Especially at a price point where price has crossed several times.
A pivot point even.
I have in my current account almost 15K It started at 10K.
On my 15K I currently have 11 minilots and am down unrealized 800 pips.
but from 5/1/08 I am up about 1075 pips. My margin is 3.83%.
Catastrophic is when you run out of margin, your margin useage exceeds 100% and your broker sells you out forcing you to realize your unrealized loss.
I am at 400:1 leverage. .25% equity in my trades. Well if GJ reaches 189 again you know it is going to bounce up. As long as it would take to get that low you can be making 3000 pips a week scalping them and banking pips on your longs hiutting thier tp targets. Well the idea is to have one loss leader and if the rest turn into loss leaders who cares, keep collecting interest.
Right now if I closed my position I would be up for the month almost 300 pips.
And I am already up almost 5000 pips on this account YTD. putting more money in is an investment that if spent on GJ lots will yield 30% interest per month on your margin tied up in the trade. YOu always want to have lots in range to dump as it is going up. Sometiumes you take 11 pips sometimes 21 or 31. And even you can get daring and hold one or two. After you start making profits and are working on profits you can hold them longer. But I try to scalp them every change I get.
So if I have higher longs sitting there uphigh waiting for price to retrun.
NOw I keep buying in the dips one or two and then selling them at 6 or 8 or 12 pips and then buying again at the same price. Or of ots going up I scalp up, which isn't nearly as fun as scalping down. I place orders down low to get long and hope price dips and grabs them. I heavily rely on psychological numbers in GJ like the .00 and .50's, fibinocci numbers in all ways, sma's as support and resistance levels with fib numbers for time periods like 21 and 55 not 20 and 50. I am always getting new positions but i am dumping them for small profits when price movemment is rangey.
RIsk level at 2% is ideal but you have to push it sometimes. But this margin useage management is the KEY to success in this. You can go 4% 5% but you get over 10 and suddenly its 25 and at 25% you are in trouble but not really
(but thats what you have to think to get this to work so you can live a run down and get more money in if you made an error in your judgement and too many too high. That why demo trading this FIRST is BEST before riskying your MONEY as I dont use SL's. But I think you will find this works.
I know it does. And I think some other people here are starting to figure it out and all sorts of little things they never have thought of in that way before.
Quote:
Originally Posted by bbruno
Elijah,
Your system is really outstanding, I would like to ask few questions:
- how do you identify begin and end of the cycle?
- can you please give some example about the used margin/ position size, where to place orders(I know each 9...), but you mentioned all the time clever MM - please help with this stupid question. Just simple example - account with 10K, so how many positions I can open in a down move and on which levels, what should be the catastrophic scenario? even if GJ will reach 189 again? Should I keep all my loss leaders and collect interest? and doing nothing - no new position even for better price? Or add some money to my account and build new positions? I can imagine that I can very quickly reach my 2% risk level, what to do in this case?
I like very much your excellent examples about mortgage, bank strategies and open mind - which was not discussed yet here. Many thanks for your time and for sharing this system.
Best regards Bruno
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baby pips?
Scalp
Linear Mode
