finally, it's going like clockwork

Discussion in 'Forex' started by oldtime, Apr 8, 2013.

  1. Well you're increasing size and reducing R/R by placing the add and increasing the potential loss on the increase. Unless it's explicitly an increase in vol in the underlying (accounting for) then I would not do it. Just IMO.

    My feeling on adding is that you should allocate to an initial size commensurate with your edge (Kelly, et al).
     
    #11     Apr 8, 2013
  2. Your take is always appreciated.

     
    #12     Apr 8, 2013
  3. You need strong momentum for this and at the first sign of it slipping away you must exit, it's the only way.
     
    #13     Apr 8, 2013
  4. ok, I'm flat

    these kind of trades don't happen that often, but it allows me to reset

    when that net liquidation value hits that nice round number target, I spring into action and take it no questions asked

    ib TWS makes it very easy, I've done it many times in the past

    hit "cancel all"

    go to "fx real" in the account window

    right click on one of the currecncies and click "close all non base currency balances"

    it will ask you "are you sure?"

    and then close everything out at the market

    you know you got it when you look at your margin, and like right now for me it is 0.05 USD.

    this one just creeped up on me, hit it after hours on a WED evening

    it's a bitch when you do it on a Wednesday morning, because you never know what you are going to end up with

    the main reason I wanted to get flat was, my short eru.usd was quarantined because it was my largest loser (even though it was my smallest position) and according to my rules it would never get added to again unless something else really went to hell.
     
    #14     Apr 10, 2013
  5. so maybe I have answered my own question

    when it hits the target get flat, zero, zilch and reset

    in a high energy profit situation just trim back to the minimum starting positions
     
    #15     Apr 10, 2013
  6. well, that didn't take long, I'm now long some aud.usd at 518

    man, that was one big orange candle down on the 15 min one day

    oh well, I am back in the game

    I never even got a chance to get completely stoned

    everything else got cancelled and replaced

    since everybody else seems to be so enfatuated with eur.usd, I am trying to sell some at 1.30745
     
    #16     Apr 10, 2013
  7. everything except the Cad got hit last night, I was sleeping like a baby, since I have been working on the garden out back during the day

    I don't like it any more than you do, but I just had to sell the usd.cad at the market to get evened up

    so that makes me 1:1:1:1

    long aud.usd
    short eur.usd
    short gbp.usd
    short usd.cad

    with a limit in on everything

    except the gbp.usd, which at the moment is quarantined, because it is my largest loser (but if eur.usd takes first place in the losers race, the eur limit will be cancelled and I'll try to sell some more gbp.usd.)

    aw man, that happened fast, before I could even post, my eur got hit, so now it is my largest loser and twice the size of everything else

    oh well that puts gbp back in play, I'm short from 5345 with a limit in to sell the same amount at 5410
     
    #17     Apr 11, 2013
  8. short eur got hit at 3103, it don't look good
    makes my average 3088
     
    #18     Apr 11, 2013
  9. Short 3083 here but still have plenty of wiggle room for averaging in.
     
    #19     Apr 11, 2013
  10. ok, but don't try that with just one pair. It can drive you down to the depths of despair. My short eur at 3088 is my largest position and largest loser. It will never be touched again, off limits, quarantined. Until it starts fitting in to whatever else I have on.

    I've been short that eur for weeks now, and it just keeps going up. The only reason I am still alive is because it eventually became my smallest position.

    one rule that turned it for me to the better is, "never add to your largest loser." Just that one rule alone can save you a lot of grief.
     
    #20     Apr 11, 2013