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TheRumpledOne
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Postby TheRumpledOne » Sat Jun 30, 2007 10:22 pm

cvax wrote:rrobin

Your compilation of the important instructions on how to use gridiron is great. Thank you. Would you mind telling me which page the MINI GRIDIRON II post was made on? And also the NORMALIZER_AUTO one? I want to check out the screenshots that go along with those posts. Thanks.

TRO

Would you consider the BUY ZONE strategy one that generally yields a higher return per trade than the GRIDIRON? I don't have a lot of equity so that is why I was looking at the GRIDIRON because it seemed like I could potentially get a lot more per trade than I could with the BUY ZONE.


DO NOT BE IN A HURRY.

Look at the two percent spreadsheet. See what just 2 net pips per day will do with your 1 minilot.

Think about it.. without compounding, 2 pips a day is $500 a year on a $200 risk. That's a 150% return!

"Wisely and slow: They stumble who run fast."
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby TheRumpledOne » Sat Jun 30, 2007 10:29 pm

cvax wrote:sergiu thank you for the position sizing reminder. I thought position sizing was just used to normalize your losses to a set amount instead of limiting your gains to $100 per trade though. Please correct me if I am wrong.

I was under the impression that both BUY ZONE and GRIDIRON have SL that are 10-20 cents away from an ideal entry, so the position sizing would be the same for both strategies. The difference was that the GRIDIRON exit targets were higher than the BUY ZONE targets. Ideally If the targets are higher the profits are greater per trade too. Since BUY ZONE targets are generally lower (I think) it would mean less $ per trade. In order to get $100 a day I would need to BUY ZONE several times, but I don't have enough buying power to enter and exit multiple times so I was just checking if the GRIDIRON, with its higher targets, is the better option in this case.


Are we talking equities or currencies?

For equities, the buyzone is an income generator. The idea is to make sure, steady trades that net $100 or more per 1000 shares.

For forex, the buyzone can be an income generator and/or an account growth generator. You can grow a $500 account into a million if you stick to the method. Or you can just make a steady income trading once a day.
Net 4 pips on 100 minilots is $400 a trade.

The SL for FOREX is 7 pips.

The SL for equities is $.10

Exit accordingly.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby cvax » Sun Jul 01, 2007 1:30 am

I do equities because I have zero knowledge whatsoever on forex. I had to go check up what exactly a minilot and pip meant haha. Regarding the buyzone as an income generator does that mean you make a trade for $100 and thats it for the day or do you try to keep doing it until you get 2% account value for the day? Using AAPL as an example, a share price of ~$120 would equate to $120,000 for 1000 shares. A $100 trade would only be 0.08% of the account and to get 2% daily would require 24 trades a day. How is it that you can have enough buying power from a $120,000 account to do 24 trades worth $2.88mil? (Sorry for this noob question. I have never had a margin account before and just wondering about the nature of them)

Too bad I do not have enough money to juice AAPL in this fashion even once, let alone 24 times in a day :(. I can only get about 100 shares of AAPL and a $0.10 exit would produce only $10. After that I am completely out of buying power.

From your examples it seems forex is "friendly" to people with smaller account sizes. I was wondering, on average, how much does 1 minilot cost? Thanks for the help.

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Postby TheRumpledOne » Sun Jul 01, 2007 2:15 am

cvax wrote:I do equities because I have zero knowledge whatsoever on forex. I had to go check up what exactly a minilot and pip meant haha. Regarding the buyzone as an income generator does that mean you make a trade for $100 and thats it for the day or do you try to keep doing it until you get 2% account value for the day? Using AAPL as an example, a share price of ~$120 would equate to $120,000 for 1000 shares. A $100 trade would only be 0.08% of the account and to get 2% daily would require 24 trades a day. How is it that you can have enough buying power from a $120,000 account to do 24 trades worth $2.88mil? (Sorry for this noob question. I have never had a margin account before and just wondering about the nature of them)

Too bad I do not have enough money to juice AAPL in this fashion even once, let alone 24 times in a day :(. I can only get about 100 shares of AAPL and a $0.10 exit would produce only $10. After that I am completely out of buying power.

From your examples it seems forex is "friendly" to people with smaller account sizes. I was wondering, on average, how much does 1 minilot cost? Thanks for the help.


Equities: If you have enough to daytrade, $25,000, then you have $100,000 worth of buying power because you have 4 to 1 margin. You can buy/sell all day long. You do not lose buying power unless you lose money.

Forex: If you have $200 in your account then you have $20,000 "buying power". Right now you could buy 1 minilot ($10,000) of most currency pairs. One eurusd minilot is about $13,500 now. And every pip move increases or decrease your value by one dollar ( $1.00 ).
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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vittorio
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Postby vittorio » Sun Jul 01, 2007 9:02 am

Hi TRO,

For forex, the buyzone can be an income generator and/or an account growth generator. You can grow a $500 account into a million if you stick to the method. Or you can just make a steady income trading once a day.


In the case of "make a steady income trading once a day"...
How do you decide which trade of day ?
Only the 'first' of the day that is it in according with
the buy zone rules ?

Is this the link for the 2% excel file?
http://finance.groups.yahoo.com/group/T ... One/files/

TRO, thank you very muck for all tips and information
Vittorio

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Postby TheRumpledOne » Sun Jul 01, 2007 4:38 pm

For stocks, you trade whenever you get an entry trigger.

I posted the two percent excel spreadsheet here on Kreslik.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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