I have done the baby pips school
Timehopper says that price would have to diverge by 1000 pips to blow his account. So he is using his whole account with no stop loss. but i cant use my whole account because sometimes when i am 1/3 into my capital it will close a trade like it did last night
I think you read wrong⌠Timehopper said that price would have to diverge by 1000 pips to cause strong damage to his account, not to deplete the account.
But that is not important, it is the risk that Timehopper is happy to accept.
Just remember, if you are risking 1/3 of your capital, let suppose you have 100 USD on your account.
That is 33.33 USD for risk⌠How many pips are you going to require to reach that 33.33 USD? If you place your stop loss of 3 pips, then your lot size should be 1 full lot.
With 1000 pip stop loss you require that each pip is 0.03 cents, that is 3 nano lots or 0.003 lots. That way when you reach your full loss of 1000 pips that is going to be 33.33 USD.
That is the start, but with low leverage accounts, with less than 1:200 you should also check the margin requirement. On a 1:100 you need 1 % of margin, so for 0.003 lots you require about 3 USD of margin, on a 1:50 you require more margin.
You can give yourself an idea here: Margin Calculator | OANDA fxTrade
This one is better, because it supports more leverages: Margin Calculator | Forex Margin Calculator
Medisoft is correct in this matter. I am NOT using my whole account for this system. I keep my price per pip low ( not $0.03 though :8: ) so I donât have to worry about setting stop loss or take profit levels. On any given day this is not the only system I employ. None of us have a means to accurately predict the amount of time this system will need to produce a profitable trade once we enter. What we DO know is eventually it will produce a profit. With that in mind I keep the majority of my trading capital open for other opportunities. I donât know why your trades close when you are 1/3rd into your balance. It may be a setting you have set or may just be a safety net provided by your broker. Given what we do know about this system and your auto closing of trades I would suggest setting a smaller price per pip. Do not under any conditions commit all of your trading capital to one trade, or enough that it would cause one third of you capital to be at risk. The best case is you will make money but may take a day or two; the worst you will lose one third of your money. Iâll say it again⌠Trade small with this system.
ok thanks for that medisoft
also do you know how many $ per pips is eurjpy
and how many $ per pips is gbpjpy
Thank you timehopper, can I ask how much capital do you have and what is the size of the lots you make for a trade?
Jpy pairs are about 13 usd per pip with full lot
for every jpy pair, they are all the same?
so eurjpy and gbpjpy are the same, so if im doing long eurjpy short gbpjpy i would put the same lot size on both trades?
is there a website i can see the $ per pips for every pair
thank you medisoft
Can someone explain how to set up the chart?
I have installed vitrite and it runs correctly, after that I have opened two mt4 instances but cannot with gbp usd and eur usd respectively.
I have full zoom out on 1 minute chart and set " chart shift " what I cannot understand is regarding âscale fixâ and how to set those properties.
iâm a newbie at forex, but i learn fast. 3 days ago, i came across this strategy and was greatly intrigued. and so i made some backtesting using Excel and charts and these are my conclusions.
download the excel files here:
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w.mediafire
.com/view/?ged15k4ngpiiusn
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w.mediafire
.com/view/?9p1bu1f4kyfh951
[ul]
[li]doing this method, you are essentially still trading EUR/GBP
[/li][li]this method is betting on the fact that EUR/USD and GBP/USD will diverge and converge again. in reality, you are betting on the fact that EUR/GBP is ranging AND the pip difference of EUR/USD and GBP/USD are also ranging
[/li][li]once you realize the fact that you are still trading EUR/GBP and your method of trading really works, itâs far better to just directly trade EUR/GBP to save on spreads
[/li][li]check my excel sheets. i hope from those, youâll be able to understand how i analyze it
[/li][li]check the graph in the file âEUR GBP 1hr correlâ, then open your EUR/GBP Chart at 1hr timeframe and the same time periods as the excel chart. youâll realize that they are directly correlated
[/li][/ul]
so this statistical/arbitrage may not work if in case EUR/GBP decides to make a strong trend.
iâm still interested that you prove me wrong though and that this strategy has a high winning percentage.
cheers! 
note to mods: this is my first post. iâm not spamming. posted the links for the benefits of the members. thanks
Yes, the same. Is just like the usd pairs.
Same question here - I actually just got set up last night - and âwatchedâ for awhile - it seems the latter part of the day charts were very pretty - so I did set the scale to fixed on whatever range each was currently displaying â - and so this morning - both price lines were below my visable chart â I went to re-scale but messed it all up?
Alright, first not to be rude but youâre kinda late to the party. We have already covered the topic you bring up. Please either read or re-read the first 90 pages of this thread.
If you are concerned about âsaving on spreadsâ then you should not be trading in the first place. That is the cost to step up to the table and play. No matter what system or style of trading you use if you are worried about the cost to place the trades then it indicates to me that you need a better system because you are having problems beating the spread let alone earning a profit. If a system has a 30 pip spread but you always beat it and make a decent profit, I donât get the problem. Itâs not like Iâm digging a ditch or hauling bricks to make the money.
If what ever system you use has problems in a trending market, hereâs a simple solution⌠TRADE ANOTHER GROUP. There is no probative value in pointing out it may not work in trends. Especially when you are pointing to only one group (eur/gbp) and only one or two timeframes(hourly). Hereâs a new flash for all the newbies out there, SOMETHING TRENDING IN A HIGHER TIME FRAME WILL HAVE FLAT OR SIDEWAYS AND DOWNWARD PERIODS IN A SMALLER TIME FRAME. (DOW THEORY ANYONE?) Even in a trend on the hourly there will always be opportunities in the 1 min timeframe. which was a time framed used by the person who put this system on here.
Yes, you do in fact create a synthetic position, weâve been over that.
And again I repeat, if you feel taking a one sided trade is better then by all means, go for it and good luck. It seems WE on this thread like to take a more market neutral approach. As far a proving you wrong, go back and read all one hundred pages of this thread. A good number of us have not had a single loss since this started. Some have had a only a few. This is not a get rich quick system. It is a bet small and slowly build system.
I think we are well past the stage of hashing out which system is best. This one works for what itâs intended to do, easy small trades nothing more. Itâs not the holy grail but it works.
Cheers
Here we go againâŚ
Alright, first not to be rude but youâre kinda late to the party. We have already covered the topic you bring up. Please either read or re-read the first 90 pages of this thread.
If you are concerned about âsaving on spreadsâ then you should not be trading in the first place. That is the cost to step up to the table and play. No matter what system or style of trading you use if you are worried about the cost to place the trades then it indicates to me that you need a better system because you are having problems beating the spread let alone earning a profit. If a system has a 30 pip spread but you always beat it and make a decent profit, I donât get the problem. Itâs not like Iâm digging a ditch or hauling bricks to make the money.
If what ever system you use has problems in a trending market, hereâs a simple solution⌠TRADE ANOTHER GROUP. There is no probative value in pointing out it may not work in trends. Especially when you are pointing to only one group (eur/gbp) and only one or two timeframes(hourly). Hereâs a new flash for all the newbies out there, SOMETHING TRENDING IN A HIGHER TIME FRAME WILL HAVE FLAT OR SIDEWAYS AND DOWNWARD PERIODS IN A SMALLER TIME FRAME. (DOW THEORY ANYONE?) Even in a trend on the hourly there will always be opportunities in the 1 min timeframe. which was a time framed used by the person who put this system on here.
Yes, you do in fact create a synthetic position, weâve been over that.
And again I repeat, if you feel taking a one sided trade is better then by all means, go for it and good luck. It seems WE on this thread like to take a more market neutral approach. As far a proving you wrong, go back and read all one hundred pages of this thread. A good number of us have not had a single loss since this started. Some have had a only a few. This is not a get rich quick system. It is a bet small and slowly build system.
I think we are well past the stage of hashing out which system is best. This one works for what itâs intended to do, easy small trades nothing more. Itâs not the holy grail but it works.
Cheers
So - what do you think -
I might be nuts- -it is ok to tell me so - -as I have not made a single trade with this yet, but I am expecting to - so is what I have garbage? or are you guys not getting to the point of a âlarge lossâ?
I did notice a couple early going - -but there doesnât seem to be any lately.
I do realize this is a no lose method â -but inevitably then you will incur a pretty large drawdown - - I have a bunch of thoughts on how to ânot worryâ about it ; but my first thoughts are to accept it - - close out and start over - - so I have put together a few numbers with some assumptions â
Iâd like to know from you guys - - if this is how youâre approaching this or are you just not worried about a loss?
Like I said - I may be really premature with this as I havenât studied nor tried this yet. (I am bored at work and cannot look at charts - so I dream about how it could actually work)
Thanks
Iâm not sure if I agree with the statement that this is a no lose method. I think it really depends on how you interpret and implement the Stat Arb concept.
But before doing anything I think it is important to ask yourself the question of whether you are comfortable adding to a losing position? If the answer is yes, then there are many examples in this thread of ways to implement an adding mechanism while preserving capital.
If the answer is no, then it will be up to the trader to determine how to structure the strategy to remain profitable while taking some losses in the course of trading.
By the way, I donât think there is a correct answer to the question, but how you answer will greatly impact your returns and risk of ruin. Good luck!
Hey Medisoft
With your EA I entered 6 pips take profit, and my trade was going for a long time and the EA closed the trade out at 3 pips, saying P/L PIPs: 3.0 at the top after it closed. Do I need to click something?
Cheers
Just an update guys.
I am still trading non-correlated pairs with great results. I am trading three different groups of pairs. G/j vs g/chf., a/j vs eur/usd and my new favorite g/j vs g/aud these two pair whip up and Down like crazy. So far so good.
Hmmmmm⌠Now that is interesting. I do have a few questions. First how are you choosing which pairs to trade? Second what is the win loss ratio?
My guess is that the win loss ratio is lower than with correlated pairs. But stillâŚVery well done. Congrats on your achievement. 
So far win loss 100% I have only had to add to positions once (I add when I am -40 pips) I choose pairs that are correlated to zero. Usual the scale is 100 to -100 which means 100 runs together -100 runs apart and zero switches back and forth which is what we are looking for in the first place.
awesome⌠good job