Just a little reversal on eu and all our orders are going to be profitable. I also have buy orders and a drawdown of about 13 %.
i had several pairs on a small live account from wednesday, including 3 eu/gu. huge drawdown, then basket turned profitable about 10:00 am friday, cashed out. btw, i make the current eu/gu spread at about 55. that sound right?
just looking at my chart, the spread I have is about 200 pips!
wow! sounds like iād better figure out what iām doing here. i have exact overlay with vittrite, eu over gu, not fixed. when i set it on 1", they are on top of one another. at 5" they are 55 apart. at 30", 315 apart and at 1ā 400 apart. obviously, i have missed something. i will reread the posts, but if anyone knows what iām doing wrong, appreciate the help.
I think it all depends on how you look at the chart,
I open my trade with MT4 at 20 pips divergence,
then if it moves off the chart I then follow it with oandas fxtrade on 5,15,30 Min chartsā¦the 1 hour chart is the most I have had to go up to,
Iām on the 30 Min at the moment though.
Nice! We hold on together. The divergence is real BIG. May the Force be with us next week. 
still learning my way around this method, but it looks soooo promising. heh. looking back at my positions 7-17 thru 7-20, obviously some luck with a basket of pairs that happened to turn profitable.
it looks like the reason we are seeing this wide eu/gu spread is because the literal spread (difference between eu and gu closes) has widened to almost a 3 year high. looking at hour bars, the literal spread set a new high on 7-20 at 13:00, going to 3482. then, the lowest it fell back to was 3453 on same day, 15:00 bar, finishing friday at 3458.
historically, the literal spread has been as high as 7000, back in 1990. from what i can see, each time it sets a new high, it gives ample opportunity to close spread positions profitably as it backs up, sometimes several hundred pips. for me to sleep at night, i will have to set a āfail-safeā stop somewhere, but i do want to give these trades the opportunity to turn around like an outback boomerang! i know kelton originally said he didnāt use stops because he felt he was in a hedged position with the correlation. anyone have some thoughts on this? what would we let it erode to (live account) before we hit the panic button?
finally, i am still trying to figure out how to set up my charts so i can see the 200 pip divergence the rest of you are seeing. one thing iām considering is setting a scale-fix one to one. i have looked back at about two dozen trades (tedious or would have done more) and they were all profitable. some of you have been doing this a lot longer than me, so try to keep me out of the quicksand.
and, yes, may the force be with all those who still have open positions, demo or otherwise. thanks.
Please, donāt mix timeframes with this method. Use only one and stick to it.
medisoft, i assume you were addressing my post above. i used the hour bars only to determine the historical spread. i actually have all my trade charts currently on 1". but, i still feel very unsure about this method and do appreciate you keeping an eye out for me.
TP hit!
medisoft do you center and lock the charts as soon as your trade closes?
hereās my chart , still open,
+$130
$3 per pip at the moment, looks like a 50 pip gap still to close!
TP hit! Very nice wow!
Ruler + Virtual Balance.zip (1.96 KB)
someone posted a really nice tool for this idea. it is called a ruler and measures the distance in pips from the price on a chart to any other point on the chart. if you canāt open this for some reason, it is in a thread currently on page 2 of the free systems. look for the words āsecond gift.ā
Thanks, but I trade on oandas fxtrade after the gap is too big for 1min on mt4,
I use squint, lean forward and guess! lol
Yes, about 5 baskets closed for profit. About 5 % of my account.
How far apart are your baskets? 20 pips?
wow how much were you risking?
I have some baskets open. The biggest loss is 107 pips.
About 1 % per basket. I have the theory that if a trade can be 200+ pips against me, then it also can be 200+ pips in my favor, so Iām looking for big profits on my baskets. Doing stat analysis I found that it is possible to set a target more than twice the size of the stop with this technique. That way if you risk 1 % you can win 2 % or more, just need to wait some more time. I have a swapfree account, so I can let my trades run for long time without the swap problem
nope, I started with about 50 pips, adding with every 10 more pip divergence, until the 160 pips I had. Now Iām on about 103 pips divergence, so I closed 5 baskets. I use very small lot size, to be able to handle this type of divergences.