[dpaterso]

Good (Saturday) Morning,

Hello Akram,

As far as my 'findings' are concerned with Parabolic SAR at Delta:

Don't get me wrong - I'm NOT saying that you should change how Parabolic SAR is calculated or plotted IF IT IS CALCULATED CORRECTLY (even IF this was an option to you). What I am saying is that I think that Delta's calculations ARE WRONG i.e. according to 'the book' when Parabolic SAR is calculated it is only the HIGHEST HIGH PRICES that are (supposed to be) taken into account and from what I can see Delta's 'SAR' is calculated using the HIGHEST CLOSING PRICES for THEIR 'SAR'. Now the fact is that there obviously is some merit in doing it this way (whether it be a mistake or not) i.e. there are (like I said previously) far less 'whipsaws' and Delta's calculation of SAR keeps you going with, and in, the trend longer HOWEVER it would 'appear' that because of this 'possible mistake' you are getting entry signals too early and stop and reverse signals too late. That's why I need some input from 'the man himself'.

As far as asking your broker about this is concerned - I would not waste my time. Delta is THE ONLY broker that I know of where your queries make it past customer service to the IT department (I know this because they have already (in the current version of the trading platform) added one or two of MY suggestions to the software, and will be adding one or two more of MY suggestions to the new version). For the most part - at 'other' brokers - you are pretty much talking to the 'broker equivalent' of a 'call centre agent' and are more likely to get the question 'Parabolic WHAT?' from customer service than 'Oh yes - of course - our Parabolic SAR uses the highest high price while in a long trade to calculate Parabolic SAR - is there anything else I can do for you?'!!!

As far as your 500 'green' PIP's and your 250 'red' PIP's are concerned - yes - that IS HUGE and well done. I probably DID have all those positions open until two weeks ago and would probably be sitting in the same place you are right now. HOWEVER - the object of the (our) 'excercise' is to 'eliminate' those 'red' PIP's 'from the get go'. Would it not be FAR better to ONLY have the 'green' PIP's right now??? The kind of trades I'm hoping we are going to get from now on are the 'text book' trades where NOTHING can go wrong (I have attached a chart to demonstrate what I reckon is going to be a 'text book' trade next week maybe even as soon as Monday and THESE are the kind of trades that I'm hoping we will start taking ALL THE TIME from now on). In other words - the object of the excercise NOW is to end up with (at any given time) for example - out of 44 positions / pairs - hopefully 42 of them showing a profit and maybe only 2 of them showing a loss (and these 2 only there because you 'broke a rule') - as opposed to 22 of them showing a profit and 22 of them showing a loss and hoping that the 'nett' is a profit. Remember (I have proved this already I think): your 'nett' could just as easily be a 'nett loss' as a 'nett profit' depending on which pairs you are trading at any given time. Like I also said before - unless there is a way of 'weighting' the pairs against each other - you could land up in the 'sh1t'!!! In other words - let's assume that your lot size is 100000: 100000 units of GBP/ZAR is a whole lot different position than 100000 units of EUR/USD and if, let's say, GBP/ZAR is showing a loss then EUR/USD has to be showing a 'disproportionate' profit to cover the loss on GBP/ZAR. So - I figure - we either have to 'weight' the pairs against each other (by varying the lot sizes) OR we ONLY take 'text book' trades!!! This would ALSO have the added benefit of reducing the amount of margin or capital needed for the simple reason that you don't have to 'carry' or 'cover' a 'sh1tpile' of losing positions.

Again - as far as the attached chart is concerned - imagine that every single trade that you took started out like this one (possibly could) and after waiting for this type of setup on each and every single pair (44 pairs) and ALL of those positions sitting in a profit at any given time!!! Now THAT'S trading!!! Look how many days I've waited for this (count the 'dots')!!!

Let me put it this way: if trades like THIS turn 'sour' then I might as well make a nice big poster listing all the pairs in two columns - one column to 'buy' the pair and one column to 'sell' the pair. The procedure then would be to place such poster on a dartboard once a day, blindfold myself, spin around three times, and throw a dart at the poster and, depending on where the dart lands, either buy or sell that pair. If I miss completely then that would be a signal to stay out of the market for that day!!! What do you think???

Actually - now that I think about it - I'm sure that I read somewhere - that it's possible to trade like that i.e. I read somewhere that because of 'our connection to the universe' and 'fractals' and 'stuff' like that that it is quite feasible to just walk up to your computer and take a 'random' trade i.e. no charts no nothing and then just keep repeating the process every day. Apparantley it can be (was) quite successful if I remember correctly!!! Chances are good though that this person was ALREADY a multi-million dollar millionaire and had nothing better to do with themselves!!!

Anyway - PATIENCE is STILL THE KEY - EVEN MORE SO NOW - DO YOU GET THAT DALE!!!

Regards,

Dale.