Welcome to ChartistsUnited
Would like to just post this evening's trade.
My copy of SnagIt has expired ...
I had one of those too, recently.So I guess you want to know as you may have been there too, huh.OK, Although I think it is unwise to make a carbon copy of me, I 'll give you a little sketch for your education.Yes, it is possible to be caught in a sudden impulse against our open positions sometimes.If that was at scout levels then the response is easy. You figure it out yourself. Its already given in the thread.If it was when we are at rescue mode or attack mode, then a little discomfort is likely, this is the MO. When a counter impulse wave hits, the move are very swift, sharp and directional, normally against our position. If such was in our position I call it windfall profit and I initiate profitaking procedures to regroup for a strong skew attack later. .If such was to my detrement, I call it a @#$% position and I take out the last attack size from the market at a loss, and allow the remaining positions to "bleed".I then would go back to the charts to check if the impulse is "contained" within the scope of the trend. Normally it would have killed the short chart trend and indicated reversal. It would be good to see if this was so , in the hourly charts.Then I scan through the other short charts up to the hourly to find the point where the impulse is not reversal to continue a level up rescue, if it exist.Otherwise, if the hourly chart is impacted the next rescue is 1 level up from the last cut loss size and RESCUE IS IN THE DIRECTION OF THE IMPULSE , this means that the open positions are reversed, as the bleeding stops and built into position as the volatility wanes, normally in such instances, the retraces would hardly be 30 % normally 10%. So the reversal is executed in stages swiftly as the bleeding slows and as soon as the next wave is "felt", the rescue "last+1 level up" is pumped into the market to rescue.Please be aware that this protocol could expose your book up to 30% in the process. therefore do not overstay the rescue. Bring it back to below 10% as soon as the impulse wave slows off , in volitility. Although, the impulse will continue in lesser volitility, it is unwise to carry high exposures, cut back to a smaller spiral , that you may have possibility to mount another attack, if and when it comes, without spiralling the book to oblivion. This is risk management and it is used to supress the "scorpion" ie greed.The increased risk is necessary to turn and recover, but NEVER find excuses to stay at the increased risk level. If you do your next stage, exposes full book. AND if you are wrong, you shall become rogue trader.This is no recommended for newbies and those who have not created for themselves, a foreign capital buffer. For them "bite the bullet , and take the pain."
Then I scan through the other short charts up to the hourly to find the point where the impulse is not reversal to continue a level up rescue, if it exist.Otherwise, if the hourly chart is impacted the next rescue is 1 level up from the last cut loss size and RESCUE IS IN THE DIRECTION OF THE IMPULSE , this means that the open positions are reversed, as the bleeding stops and built into position as the volatility wanes, normally in such instances, the retraces would hardly be 30 % normally 10%. So the reversal is executed in stages swiftly as the bleeding slows and as soon as the next wave is "felt", the rescue "last+1 level up" is pumped into the market to rescue.
Please be aware that this protocol could expose your book up to 30% in the process. therefore do not overstay the rescue. Bring it back to below 10% as soon as the impulse wave slows off , in volitility. Although, the impulse will continue in lesser volitility, it is unwise to carry high exposures, cut back to a smaller spiral , that you may have possibility to mount another attack, if and when it comes, without spiralling the book to oblivion. This is risk management and it is used to supress the "scorpion" ie greed.The increased risk is necessary to turn and recover, but NEVER find excuses to stay at the increased risk level.
PS Margin calls - understand that fxdd liquidate positions at 100% of leverage, ie no position would be allowed to go beyond -100 pips. Hope I interpreted this correctly.
Level 1 = 1,1,2Level 2 = 4,4,8Level 3 = 16,16,32
Quote from: jjs on March 04, 2009, 08:30:12 PMPS Margin calls - understand that fxdd liquidate positions at 100% of leverage, ie no position would be allowed to go beyond -100 pips. Hope I interpreted this correctly.I don't think you interpreted this correctly, and I just blown a US$10k (demo :p ) FXDD account to confirm:1. When the margin level reached 100%, meaning all the equity (last closed balance net off any unrealised P&L) are used as margin required to maintain the current positions. This mean that there is no more free margin. Therefore FXDD will liquidate all open positions.2. When that happens, all open drawdown will be realised and become actual loss. Since all positions are closed, the margin used to maintain these positions previously will also be released as "Free Margin". This means that the account balance after margin called though will be greatly reduced, will not become zero.3. There is no limit on the number of pips a positions can go against the traders, as long as there is still free margin available, FXDD will not liquidate the position.
1. From what I understand, fti refers to the above levels when he talk about when he was employed and trading FX for the bank. 1,1,2 is for junior traders, 4,4,8 is for senor traders, while 16,16,32 is for even more senor trades. There are not the fixed levels of attacking lot sizing ratio.2. The normal way of attack is the fibo sequence of 1,1,2,3,5,8,13, I think this is the spiral in; while later closing out 13,8,5,3,2,1,1 is the spiral out.3. Though fibo sequence is for reference, the actual attacking lot size multiples can varies according to experience and chart terrain. I have seen someone doing -1, -3, +3, -3, +3, +1 (scout 1, attack 3, unwind 3, attack 3 again, unwind 3, close scout, see attached chart). The main point, I think, is to start with a small scout, and pyramid up with increased lot size as chart terrain permits, and unwind when momentum is lost. Going from smaller scout to bigger attack, and even bigger attack when there is opportunity.4. The increasing lot size sequence has the characteristic of tackling ranging and trending market. In ranging market, we don't have much chance to add more layers of attack, say just can do 1,1 & 2 then price action make us closed all. However, if our initial opinion of a "ranging market" is wrong and price move from range low above range high (breaking range) and trend up, the initial established 1,1,2 can now acts as a profit buffer to added further attack of 3 or more. Even 2 was closed at range high, the balance 1,1 can also act as profit buffer for further attack of 2 or 3.5. If the lot size if weighted heavy at the front (scout) level, it will put more pressure on rescue if scout is wrongly deployed. This may extend to require precise location of scout deployment, which will become limiting in selecting entry opportunity.6. Remember the option of leaving the scout in place after unwinding all the attacking army? This way the scout can have the opportunity of riding a longer trend move, while the 2nd wave of battle is out of scout's range. As you know, trading longer time frame, required larger tolerance of price move. In order to keep the risk small while having relatively larger price move in longer term trade, lot size has to be small. Thus scout is small.7. Just as what I told my friend, the beauty of this trading method is: you start with a scalp; if you are right, ride a trend; if you are wrong, rescue; if you are dead right, leave scout along the way to pin the major price move.
Hi auxesis,.I spiral within spirals, but this is complicatedThere are no rules, It depends on experience.The change is dependent on several factors,form, depending on the rhytym,shape, depending on the volitility and sigma,book, depending on foreign capital levels,When aggressive, I skip rightwards levels of progressions,when defensive, I skip leftwards levels of progressions.That is why you sometime see me stay a progression, a few times , before moving along. This stay is the precursor to the mode change that will come by. This is not easy to understand, unless you are very experienced with the MO and MM you are being introduced to. When you become more season in the methodology this tweaking , it just comes. It like a natural development to another stage of skills.It is difficult to explain, this further takes out any rigidity, and that the risk taking shifts more and more to experience from the initial MO. But for many here, the initial basic AOW MO is still not within their grasp, yet.regards
