The ideas that I trade by:

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Sun Oct 01, 2017 8:12 pm

PhilipLangford wrote:I have read the entire thread and internalized the concepts. The repeated explanations by Mighty One, in his vast patience (infinite?) actually helped to drum in the understanding.

The eights/lines trading reminds me very much of TRO's traplines (first mention thereof in this thread), though the money management is homogenized across all time frames.

I wonder what changed the idea of maxing out leverage and riding on ever bigger timeframes while space expands to colossal levels, to reducing size as you move up the time frames? Was it not as profitable?

My broker offers me 5000:1 leverage. If I maxed that out and rode a multi month rally, I might just buy peace on earth.


I have never heard of 'trap-lines', do you have a link?

Size is only reduced so that the money per line is the same:

Let's say that you are trading the H1 with 2 lines of risk, you take profit, and then you notice that the D1 chart of another pair looks like an amazing short; according to EIGHTS strategy you would reduce your position size by 75%, multiply your line width by 4, and then trade the D1 as you would the H1 chart for the same amount of money per line (you could also start at H1 size and close 75% of your position when a D1 entry line is hit).

At this stage of the game you are not trying to maximize pip gains, you are simply trying to make a few lines and then absorb the profits so that you can increase your position size.

Once you understand why you might alter your position size you can begin to come up with your own strategies.

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PhilipLangford
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Re: The ideas that I trade by:

Postby PhilipLangford » Mon Oct 02, 2017 5:11 am

I have never heard of 'trap-lines', do you have a link?

Size is only reduced so that the money per line is the same:

Let's say that you are trading the H1 with 2 lines of risk, you take profit, and then you notice that the D1 chart of another pair looks like an amazing short; according to EIGHTS strategy you would reduce your position size by 75%, multiply your line width by 4, and then trade the D1 as you would the H1 chart for the same amount of money per line (you could also start at H1 size and close 75% of your position when a D1 entry line is hit).

At this stage of the game you are not trying to maximize pip gains, you are simply trying to make a few lines and then absorb the profits so that you can increase your position size.

Once you understand why you might alter your position size you can begin to come up with your own strategies.


I have a copy of TRO's Trapline Trading Strategy floating around on a drive somewhere, but TRO was not giving it away and it looks like it's no longer up for sale. Maybe ask him about it.

The charts are fractal across timeframes, but IMHO it's a different psychology to scalp 15M bars than to use the same set ups on D1, W1 bars. Minutes versus days/weeks for a trade to unfold. During times of expected volatility (NFP this week), then the bigger charts behave like their smaller cousins, and the effect of giant pip moves can be dampened with the use of eights.

The strategy is a safe play, profitable and brilliant in its simplicity, but used alone will not add zeroes to an account in a year. Adding size and reducing space can add zeroes. Even from a standing start.

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Re: The ideas that I trade by:

Postby MightyOne » Mon Oct 02, 2017 2:36 pm

PhilipLangford wrote:
...but used alone will not add zeroes to an account in a year. Adding size and reducing space can add zeroes. Even from a standing start.


If you punch numbers into a compound interest calculator then you will see that +0 is less than a 1% gain per day.

The reason why one does not add a zero is because it is impossible to catch up with compounding returns if you are constantly in drawdown.

You are right though, staying out of drawdown is not enough, you have to increase your position size at some point or get left behind.

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Re: The ideas that I trade by:

Postby prochargedmopar » Mon Oct 02, 2017 6:17 pm

MightyOne wrote:
PhilipLangford wrote:
...but used alone will not add zeroes to an account in a year. Adding size and reducing space can add zeroes. Even from a standing start.


If you punch numbers into a compound interest calculator then you will see that +0 is less than a 1% gain per day.

The reason why one does not add a zero is because it is impossible to catch up with compounding returns if you are constantly in drawdown.

You are right though, staying out of drawdown is not enough, you have to increase your position size at some point or get left behind.


I'm standing here.
Someone fire the starting gun please.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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Re: The ideas that I trade by:

Postby PhilipLangford » Mon Oct 02, 2017 7:27 pm

prochargedmopar wrote:I'm standing here.
Someone fire the starting gun please.

Haha, I'm just the new guy and I feel like I know the characters from way back in this thread. It's really an epic read.

Pro, you can always pull the trigger yourself. Fear of loss? Start with micro lots. Risk 0.1% per trade. Even from there, with a few aggressive doubles, it's possible to increase size and run with the big dogs.

I think success in MightyOne's strategy does require a certain mind set. You have to know that the strategy works (I see it as a reverse martingale). You have to be prepared to take seemingly frequent small losses, particularly in reducing size and re-inflating space. You have to physically watch the markets almost all the time.

What holds you back?

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Re: The ideas that I trade by:

Postby Mira » Tue Oct 03, 2017 8:23 am

PhilipLangford wrote: You have to physically watch the markets almost all the time.

What holds you back?


Hi Philip

It depends by the chart period you want to trade.
A daily+ chart doesn’t need all the attentions that a H4- chart needs.
__________ THE :smt096 IS A LIE__________

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Re: The ideas that I trade by:

Postby PhilipLangford » Tue Oct 03, 2017 4:42 pm

Mira wrote:A daily+ chart doesn’t need all the attentions that a H4- chart needs.


Sure but only once you have enormous space to play with. Even then, things like NFP, central bank interest rate decisions, global events, etc, can move price like a feather in a hurricane.

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Postby MightyOne » Wed Oct 11, 2017 4:26 pm

I found this site a few days ago and I really like it.

If you have a participating local library then you can learn languages here for free (or else it is $20/month).

You are not going to master a language at this site but you'll put a dent in a goodly number of languages by reason of curiosity.

If you don't see your language then you can request for it to be added.


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Re:

Postby TheRumpledOne » Thu Oct 12, 2017 8:51 pm

MightyOne wrote:I found this site a few days ago and I really like it.

If you have a participating local library then you can learn languages here for free (or else it is $20/month).

You are not going to master a language at this site but you'll put a dent in a goodly number of languages by reason of curiosity.

If you don't see your language then you can request for it to be added.



Do they have MightyOne to English? :lol:
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Re: Re:

Postby MightyOne » Fri Oct 13, 2017 1:47 am

TheRumpledOne wrote:
MightyOne wrote:I found this site a few days ago and I really like it.

If you have a participating local library then you can learn languages here for free (or else it is $20/month).

You are not going to master a language at this site but you'll put a dent in a goodly number of languages by reason of curiosity.

If you don't see your language then you can request for it to be added.



Do they have MightyOne to English? :lol:


Grab a bottle of rum and in 20 minutes you'll speak fluent MO :wink:

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