This is comforting to know. I thought I was being too conservative...Thanks Buy1Sell2...my fund is at 1.54 :1 leverage over the weekend. I divide my percent DD into it to give me a number to see if my exposure is staying constant...this is a little homegrown trick of mine, but maybe there is a term for it...spreadsheets are a wonderful thing (I Excel between the sheets, Wifey says). I sleep well and feel enough control to where the market can throw anything it wishes at me. I honestly can trade billions with my system, without any worry what-so-ever. I trade an "always in" positive carry methodology that grids the trades for a bonus. I wrote my system and can hold from 3 pairs to eight pairs at times and I can trade up to an average of one trade a day. I will put on a pair in reaction to the baskets oscillations and it is a constant game of balancing the volatility, while grabbing some dollars during the interest carry, to fortify the balance thus the other ongoing dynamic calculations for the long term carry's. Believe it or not I use ranges and a proprietary use (s) of a divergence of a known lagging indicator to see entry points on the fly, when I am in volatility balancing mode...But I would never advocate the use of a lagging indicator as a sole source for trading sig's. Ranges and indicators should be put into proper perspective. A discretionary componet of a traders system, is mainly just experience. Startegic and methodical trading can be tricky. In the beginning of the year the yield may underperform many roller-coaster type Funds, but as the year progresses the Yield comes shining through, and I can boast that YTD I have had only one losing day (that losing day was planned, as I wanted to keep the DD below 8%). Michael B.
Well you could see that I wrote in the thread: See what I have done.. Where I told him to go long instead of short with the pair USD/CHF The pair was at 1.284 and I told him it would probably rally up to 1.29 and maybe also to 1.2920. As time wore on, it reached 1.299 and I sold my position at 1.294 and made 100 pips profit less the spread. At the time I had only 800 dollar in my account, and I bought one lot, and made about 600 dollar, and I was at the same time short with two lots on both EUR/USD and GBP/USD who all fell in price rapidly by the strong move of USD, which all in all left me with a profit of 980 dollar. From now Ive shorted one lot GBP/USD at 1.7624 and I think it will drop to 1.7650 soon after the market opens again. My stop loss is set at 1.738 as I think there will be heavy selling at this point, and further resistance at 1.760, which would also be the next entry point to go short if my stop point gets hit at 1.7638. I think that traders will likely push the pair below 1.77 and test the bids around 1.761, which would be a point where I close my short position yet again, and go long, and short again where I excpect it to be pushed to the psychologial barrier of 1.75, where I would likely close my shorting position, and wait for the next move as oppurtunities arise.
ohh...that thirty minute edit rule...I have to correct something...I have had one losing day concerning the balance...not the NAV... The baskets NAV does fluctuate intraday, but it has not fallen below a -8% DD...and from day to day can show a loss. However I am at an all time NAV equity high of 6.3% from 11/20/05 and the balance shows an 8.4% rise from 11/20/05...all this never exceeded 4:1 leverage and an 8% DD. excuse me. Michael B.
I need to see exact real time posting ie just after you push the buy or sell button, so we can determine how successful you are. Please begin this Sunday night
Scalpz: You should become a story teller as I really think you described the market in an excellent way. Everyone will lose sometimes, but thats not where ive put my emphasis on in this thread, but rather about being consistent with your profits. Even these traders will lose sometimes, but in the long run they will end up profitable, and thats what counts. However Im not about story telling, Im about making money
The purpose of my postings is to illustrate how expectations and trading can be...I admit I am a junior trader compared to my collegues, but our thread author may benefit from this (he seems to have disappeared). Michael B.