GREY1 P/L daily

[rajibde]

This is a difficult answer to give in exact terms but what would be a good idea is to see if the stock oscillates when the Dow is in consolidation. That way you have an increased chance that it will oscillate and increases the probability of returning to VWAP. However, any trade can go against you and you must be prepared to exit if it does without question or hesitation.


Paul

Thanks Paul-it underpins the need for a very effecient money mangement for success more than anything else.

Cheers!

Raj

 

[rajibde]

Thanks Paul-it underpins the need for a very efficient money management for success more than anything else.

Cheers!

Raj

Hi Paul,

Just been going through yours and Grey 1's previous posts-a couple of points come to my mind-

1) for the pair trading am I correct in thinking that do you not place stops and monitor the net position for both the trades so as to be able to close both the trades at the same time if required (based on calculated max allowable loss)?

2) Grey 1 mentions about spread based stops and Low level Time frame asset diversification - I am unable to find any further explanation on these topics- can you or Grey1 (or anyone else) please write something on these topics?

Regards

Raj

edit-ref point 1)- I do not mean that the stop is not calculated- I mean that as this is a market neutral position, do you monitor the net position for stop loss(?)without placing the stops when you enter the trade.

 

[Trader333]

do you monitor the net position for stop loss(?)without placing the stops when you enter the trade.

Yes it is the net position that matters. If both stocks move up (or down) a long way but no loss is incurred then I would hold the position. It is only if the net position goes into a pre-determined loss that I would exit, Grey1 may differ but that is how I do it.

I am unable to answer point 2 which is specific to comments made by Grey1


Paul

 

[Trader333]

Grey1,

I have a question about your divergence indicator and that is how many bars back is the comparison between the stock and index ? or is it based on something else ?


Paul

 

[Grey1]

Hi Paul,

Just been going through yours and Grey 1's previous posts-a couple of points come to my mind-

1) for the pair trading am I correct in thinking that do you not place stops and monitor the net position for both the trades so as to be able to close both the trades at the same time if required (based on calculated max allowable loss)?

2) Grey 1 mentions about spread based stops and Low level Time frame asset diversification - I am unable to find any further explanation on these topics- can you or Grey1 (or anyone else) please write something on these topics?

Regards

Raj

edit-ref point 1)- I do not mean that the stop is not calculated- I mean that as this is a market neutral position, do you monitor the net position for stop loss(?)without placing the stops when you enter the trade.

Hi

It is very unlikely for both positions to go against you unless you are closing the position too soon . Given time the strategy will result in a net profit. The only time a position is net loss is when market oscillates sharply which winds trader up to break the strategy's rule. ALL Trading strategies must be religiously obeyed other wise you don't have a strategy .

Under the worse case scenario the stop loss must not exceed that of 2 ATR of 1 min time frame .

if one of the positions results in more loss than the gain on the other pair the position must be reduced without adding to the winning pair. Remember the pair must have the same weighting in position size to start with .

hope this clears it all .

Example.

AAPL ATR 1 min = 12 C top MPD
JOYG ATR 1 min = 18 C Bottom MPD

you would short 1800 AAPL long 1200 JOYG.

Stop loss = 60C
lets say AAPL is going against you 12 C , you then reduce the pos by 1/2 letting JOYG running the full size.( you donot add to JOYG )

It is much better if you let price penetrate the BAND and take the position on the way to wards the VWAP line .

Grey1

 

[Grey1]

Grey1,

I have a question about your divergence indicator and that is how many bars back is the comparison between the stock and index ? or is it based on something else ?


Paul

As soon as there are X bars divergence ( you set the bars to 1,2 or 3) then the signal is triggered. The new signals are shown by red for weak and green for strong and they change to lighter colours to allow trader to distinguish the new from old signal.The divergence are based on previous close .

is that clear?

It is vital for any trader to understand weakness and strength in an instrument. How can a trader trade without knowing where he stands with the inherent strength or weakness in an instrument ?


Grey1

PS:_- i have training and live trading starting on 18th Sep in my house.

I like to show all traders that trading is dead simple if you know how .
I like to show that trading trend is the only way ahead ( unless pair trading ) .
I like to show I also lose but i win more . Loss is in evitable .

 

[samtron]

PS:_- i have training and live trading starting on 18th Sep in my house.

I like to show all traders that trading is dead simple if you know how .
I like to show that trading trend is the only way ahead ( unless pair trading ) .
I like to show I also lose but i win more . Loss is in evitable .

Cheers Grey1, Hope to put the new indicator to good use this comming week.

Polite notice:
Others charge $,$$$$'s! ! for training, and I have noticed what seems to be a common thread when asked why they teach instead of trade, it seems to be "i enjoy teaching people" more like I enjoy the $,$$$$ LOL

 

[Trader333]

Thanks Iraj, I was curious more than anything else.


Paul

 

[Grey1]

Cheers Grey1, Hope to put the new indicator to good use this comming week.

Polite notice:
Others charge $,$$$$'s! ! for training, and I have noticed what seems to be a common thread when asked why they teach instead of trade, it seems to be "i enjoy teaching people" more like I enjoy the $,$$$$ LOL

loL Enjoy teaching .. One can get more enjoyment from trading than teaching . I had a phone call from a mate from Sweden to say he is in UK and if he could come to see me and i said you can but we have to trade on and off as i have family commitment and he accepted it . We traded the market live using the simple TA ( divergence ,Momentum and 2 signals from VWAP ENGINE ... ) but controlled our risk and still made $700 in few trades o the day ( perhaps he wants to confirm what I am writing here ).

I enjoy sharing as much as i possibly can but making money for me is the ultimate pleasure .

grey1

 

[rajibde]

Hi

It is very unlikely for both positions to go against you unless you are closing the position too soon . Given time the strategy will result in a net profit. The only time a position is net loss is when market oscillates sharply which winds trader up to break the strategy's rule. ALL Trading strategies must be religiously obeyed other wise you don't have a strategy .

Under the worse case scenario the stop loss must not exceed that of 2 ATR of 1 min time frame .

if one of the positions results in more loss than the gain on the other pair the position must be reduced without adding to the winning pair. Remember the pair must have the same weighting in position size to start with .

hope this clears it all .

Example.

AAPL ATR 1 min = 12 C top MPD
JOYG ATR 1 min = 18 C Bottom MPD

you would short 1800 AAPL long 1200 JOYG.

Stop loss = 60C
lets say AAPL is going against you 12 C , you then reduce the pos by 1/2 letting JOYG running the full size.( you donot add to JOYG )

It is much better if you let price penetrate the BAND and take the position on the way to wards the VWAP line .

Grey1

Thanks Grey1,

It is quite clear now.

Raj

 

[rajibde]

Yes it is the net position that matters. If both stocks move up (or down) a long way but no loss is incurred then I would hold the position. It is only if the net position goes into a pre-determined loss that I would exit, Grey1 may differ but that is how I do it.

I am unable to answer point 2 which is specific to comments made by Grey1


Paul

Thanks Paul for your reply.

Raj

 

[fibbo]

loL Enjoy teaching .. One can get more enjoyment from trading than teaching . I had a phone call from a mate from Sweden to say he is in UK and if he could come to see me and i said you can but we have to trade on and off as i have family commitment and he accepted it . We traded the market live using the simple TA ( divergence ,Momentum and 2 signals from VWAP ENGINE ... ) but controlled our risk and still made $700 in few trades o the day ( perhaps he wants to confirm what I am writing here ).

I enjoy sharing as much as i possibly can but making money for me is the ultimate pleasure .


Hi all
just dropping a line to confirm Iraj´s comments above. Iraj was very kind in letting me come to his house especially while he had guests, and it was well worth it. We mostly traded the methods that Iraj has laid out on this site for all to see, methods that we all should be able to do, the money we made was also based on share size that i ( with only a small bank roll)could afford to trade while keeping within my risk tolarence.
I just hope i can put it all into practice now.
Thanks again Iraj
Regards Steve

 

[evostik]

Hi

It is very unlikely for both positions to go against you unless you are closing the position too soon . Given time the strategy will result in a net profit. The only time a position is net loss is when market oscillates sharply which winds trader up to break the strategy's rule. ALL Trading strategies must be religiously obeyed other wise you don't have a strategy .

Under the worse case scenario the stop loss must not exceed that of 2 ATR of 1 min time frame .

if one of the positions results in more loss than the gain on the other pair the position must be reduced without adding to the winning pair. Remember the pair must have the same weighting in position size to start with .

hope this clears it all .

Example.

AAPL ATR 1 min = 12 C top MPD
JOYG ATR 1 min = 18 C Bottom MPD

you would short 1800 AAPL long 1200 JOYG.

Stop loss = 60C
lets say AAPL is going against you 12 C , you then reduce the pos by 1/2 letting JOYG running the full size.( you donot add to JOYG )

It is much better if you let price penetrate the BAND and take the position on the way to wards the VWAP line .

Grey1

Hi Grey1

Thanks again for the example which really helps the learning and understanding but would you mind expanding a little on the area of scaling back in? For example: - if after you have closed half the position in AAPL because it ran past the 12c ATR against you, if it then "turned around", at what point, if any, would you buy(short) back in to get back to the full original position size?

Cheers

Steve

 

[Grey1]

Hi Grey1

Thanks again for the example which really helps the learning and understanding but would you mind expanding a little on the area of scaling back in? For example: - if after you have closed half the position in AAPL because it ran past the 12c ATR against you, if it then "turned around", at what point, if any, would you buy(short) back in to get back to the full original position size?

Cheers

Steve

You donot scale in . You would close the both postion when in net profit. .



Grey1

 

[Grey1]

Traded the market on and off to day with near zero concentration on the market . I could have made at least 5K but only took $1800. I am not all that with market now a days //NO VWAP engine signal as I needed to be infront of PC all day and this i could not do .

Grey1

 

[Grey1]

I traded the market with FIBBO ( STEVE ) on SKYP till now and made $725 using smallish trade size. Fibbo followed my calls and made $200 with much smaller pos size. I think i managed to get one message acorss to STEVE regarding the correct use of exhaustion engine and he was well pleased.

I have to to go to Liverpool airport now so no more trade for me . DOnot not give up on day trading .. it is best job on this planet. If you need help I will help out as much as i can for free. Life is to short to be selfish


Perhaps FIBBO likes to post his P/L with Trades to day

I am 100% sure if I had stayed in JOYG trade i would have made at least 2K to day ,,

Grey

 

[Grey1]

I lost to day . All my readings on the exhaustion engine was different to chart. Not sure what the problems was. I traded bad and that is no excuse.

Mr Market got me .

Grey1

 

[Trader333]

Iraj,

Hmm, I am surprised as there were some great signals today especially with the aid of your new divergence indicator.

That said one day in what must be hundreds is remarkable by any standard and in my view you are still the most exceptional trader I have ever come across and totally honest as well.

Mr Market = 1, Grey 1 = 100K

Have a good weekend


Paul

 

[gulam]

I lost to day . All my readings on the exhaustion engine was different to chart. Not sure what the problems was. I traded bad and that is no excuse.

Mr Market got me .

Grey1

G1, I think its just a small pullback then you'll break out again with huge profits.

The divergence indicator stopped working, its not plotting any alerts. My input value are 2 for numbars and 2 for change of colour after x bar. I run it all day, and no alerts. I then changed the value to 0 on both, and I got all STRONG signals. I changed both to value 1, yet not signals.
Any assistence will be greatly apprecaited.

 

[samtron]

I lost to day . All my readings on the exhaustion engine was different to chart. Not sure what the problems was. I traded bad and that is no excuse.

Mr Market got me .

Grey1

Mr Market got Grey1