at anyrate, if you are long eur.usd and long usd.cad, at 1:1 you are just long eur.cad if you are keeping score in usd when one pair gets larger than the other one then I don't know what you are
Very true, but after giving you the same argument the other day, I just realized something. Yes, I could just go long, EUR.CAD, but to do that would require me to exit EUR.USD and renter with two EUR.CAD. Its less expensive to simple add on the USD.CAD. We each money manage in our own way. In my case, so as to ensure I lose no more than 600 pips on this trade, forced me to transfer money out of my account into my other trading account. Also, since my trading account is in USD, I think there is a value to maintaining the USD base in each traded pair. I could be wrong on this, however.
so for instance, all 4 pairs I have on now are showing me a loss, and except for 1 they are all 1:1 now what? it's unusual for all 4 to be losers so about all you can do is put in a limit to add to losers and stops to add if it moves in your favor just don't ever let that one big loser become your largest position and it isn't that easy, it can happen before you know it
so far MAY is profitable, but not by much. At this rate it will take me all of 2013 to take out the 2012 high. started running my old system in the paper account with some new tweaks, so far so good, the old system just puts it on with a stop the drawdowns are severe, but it allows me to trade larger size, and get more lopsided on the spreads profits are taken when they get so large that if they were losses, I'd be sick to my stomach size is constantly increased or decreased otherwise it's about the same as what I have been doing trades 10 pairs aud.cad aud.usd eur.aud eur cad eur.gbp eur.usd gbp.aud gbp.cad gbp.usd usd.cad with 4 on a time sometimes there is some pretty ridiculous cancelling out downside is, it requires a long strong trend from time to time, and you have to buy a bottom or sell a top downside is, you enter at the market and exit on a stop, and that spread can really add up upside is, you are protected from getting on the wrong side of a rare long, strong trend it's still all 90% money mangement and money management is just a polite way of saying "size"
you just never know how these things are going to turn out at the moment, my best position is short aud.cad not something I would put on if I was in my right mind
So size matters? urrr.... Money management matters? Funny, that money management is the primary cause of fights in marriage. .... or was that size?
Forex Traders, I just wanted you Oanda users to know how easy that platform makes it to trade with Oldtime. This is a classic thread. As you read take away this: the whole idea is to never let your largest loser also be your largest position (and it can happen before you know it.) You know I miss some of the veteran traders that visited here. Oldtime may have been the greatest Forex trader on earth. ES
This post from "Truth_" might be a great read to put together with "Oldtime" street smarts. ES https://www.elitetrader.com/et/thre...half-your-thoughts.314846/page-3#post-4542756 The second, seek to add to an existing profitable position, in a long term trend, in order to multiply the profits of the trade. Key to this strategy is moving the stop loss along with the trend (not a trailing stop) so that the amount at risk never exceeds the risk of the first entry. In other words the stop loss has to move beyond the break even of the previous entry, so it has zero risk, and then another risk can be added. Applied judiciously in a long term trend, this strategy produces overwhelming results. Best case I ever had was 9 trades, maintained the nominal risk of the first entry throughout. Approximately a five times better result compared to a single entry trade (8 of the entries are closer to the exit, so there is diminished effect). 500% increase in profit, with no additional risk.