50:1 leverage in the platform, it is easier to understand, "margin used" and "margin available", because 50:1 is half of 100...where 10:1 is harder to "see" values on the fly (its more math to do in your head)... And, its my pleasure to share...and good trading to you. Thanks for reading. Please ask any questions...any question is a good one...no such thing as dumb questions. You must understand this is a difficult set of "sliding scales" to explain and teach. But when you "get it" and it clicks, it is ALL so simple. You will be able to use this "way to think" in your other trading endeavors and methodologies too. Its funny this is really not a "trading system" its a "money management" system... Michael B. P.S. The way leverage works and margin calls are determined is not as simplistic as I am explaining. The cash to trading "slide" is much more efficient and is not really 10:1 leverage (less) and will not trigger a margin call prematurely either. Also, please note with one account trading it is impossible to increase leverage if you are "all in" without a cash injection.
............................................ Magna said, Make sure there are no personal attacks or abusive comments, stay on topic, and no free recruitment/advertising and you won't ever have to concern yourself with getting deleted. ............................................. I don't know as that is quite true Magna. I suggested ES use his system to earn his own money instead of searching for sponsers (to which ES replied, "Whatever" - and that post was deleted. What, may I ask, was the reason I was deleted?
lar, Your point is understood, and my short response, was because you are right when you are right. I have refrained from violating ET policy. I still need more capital, but perhaps there are other ways, other than trying to violate ET policy. I regret that, as I have grown accustomed to this place. I believe in my heart, if its my destiny, doors will be opened and I will get more capital, if not, ok I will trade brick by brick. But it is a joy sharing and helping other traders along the way. Hey, you may see me as a sponsor here, offering the ET gamblers anonymous system exclusively for ET. (Perhaps Baron would not allow ET's name to be a part of a trading system, however) I do not know, perhaps managed accounts is the way to go... In any event, I have a minimum of two years trading to get my track record established! so you folks are stuck with me and my Journal...haha Michael B.
For those of you that prefer to go to the website to see the spreadsheet here it is: www.Electricsavant.com