Richard Hill Forex Net Trap

[pseudo straddle]

No, I quite like it. I actually use larger stop losses anyway but adjust the MM% so the overall monetary risk is about the same. It has saved me a couple of times when some have been stopped out at -33 etc and my stops were further out. I decided long ago that the idea of risking x to win y was far less important than the probability of the stop being hit in itself. probably not many will agree but it works for me

Well said, Sir. I think a variable SL, calculated from recent high/lows and stake adjusted to 2% might be a worthwhile tweak.

:idea:

 

[Claviceps]

Well said, Sir. I think a variable SL, calculated from recent high/lows and stake adjusted to 2% might be a worthwhile tweak.

:idea:

couldn't agree more , bollis will help adjust your SL's to market conditions ,occaisionaly they can be pretty tight ,and when they are there is the option to raise the price per pip using the same MM , also the converse is true in conditions of extreme volatility the SL
may need to be larger than you are comfortable with in which case it may be a no trade .
A one size fits all approach to SL's could be a weakness in the NT system.

 

[peterf1966]

Anyone know if the USA's holiday on Monday will affect things at all?

 

[Claviceps]

Anyone know if the USA's holiday on Monday will affect things at all?

Yes -mentioned this earlier this morning ,some of the other morning trading systems
do not trade the day following a US bank holiday as their indicators may be up the creek having had no US session the day before. It means Tuesday just may be a bit strange-
caution advised.

 

[mark120169]

Dug this back out for those that wanted the historical results. This is the 1st year. June 2010 will be a losing month, only the 2nd but lowest so far.

M

Ok maties. A treat for all those who ask about Net Trap historic results. From the sales blurb figures, my roundup emails from RH and Aprils roundup emails kindly donated by Peter1966 here are the First "official" full year Net Trap results as traded by the inventor Richard Hill. This Covers 12 months from June 2009 to May 2010, we are just starting the second year of trading the system. :smart:

12 month Total = 1800 pips profit! Average 150 pips p/m profit.

Monthly Breakdown

Jun 2009 +298 pips
Jul 2009 +410 pips
Aug 2009 +257 pips

Q1 total +965 pips = 53.6% annual total

Sep 2009 +120 pips
Oct 2009 +56 pips
Nov 2009 +221 pips

Q2 total +397 pips = 22.1% annual total

Dec 2009 +12 pips
Jan 2010 +125 pips
Feb 2010 -29 pips

Q3 total +108 pips = 6% annual total

Mar 2010 +154 pips
Apr 2010 +139 pips
May 2010 +37 pips

Q4 total + 330 pips = 18.3% annual total


As you can see the Greek euro crisis started gathering pace in Feb 2010 and the Euro lack of stability in General has caused lots of volitility that effect GBP / USD and Net Trap but March and April where still ok months. With the flare up again in Euro worries during May 2010 again Net Trap suffered but coped better than in Feb 2010.

I suspect as long as the Euro is all over the place along with the other Global economic uncertanties we wont see a repeat of the fantastic run NT had at it's start during the Summer 0f 2009 during the mini bull run in gobal markets. But time will tell.

If it can average 100 pips p/m in year 2 in the current markets and the potential world austerity ahead of us I would say it's a pretty solid system which should give good results in the future once markets resume to a more settled pace.

Happy chatting


Mark

 

[Rugby Trader]

Anyone know if the USA's holiday on Monday will affect things at all?

In his FAQ on his email, he say we don't trade on bank holidays.
I think I may take that to mean on both sides of the pond.

 

[Tanguero]

couldn't agree more , bollis will help adjust your SL's to market conditions ,occaisionaly they can be pretty tight ,and when they are there is the option to raise the price per pip using the same MM

Nice thinking but in this case it would mean exposing your butt to a whipsaw.

 

[Claviceps]

Nice thinking but in this case it would mean exposing your butt to a whipsaw.

always a possibility , but you only go to a tight sl when the bands are tight meaning volatility is low

 

[BigBrassBalls]

Good result for INT again today!

I usually check if there's a signal to trade on bank holidays, but won't be this time round, as i'm moving and will be without broadband for a day or two.

Hopefully will be back making some pips shortly!

P.S.

Make sure you do stick to recommended 19% risk management rule. This means an account size of £1,500 to trade £9.50 a pip.

 

[pboyles]

Dug this back out for those that wanted the historical results. This is the 1st year. June 2010 will be a losing month, only the 2nd but lowest so far.

M

Those are the results from live trades by people who bought the system or those are what the system seller says the results were? There's a big difference, as you may now realise.

 

[mark120169]

Those are the results from live trades by people who bought the system or those are what the system seller says the results were? There's a big difference, as you may now realise.

These are RH the inventors results. from the roundup emails I have seen for April. May and June 2010 they do map pretty much what happened but I don't think the system was for sale until Nov 09 so all the early good results where done by RH and selected testers,

I'm sure the backtest guys on here have already double checked these at some point and if there where any huge discrepancies they would shout about it.

M

 

[pboyles]

The reason I mention it is that I have yet to see a system which didn't have it's past results manipulated. Even backtests are misleading as they can't account for slippage etc. You could ask to see an audited account statement but I'd be willing to bet you'll be palmed off with some ridiculous excuse.

 

[everydaytrader]

In fairness the results have been good so far, and I have mostly agreed with RH's weekly round up
apart from last Friday which was definately a -30 in my opinion. There is still a good case for
using vanilla NT even though I have not.

I have fiddled with the system almost from the day I bought it because I believed that it was to
simple to be successful over time and that too many other factors are ignored. I will continue to
use the NT signal to trade but will manage the trade differently using some of the ideas from
other people on this thread and some of my own.If results prove me wrong I can always return
to vanilla NT and have no regrets buying it in the first place.

 

[Denman]

Good result for INT again today!

I usually check if there's a signal to trade on bank holidays, but won't be this time round, as i'm moving and will be without broadband for a day or two.

Hopefully will be back making some pips shortly!

P.S.

Make sure you do stick to recommended 19% risk management rule. This means an account size of £1,500 to trade £9.50 a pip.

Evenng BigBrassBalls, I thought we were to use 2%?

 

[mark120169]

Evenng BigBrassBalls, I thought we were to use 2%?

I think he is taking the mick, or admiting a mistake. Could be his trade today was supposed to be 95p a pip but was entered @ £9.50 a pip!!



M

 

[BigBrassBalls]

Sorry, i was in fact taking the mick! If you had been using 19% risk management rule, last week would have been an absolute shocker! 2% or 4% max is whatyou want to use!

 

[mark120169]

Sorry, i was in fact taking the mick! If you had been using 19% risk management rule, last week would have been an absolute shocker! 2% or 4% max is whatyou want to use!

I think even 4% is seen as shockingly crazy by the experienced guys. That is for nutters!



M

 

[Tenapenny]

Useful site for anyone new to spread-betting or even to brush up on things. http://www.financial-spread-betting.com/

 

[goldfinger777]

I think even 4% is seen as shockingly crazy by the experienced guys. That is for nutters!



M

Yeah who on earth would be mental enough to risk 4%? :whistling

Seriously though, many professional traders recommend that as your bank gets bigger, your total MM% should get smaller. Obviously it's very difficult to maintain 2 or 3%MM when you've only got £100 in your trading bank and the min stake size allowed is 50p. But once your bank gets past, say £5000, you should ideally be looking to gradually reduce your MM% down to 1% for true long-term success.

This may seem overly cautious when you're only doing day trades with tight 30pt stops, but if you ever get into trading the trends on weekly or monthly trades you'll need a 200pt+ stop, so you can see that you'll want to more tightly control your MM% risk in those circumstances.

 

[Denman]

Hello goldfinger777, thanx for your informative post. Imho i think pure Net trap is the way for me(though i intend opening another account for INT).
Could you tell me, if i was to have a bank of £3000 and traded at 3percent @ £3 a pip and made 25pips avge a week, what i could seriously hope to make after 3 years using exponetial compounding. Mark posted a graph with this info but for some reason it wouldnt download.
Thanx and kind regards.