The Forex Portfolio - How to Gain Consistent Profits by Staying in the Market 24/7

krannin · March 1, 2013, 7:07am

Yeah, it was a trade personality test of 15 questions and in the end the first suggestion to read base on my result was this thread and was pretty accurate cuz I love this method and sync very well with my personality

mrchilled · March 1, 2013, 8:32am

jimbo79:

Finally finished reading all pages of this great thread and to summarize what I’ve learned and will implement in my newbie trading:

determine bias using weekly TF, daily TF with MA 10 and 4h TF with MA 60,

on weekend crunch number to make my own currency strength rating to get 2-3 strongest bullish and bearish currencies to get up to 6 currency pairs then wait for good entry to open up to 2 trades (maybe 4) since I’m still a newbie. For now thought of trading 5+ pair is not what I feel comfortable,

I know demo trading should be started but I rather risk $100 per trade with real money cause my learning grows so much faster when I’m losing or making money plus reading babypips forum & school saved me at least a year of demo trading on my own (and not figuring what I’ve learned here in last 3 weeks when I’ve made my 1st currency trade).

focus on price action and chart patterns & S/R & Fibonacci retracement lines but still rely on few technical indicators such as RSI, Stochastic, MACD and ADX/D+/D- for double confirmation to open a trade or wait for additional bar to close to confirm entry. I don’t feel comfortable go long when Stochastic is at 85 (or go short at 5) even if price if going in bias way.

I will place SL on every trade at around 100-200 pips since I at least know that max loss for me can be $100-$200 per trade which I’m comfortable with. If my trade gets over 100 pips in profit I will probably move SL to BE or 20 pips in profit.

This are key things I’ve learned in this thread and I thank you all for your contribution and sharing your great knowledge and what works for you and what doesn’t.

I’m also not gonna even try that 3 Duck system for trading cause some feedback from the ones that used is negative and I’m sure in this over 5 years that this system is known that algorithms have changed to wipe out traders using this system.
[B]
Anybody has anything valuable to add that he/she learned in this thread or this forum or something they use in their trading and not mentioned at babypips?[/B]

Big thanks to everybody sharing your knowledge - I’ve learned a lot just reading this thread.

If any other newbie/friend would ask me now how to start trading currencies I’d tell him/her - read this thread and go through babypips school and you’ll be ahead of 80% of other traders.

If I’m understanding things correctly, MG99’s strategy relies on portfolio diversification and risk - so when you say you want to take 2 trades, that to me contradicts the whole strategy. Open up 10 trades (all with a good reason to take the trade) and make sure the pairs are not correlated or at least heavily correlated. Anyone jump in here if I am wrong here …

mastergunner99 · March 1, 2013, 8:38am

No. I don’t manually close trades. It hit a stop I had.

krannin · March 1, 2013, 8:57am

Thats mean that if the trade is going against you, you put a SL and let the price do their thing. If the SL is hit then the trade is close but if not you just ride the wave for more pips?

mastergunner99 · March 1, 2013, 9:23am

That’s exactly how I do it.

d-pip · March 1, 2013, 9:25am

Don’t think your wrong mrchilled. IMO the beauty of mg99’s portfolio method is the broad diversification. After the London close I’ll post this week’s results on my simple “previous week’s candle” concept, right now it’s looking pretty. And IMO it’s because of the diversification.

mrchilled · March 1, 2013, 9:44am

Look forward to it. So why not add equities, commodities to the portfolio? I guess this then becomes hedge fund territory.

fortnight · March 1, 2013, 9:56am

mastergunner99:

I’ve never really considered seasons as I trade all year long. I wouldn’t say there’s anything set other than it would seem that about once a quarter, there’s a decent run to catch.

I’m probably more loose in my trading than you guys so I’m probably in the market more to randomly catch these moves. But then again, who’s to say your analysis wouldn’t have had you in either.

My bias is pretty simple it’s rather embarrassing. I just look to see the direction of price and take note of support and resistance. Candlestick patterns help paint a more detailed picture, as does Fibonacci. I’m generally resistant to changing my bias simply because a couple candles went against me. It has to be a more profound move supported by patterns and Fibonacci.

My bias isn’t that much different than you guys, and honestly I think you guys do a much more analytical job than I do and I imagine that you be in your favor.

On a side note, are any of you trading 3 ducks? Something tells me my money management in multiple pairs would serve that methodology well.

I am trading 3 ducks along w/ your methodology. Keeps me out of a lot of trades, but my win % is decent except for early this week when I got creamed. Clawing my way back up now!

d-pip · March 1, 2013, 11:25am

This week ran my demo with two sub-accounts using two different “portfolio” strats. One of the strats needs more work, got confused, missed some entries, etc. So we won’t talk about that one yet. :56:

Here’s the simple strat I used this week, almost the same as last week’s.

I opened the charts Sunday evening around 01:00 GMT - 8:00pm EST and reviewed 24 pairs.

If the previous week’s candle was a strong bull candle, I entered a market buy order.
If the previous week’s candle was a strong bear candle, I entered a market sell order.
If the previous week’s candle showed indecision, lack of conviction. I passed and did nothing.
Ended up placing market orders on 20 pairs and passed on 4.

I placed the position size at ½ the account amount, 5000 units per order, 10K demo bucks account.

At today’s London fix, 16:00 GTM, I closed all my orders with a 05.4% gain. During the week there was over 02% draw down, so don’t be fooled in thinking it’s “RISK FREE”.

Last week I did almost the same thing and had 04.7% gain. So I’m thinking of playing on demo a few more weeks and if the results continue I’ll open a live sub account. See how it feels with real money. :44:

Here’s a list of the 24 pairs I reviewed and my BUY, SELL or WAIT rating.

AUD/CAD BUY
AUDCHF BUY
AUDJPY BUY
AUDNZD BUY
AUDUSD WAIT
CADJPY SELL
CHFJPY SELL
EURAUD SELL
EURCAD WAIT
EURGBP BUY
EURJPY SELL
EURNZD SELL
EURUSD SELL
GBPAUD SELL
GBPCAD SELL
GBPJPY SELL
GBPNZD SELL
GBPUSD SELL
NZDCHF WAIT
NZDJPY WAIT
NZDUSD SELL
USDCAD BUY
USDCHF BUY
USDJPY BUY

somerandomusername · March 1, 2013, 11:34am

Thanks d-pip, that’s interesting data, wonder how it will play out in the longer term!

So, your getting your market bias from the previous week’s candle, right? Are you planning on testing your 1 Duck method for market bias too?

shofouforex · March 1, 2013, 11:39am

d-pip:

This week ran my demo with two sub-accounts using two different “portfolio” strats. One of the strats needs more work, got confused, missed some entries, etc. So we won’t talk about that one yet. :56:

Here’s the simple strat I used this week, almost the same as last week’s.

I opened the charts Sunday evening around 01:00 GMT - 8:00pm EST and reviewed 24 pairs.

If the previous week’s candle was a strong bull candle, I entered a market buy order.
If the previous week’s candle was a strong bear candle, I entered a market sell order.
If the previous week’s candle showed indecision, lack of conviction. I passed and did nothing.
Ended up placing market orders on 20 pairs and passed on 4.

I placed the position size at ½ the account amount, 5000 units per order, 10K demo bucks account.

At today’s London fix, 16:00 GTM, I closed all my orders with a 05.4% gain. During the week there was over 02% draw down, so don’t be fooled in thinking it’s “RISK FREE”.

Last week I did almost the same thing and had 04.7% gain. So I’m thinking of playing on demo a few more weeks and if the results continue I’ll open a live sub account. See how it feels with real money. :44:

Here’s a list of the 24 pairs I reviewed and my BUY, SELL or WAIT rating.

AUD/CAD BUY
AUDCHF BUY
AUDJPY BUY
AUDNZD BUY
AUDUSD WAIT
CADJPY SELL
CHFJPY SELL
EURAUD SELL
EURCAD WAIT
EURGBP BUY
EURJPY SELL
EURNZD SELL
EURUSD SELL
GBPAUD SELL
GBPCAD SELL
GBPJPY SELL
GBPNZD SELL
GBPUSD SELL
NZDCHF WAIT
NZDJPY WAIT
NZDUSD SELL
USDCAD BUY
USDCHF BUY
USDJPY BUY

Could you tell me what entry price you shorted for CHFJPY and your total pips on close?

d-pip · March 1, 2013, 12:48pm

Somerandomusername,

I don’t know, I trade 12-15 pairs using the original-real-live 3-ducks method with real money. This past week I noticed playing on the demo was distracting me from my real trading.

If I can workout a simple routine where I can keep up with demo-ing the 1-duck method on daily charts, focus on my real-$$$ 3-ducks trades, and get at least 4 hours of sleep a day, maybe!

Shofouforex,

Sold at 101.29 – closed at 98.88

somerandomusername · March 1, 2013, 1:13pm

d-pip

They say that sleep is overrated!

mastergunner99 · March 1, 2013, 1:19pm

"d-pip":

This week ran my demo with two sub-accounts using two different “portfolio” strats. One of the strats needs more work, got confused, missed some entries, etc. So we won’t talk about that one yet. :56:

Here’s the simple strat I used this week, almost the same as last week’s.

I opened the charts Sunday evening around 01:00 GMT - 8:00pm EST and reviewed 24 pairs.

If the previous week’s candle was a strong bull candle, I entered a market buy order.
If the previous week’s candle was a strong bear candle, I entered a market sell order.
If the previous week’s candle showed indecision, lack of conviction. I passed and did nothing.
Ended up placing market orders on 20 pairs and passed on 4.

I placed the position size at ½ the account amount, 5000 units per order, 10K demo bucks account.

At today’s London fix, 16:00 GTM, I closed all my orders with a 05.4% gain. During the week there was over 02% draw down, so don’t be fooled in thinking it’s “RISK FREE”.

Last week I did almost the same thing and had 04.7% gain. So I’m thinking of playing on demo a few more weeks and if the results continue I’ll open a live sub account. See how it feels with real money. :44:

Here’s a list of the 24 pairs I reviewed and my BUY, SELL or WAIT rating.

AUD/CAD BUY
AUDCHF BUY
AUDJPY BUY
AUDNZD BUY
AUDUSD WAIT
CADJPY SELL
CHFJPY SELL
EURAUD SELL
EURCAD WAIT
EURGBP BUY
EURJPY SELL
EURNZD SELL
EURUSD SELL
GBPAUD SELL
GBPCAD SELL
GBPJPY SELL
GBPNZD SELL
GBPUSD SELL
NZDCHF WAIT
NZDJPY WAIT
NZDUSD SELL
USDCAD BUY
USDCHF BUY
USDJPY BUY

That just about is the laziest trading I heard on this thread yet. It took what, maybe 5 minutes for you to analyze the market. How dare you pull 5%!

mastergunner99 · March 1, 2013, 1:20pm

Those in losing positions speak up please. It’s important to know how to take a loss effectively.

somerandomusername · March 1, 2013, 1:22pm

5 minutes, who has 5 minutes to spare these days??

Sweet_Pip · March 1, 2013, 1:55pm

ahem…:8:…well I didn’t have a great week but not all is lost yet. The 3 short trades I had this week hovered in rather large DD for most of it. I finally set a stop on AUDCHF because AUD seemed to be gaining strength over CHF, and after the news last night, it hit for -116. The big surprise was waking up to +100 on GPBUSD, and AUDUSD was about +10. I’ve now put a stop on GU to lock in some profit but not yet on AU which is at around -5 ATM.

It seems I don’t have enough trades open to call it much of a portfolio so will have to maybe loosen up my selectivity criteria a bit.

mastergunner99 · March 1, 2013, 2:17pm

My initial recommendation would be to stop trading like a girl and man up.

Thereafter I would kindly suggest posting a chart so we can dive in and discuss the loss and optimal management of losing positions.

somerandomusername · March 1, 2013, 2:29pm

Sweet Pip

Out of interest, what is your selection criteria?

shofouforex · March 1, 2013, 2:53pm

I am up 4% in equity as I write this with 11 trades currently still open: 6 are currently in loss and 5 in profit. I am leaving all of them open over the weekend…