I believe it stands for Linear Regression Channel.
I opened 13 positions 1Ā½ days ago in a demo account. Iām trading this account [I][B]as if[/B][/I] the account balance was $1,000.
Each position taken was 1 micro-lot (1,000 units of base currency).
Initially, based on my hypothetical $1,000 balance, and my initial 13 positions:
Maximum used margin was 35.6% of the account
Maximum true leverage used was approximately 15:1
Shortly after entering those positions, I added a 200-pip stop-loss to each position. (Previously I had said that I would replicate mastergunnerās methods as closely as possible ā but, my stop-losses broke that intention, as mastergunner does not use initial stop-losses.)
Two positions got stopped out during the day on Monday. I would have been better off without the stop-losses, because each of those pairs later recovered about half of the 200 pips it was down when my SL was hit.
Overall numbers, so far:
13 positions were opened initially (9 longs, 4 shorts)
2 positions (long CHF/JPY and long GBP/JPY) were stopped out, with a 200-pip loss on each one
1 position (long AUD/JPY) was closed manually during the Asian Session on Monday, for a 63-pip loss
1 position (long AUD/CAD) was closed manually shortly before the close of the NY Session today, for a 51-pip loss
9 positions are running currently:
Longs
AUD/USD
USD/CHF
AUD/CHF
CAD/JPY
GBP/CHF
Shorts
EUR/GBP
EUR/USD
EUR/CAD
EUR/AUD
Realized losses (booked) so far: -516 pips = 5.422% loss from initial ($1,000) account balance
Unrealized P/L (on open positions) as of 5pm EDT Tuesday: +805 pips
Equity, as of 5pm EDT Tuesday = 103.1% of initial account balance
If I were to close my remaining positions now (at 5pm EDT Tuesday), net profit (realized) would be 3.1% of initial balance. Thatās a return-on-capital of 2% per day. Imagine if you could [I]average[/I] 2% per trading day over the long term!
I need to make the following improvements:
Refine my determination of bias
Improve my entries (take better account of key S/R, pivots, fibs, and candlestick patterns)
Put my catastrophic SLās further away from my entries (or abandon initial SLās altogether)
Define a method for determining when to manually close a loser (other than relying on gut-feel)
Define a method for determining when to manually close a winner
Now itās time to do my end-of-day portfolio adjustments for today. 5pm EDT (New York time) is what I consider the end of the trading day.
How many pips would you let a pir go down befre closing it or how much time, i remembre reading you dont stay negative more than a few daya, plus getting closed by oanda if negative for 7 days, so i would asume thatās the time limit.
But as far as pips. I have quite a few open positions, some are negative down by 17 pips, but two are 60 and 70 down. Its just been a day and my pa analysis showed it might go in the direction i opened them for, i have no sl on any and i have previously been on a trade down 100 a couple o days and then it goes the direction i wanted it to.
With your method how much is too much?
What? huh? I never heard of this before.
If youāre negative for 7 days you get a margin call. In down 20 pips for a day and ive received an email notifying it will get closed in 7days.
Linear Regression Channel
I think you are wrong.
You get a margin call IF your equity falls below the margin call level, that is about margin level of 100% or less. And you are stopped out if you fail to increase your margin level in the margin call time, OR if your equity falls below the stop out level that is about 50%.
You should never let your account to have less than margin level below 200%, specially if let trades open on weekends or on news.
My positions at the moment are
Longs:
CADJPY
GBPJPY
NZDJPY
USDJPY
Shorts
GBPAUD
GBPCAD
GBPNZD
My floating P/L is +139 pips at the moment, but I placed all the trades less than 24 hour ago.
OANDA will send daily emails to accounts that fall below margin requirements at 4 p.m. Eastern time. When an account remains undermargined for 7 consecutive trading days, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. Any remaining open positions will automatically close at the current fxTrade rate when the markets for those instruments re-open.
By the way, if you are margin called with a floating loss of only 20 pips you are way over leveraged!
You should check the money management and leverage parts of the school of pipsology to understand better this
I failed to say its 20 on several pairs, but its demo and it was wreckless trading, iāll open another one and take more seriously. And yes its below margin. But anuway going back to my original question, if MG or anyone here could share their thoughts, how much would you let a trade go negative on you before closing it, or just how many days in negative (if not margin called) would you let it open?
Thanks in advance
If I remember well, MG99 does not think about how many pips or days, but if the bias is still valid or not.
If he see something that can be a bias changer, he place a stop loss on the previous day bar (high or low, depending short or long) and let the stop close the trade.
Also I think he said that he never closes a trade manually, but let the stop close it.
You must have had a very large position size for your available margin if you got a margin call for only -20 pips!
Iāve been down over 1000 pips overall on 12 trades of which some have been open for over 2 weeks. However due to my position size, itās only -$100 or -10% of my account balance
Its 20 average on several pairs and position size is small but tye balance is low as well so thats why, its a demo account i opened some time ago and i let it go down to about 100 and start there.
BTW anyone here uses zigzags. I just thought iād share this. I dont use them for the purpose of deciding when to buy or sell since they repaint, but for the only purpose of visual aud. They helped me a lot in spotting patterns specially head and shoulders, plus i find them really useful to determine where to draw my fibs.
Iān no where near being a forex pro, and i know they can spot this withou them but, theyāve been really helpful, as visual aid.
Pleae review this trade, what do you think?
Way too soon to go longā¦ My bias is actually short there. Price was rejected to the upside and the price action has been short.
Just my opinion
Portfolio changes since yesterday at 5pm (New York time):
AUD/USD long: closed manually at approximately break-even ā the position just didnāt feel right.
CAD/CHF long: opened ā currently up 49 pips.
This PORTFOLIO was started in a $1,000 demo account on Monday (March 25) at 4:40am EDT (New York time).
So far, 14 positions have been opened.
Five losers have been closed, resulting in an aggregate loss of -516 pips ($54.65 loss booked to the account).
Nine winners continue to run, currently showing Open P/L of +1,213 pips ($128.06 in open profits).
If the remaining positions were closed now, net realized profit would be $75.06 (including $1.65 in positive roll-over). This would represent a 7.5% return-on-capital in 2 days and 15 hours.
At this point, the +1,213 pips of Open P/L represent a [I]bird in the bush,[/I] not a [I]bird in the hand.[/I] Until each of the nine winners currently running has been closed, that 7.5% is merely [I]potentia[/I]l profit.
However, this PORTFOLIO Methodology continues to impress me with its [I]potential.[/I]
Clint can you keep us updated? And everyone else? Idk I feel like Iām missing something. Although your period is only 2 days. Still.
Markets move in swings. Maybe entering Long after a swing low isnt the best. Since when the swing is confirmed price has already moved up.
Also Iām thinking of halving my initial position size. Since Iām going to be adding to them anyway.
Hey there just finished reading the whole thread (took a while :)) and Iāve got a couple of questions.
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Would you ever add to a position if you were in a trend and it had a pull back but the trend was resuming or does that go against the methodology.
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I know that if you were to take up positions on all 28 pairs there will be a bias towards certain currencies and a pull back of others so would it be okay to trade more on the strong vs weak pairs more, maybe not a long term trade but a day trade to add.