Glad you are enjoying it mate ... knowledge is power and wisdom is the essence of our being I love discussing things with all of you even if it is purely for intelecual means. However, come Asian open, I'm out to make some real $$$$
Ideally, on the winning side (long or short), I prefer the Martingale Model: 1+2+4+...contracts locking in profits at each level and doubling if it breaks through that same level (Level based on daily/weekly pivots divide by 2 i.e s1/2,s1,(s1+s2)/2, s2,...similarly for resistance On the losing side(short or long), just 1+1+1+...at s1,s2,s3,... or r1,r2,r3,... at the end of the day/week, I want the net to be positive i.e a profit Anyone here into Averaging Optimization & Martingale/Kelley Variation Models applied to the same currency pair but with Diff Accts? which must be adaptive (optimization varies from time/position size to time/position size)
"martingale" is a dangerous word in finance. "increasing risk" however is what my soil is made of ... but thats aan etirely different story that has nothing to do with this thread I'll probaly be a bit busy this week, but if somebody is willing to start a thread entitled "the merrits of increasingrisk after a loss", I'll be sure to contribute my 2 cents in due time. Happy Sunday all and all the best for the comming week
Hedging FX for commercial transactions is an etirely different realm from that of the speculator aiming for profits on market movements. ... Hedging for commercial purposes merrits a thread of its own, but I am nor competent nor interested in developping much in that regard.
Let me give you some food for thought for a NEW THREAD. One of the principles on which my system is founded upon is that "gains must be not only larger than preceeding accumulated losses, but must also be accumulated at a faster rate than preceeding losses" ... some food for thought for a new thread
Anyone up to some comments over there ? : http://www.elitetrader.com/vb/showthread.php?s=&threadid=78779
Agreed,this is an extremely risky method ... Looking at ways to reduce exposure gradually... winning side: Cycle of 1+2+4 -> take profits at 3 levels (half of s1,s1+s2...) revert back to 1+2+4 after 3 levels if trend continues If trend reverse and this becomes a losing side, just do the 1+1+1 as usual but at calculated distance that equates the numberof contracts of the original losing side(which may become the winning side)