Trading Strategies/Risk Management/Mercado de Divisas

[Directional]

There are two aspects of risks. a) the amount of risk assumed and b) how the risk is managed. The amount of risk assumed is specific to the specific strategy or the combination of strategies. How it is managed refers to position sizing.

When we refer to the "big boys", what you will notice is that most of them increase risk when the system tells them to and decrease risk at the appropriate time.

This statement really says nothing at all, talk about stating the obvious.

I thought when you started this thread, you would be discussing "understanding trading strategies and using risk management more efficiently".

so far, all we have had is thinly disguised shilling of your website and products, and empty statements about nothing of use. This thread is no different from the other vendor threads seen on this site.

 

[T Squared Trading]

Response to Arbitrageur

This statement really says nothing at all, talk about stating the obvious.

I thought when you started this thread, you would be discussing "understanding trading strategies and using risk management more efficiently".

so far, all we have had is thinly disguised shilling of your website and products, and empty statements about nothing of use. This thread is no different from the other vendor threads seen on this site.

Good Afternoon Arbitrageur,

I appreciate your candor and can obviously sense your frustration as to what you perceive as lack of useful information..

I vehemently disagree, though, my friend. We’re all students of trading, and are all learning as we go forward. Very few books we have read even touch on the subject of risk management and position sizing. We feel we’ve discussed these subjects in this forum to satisfactory, thus far.

In reference to the “empty statements about nothing of use.” Please view the following statements taken directly from Barclays Group website, where some top performing fund managers explain there “trading methodology.” I have substituted the name with XYZ.



XYZ MANAGEMENT's trading style is based on technical patterns and can be described as a counter-trend system to profit from overheated market conditions. The program trades in the interbank foreign exchange market, mostly the majors EUR/USD, EUR/JPY, and EUR/GBP with a strict risk control approach to generate risk adjusted positions. A typical time horizon of a trade is between 2 - 12 hours. Our trading and risk management occurs in different time zones for a maximum trading effect. The counter trend trading strategy never ignores the main trend of the market. If a trend is too strong for a climax the system will never fight against the direction of the trend. The trading system is designed to incorporate automatic stop-loss protection. Furthermore, a system of trailing stop-loss points is an automatic standard mechanism in place to ensure that profitable positions result in locking in a minimum trading profit, while retaining the potential for further favorable market movement.

The XYZ CURRENCY FUND is a well-defined and disciplined approach toward investing into currencies. The focus is on major and minor currencies. The trading strategy is diversified across all deliverable currency pairs. Trading themes are expressed through cash and OTC options positions. The Fund's investment objective is to provide investors with consistent absolute returns through position taking solely in the currency market with a low correlation to fixed income and equity markets.



I also invite you to look at Goldman Sach’s, Deutsche Bank website, etc. Very little, if any information is given out to the clients on specifics of their funds and strategies.

Arbitrageur, I have no reservations in comparing our strategies and money management techniques to any of the top funds and strategies available to the general public. We are NOT going to put our strategies and “trade secrets” on the internet for all to see. That would be financial suicide. I invite you to view our site to read more about the finer points of what I have referred to in previous posts. Once the audited results are posted, feel free to contact the CPA, if you wish.

“Disguised shilling of your website and products.” I’m not disguised at all. My name is Terry Thompson, CEO of T Squared Trading LLC, and I have stated that from post 1. My contact information is listed on our website, feel free to contact me. We have a comprehensive advertising campaign planned, and wanted to get some feedback and lend some assistance to the members of this forum. How this is a “disguised shilling” is beyond me.

Anyhow, thanks again for you candor, as it gave us a platform to express these comments.

Peace Out,
T2

 

[fxmarkets]

howdy, where it says "The world leader in mechanical currency trading strategies" what are you measuring and comparing against and for what period or ods?

cheers.

Still cant see any historic buy /sell trades anywhere ,unless ive missed them..

 

[Directional]

I appreciate your candor and can obviously sense your frustration as to what you perceive as lack of useful information..

We feel we’ve discussed these subjects in this forum to satisfactory, thus far.

I for one, and perhaps others might disagree. I am always keen to learn more advanced elements of trading and get new viewpoints from those who would also like to discuss them, however it would seem that you started this thread with other intentions.

The "disguised shilling" was in the form of starting a thread to discuss your money management techniques, but instead using the thread to advertise your site and systems while actually saying nothing constructive at all about what you do. Sure you mention money management, but you've only really said in essence that they exist and that your systems use them, as do others, rather than saying anything interesting at all about methods.

You say this would be financial suicide, but I fail to see how discussing what you methods you use (ie: if not optimalf, then what and how?) to manage a trade would compromise you since the entry is what provides the initial edge, and the money management merely magnifies it. Besides, if you didnt want to discuss your methods then you shouldnt have started the thread under that premise.

regrettably, experienced traders here have legitimised your thread by giving you a chance as a new member and asking serious method questions. Twalker has asked some well versed money management questions that would not have compromised you to answer in detail. instead, the answer you gave above is no answer at all.

If you want to advertise openly, there is a forum specifically for commercial strategies advertising. Might I suggest you post there, or better still, get a mod to move this thread there for you since you clearly are only here to sell your system rather than discuss money management - which is fine if thats the case, but there is a forum on this site to do that, which is one I dont visit.

 

[T Squared Trading]

howdy, where it says "The world leader in mechanical currency trading strategies" what are you measuring and comparing against and for what period or ods?

cheers.

Still cant see any historic buy /sell trades anywhere ,unless ive missed them..

Hi Fxmarkets,

Nice to hear from you again. I hope you made some hay in the dollars decline the last few sessions, I remember you being long from around .2730.

Our slogan is the worldwide leader in mechanical currency trading strategies. This could be measured against other “signal provider” performances, could be measured against the level of customer service offered by others, could be measured against the number of clients, etc. etc. etc. There was really no specific intention in developing our brand with our advertising team….sorry.

You can see a small sample of our buy/sell trades on the “see how our strategies are currently performing page.” Then you can see a section names trade results for strategy suite 1. You may need to hit refresh to see it. Again, we realize it’s a short time span, but you should be able to see some of the risk management ideas exhibited in the p & l variations Look for audited results in a month or so.

Also, we’re having some troubles with web server in uploading up to date charts to reflect trading activity last evening and this am. They should be updated shortly.

Thanks for the questions FX,
T2

 

[T Squared Trading]

I for one, and perhaps others might disagree. I am always keen to learn more advanced elements of trading and get new viewpoints from those who would also like to discuss them, however it would seem that you started this thread with other intentions.

The "disguised shilling" was in the form of starting a thread to discuss your money management techniques, but instead using the thread to advertise your site and systems while actually saying nothing constructive at all about what you do. Sure you mention money management, but you've only really said in essence that they exist and that your systems use them, as do others, rather than saying anything interesting at all about methods.

You say this would be financial suicide, but I fail to see how discussing what you methods you use (ie: if not optimalf, then what and how?) to manage a trade would compromise you since the entry is what provides the initial edge, and the money management merely magnifies it. Besides, if you didnt want to discuss your methods then you shouldnt have started the thread under that premise.

regrettably, experienced traders here have legitimised your thread by giving you a chance as a new member and asking serious method questions. Twalker has asked some well versed money management questions that would not have compromised you to answer in detail. instead, the answer you gave above is no answer at all.

If you want to advertise openly, there is a forum specifically for commercial strategies advertising. Might I suggest you post there, or better still, get a mod to move this thread there for you since you clearly are only here to sell your system rather than discuss money management - which is fine if thats the case, but there is a forum on this site to do that, which is one I dont visit.

Hi Arbitrageur,

I appreciate your well thought out responses and objections. You’re very eloquent in your arguments even though you apparently do not find our commentary useful.

I was in contact with the moderator when I started this thread, to make sure I stayed within the guidelines. I’ve done my best to accomplish this. I have made commentary on aspects including risk management, market direction, etc., and have used the data from our strategies to help support my points. I fail to see what is wrong with that.

Anyway, with all due respect Arbitrageur, and I mean that; Short of sending a G4 to fly you from London to Naples, installing our strategies on your TradeStation, and taking you through the exact method we use in risk management, you wouldn’t be satisfied with anything I post on this forum.

I think it might be in everyone’s best interest if our “love affair,” comes to an end, and we part ways. I will continue to post on this forum, and I hope you are able to find the information you are looking for on the other educated threads on this site.

Good Luck,
T2

BTW…some of our swiss and yen strategies have reversed course and are now long the dollar. No change in the euro strategies.

 

[TheBramble]

It is indeed unfortunate that t2w's policy on advertising is in a state of apparent limbo (aka a real mess). This is to the detriment of tst, arb and t2w itself.

All it required is some clarity, or moving the thread or some less than commercially protective (understandable) candour if motives are less than totally commercially protective.

Any one will do....

In the interim. venerable members are dismissed, commercial entities seem very commercial and smug and t2w seems hapless.

 

[Directional]

Anyway, with all due respect Arbitrageur, and I mean that; Short of sending a G4 to fly you from London to Naples, installing our strategies on your TradeStation, and taking you through the exact method we use in risk management, you wouldn’t be satisfied with anything I post on this forum.

I had been thinking more of a middle line :cheesy: I already said at the start of this thread that I didnt expect you to disclose proprietary information, but I was at least expecting you to discuss a general outline of "method" since that is exactly what you proposed to do in post #1 - i quote:

"We place a strong emphasis on risk management and position sizing."

"My firm intends on posting to this forum occasionally to share our market thoughts and to answer any questions pertaining to strategy trading and risk management."

From such a statement, my reasonable conclusion and presumably that of others was that you wanted to spark an intelligent discussion/debate on money management - if that discussion centered around your systems as a sideways advert for how well thought out they might be (assuming the methods you use are any good) then that is "advertising" of a slightly more acceptable sort since everyone learns something, and you get some free coverage - and maybe just learn something new and beneficial here too. That would have been a perfectly "satisfying" response from you, no need to bother with a learjet and open-code ELD.

I hope you are able to find the information you are looking for on the other educated threads on this site.

just to clarify my motives, I'm not actually looking for anything other than stimulating and mutually beneficial discussion on trading. I have a reliable approach to the markets that I have openly discussed on this site, and the route to this edge came from other members right here on T2W - for which I am most grateful.

It seems to be a favorite trick of vendors at the moment, to promote commercial interests through starting and bumping basically worthless threads full of shallow "padding" and filled with well picked wow charts, over-optimized equity curves and hindsight choice trades - no meaningful discussion ensues since the vendor conveniently directs all queries to their website for more information, or sidesteps the question with a barely relevant generalization.

The whole process is mildly insulting to both newbies and veterans alike and so annoyingly transparent, that I think all involved would just be better off if such threads were more bluntly identifiable and cut out all the un-necessary and unsatisfactory foreplay these threads generate:

"Trade the markets: if you buy from Alan Rich"
or
"T2 Trading Systems have Risk Management!"

 

[TWI]

I am frankly a bit disappointed by this thread. Initialy the title did take my interest.

T"erminator"2 I wish you luck with your business.


Caveat Emptor

 

[Directional]

ditto on that TW.

besides, if the vendors methods and/or systems are genuinely so good, they will ultimately sell themselves if they stand up to the informed scrutiny of forum users in an appropriately titled advertising thread.

Totally un-necessary to start a fake discussion about otherwise important aspects of trading in an effort to draw attention.

Catapultam habeo. Nisi pecuniam omnem mihi dabris, ad caput tuum saxum immane mittam.

 

[T Squared Trading]

ditto on that TW.

besides, if the vendors methods and/or systems are genuinely so good, they will ultimately sell themselves if they stand up to the informed scrutiny of forum users in an appropriately titled advertising thread.

Totally un-necessary to start a fake discussion about otherwise important aspects of trading in an effort to draw attention.

Catapultam habeo. Nisi pecuniam omnem mihi dabris, ad caput tuum saxum immane mittam.

Hi Arb and TW,

I too am disappointed that you have felt I haven’t done an adequate job in answering your questions.

However, please don’t paint me with the same brush you use on other so called “signal providers.” I have not stated such idiotic bull **** that I’ve found not only on these forums, but others as well, such as but not limited to:
“I know someone who is married to a big trader on the floor that tells me big positions ahead of time,”
“You will make riches beyond your belief using this trading system,”
“My system has 99% accuracy.” Blah blah blah!!!
Also, go back in the archived posts….have I one time listed my url, or associated links to my site?

Let’s call a spade a spade here. Yes, I am trying to bring some attention to our services through an educated dialogue with fellow traders. Yes, I’ve done my best to show how risk management and position sizing play a key role in our success. Yes, I’ve shared market commentary from time to time, and used our strategies to validate what we are saying.

If it is a crime to attempt to share ideas and thoughts on the market, and at the same time bring attention to your company? If it is, then I’m guilty as charged. If not, then by all means question my thoughts and ideas, and ask direct questions, without labeling me a spammer, shill, etc. I don’t feel my actions on this thread warrant that type of abuse, and judging from the e-mail inquiries that we’ve received from members on this forum, they don’t either.

With that said, I feel you are both educated traders, and wish you luck with your future trading endeavors.

Peace Out,
T2

 

[T Squared Trading]

Daily Market Commentary for June 6, 2006

Good Morning T2W Forum,

We hope you all are doing well. Hopefully all of the extra-curricular activity is behind us. Here is your daily dose of market commentary. Comments and questions are always appreciated. Thanks for taking the time to view.

________________________________________________________________________________

Daily Commentary for June 6th, 2006

Good Monday Evening/Tuesday Morning,

Greetings from the brain trust here at T Squared Trading LLC. We have a lot to discuss, so let’s get right to it

News, news, and more news. There were 3 issues moving not only the currency market but the equity markets as well. Rising oil hit a 3 week high at around $74 a barrel. With the influx of travel on the horizon as summer approaches, it doesn’t take a genius to believe that this number will surely rise before heading lower. Iran's supreme leader Ayatollah Ali Khamenei stated in so many words that if you mess with his nuclear facilities there will be hell to pay. Finally, our Fed Chairman “not so” Gentle Ben Bernake spoke of core inflation potentially being a factor in further rate tightening. Mr. Bernake also delivered another proverbial kick to the investor’s groin when he expressed his disappointment in the lack of recent consumer spending.

Taking all this into consideration, the dollar performed rather well in all major pairs. On a chart basis, the dollar retraced some of its losses from Friday’s session in which it took it on the chin after a tamer than expected payroll number.

Our strategies are pointing towards a level of uncertainty as to the direction of the majors. The strong dollar move around 2pm ET was more then enough to convince our Swiss and Yen strategies to be “dollar lovers.” Our Euro strategies are still net long the dollar, as it appears it’s going to take a bit more convincing to change their microchip brains. Our shorter term Euro Speed is currently short the buck, but I must report it is approaching a long-dollar bias. So to sum it up, it appears that our strategies might be moving away from the negativism they have had towards the dollar as of late, and look like they’re starting to support the good old dinero.

Also, we apologize for the delay in getting up-to-date equity charts for our strategies. We’ve had some minor problems uploading the graphics, but look for them tomorrow am.

Thank You and Peace Out,
T2

 

[T Squared Trading]

Dollar Long Bias

Good Morning/Afternoon T2W,

Just a follow up to last night's commentary. Some of our mid-level euro based sensitive strategies are now long the dollar as of about 2 hours ago. Our yen and swiss strategies are still long and strong the greenback with the positions being opened yesterday.
Will keep you updated on our least sensitive strategies as the dollar continues to move, as to give a longer term direction.

Peace Out,
T2

 

[T Squared Trading]

Good Evening All,

Hope everyone had a profitable day. Nice little move the Dollar made. We are still undecided on a general direction in the long term, but our near and mid term strategies are liking the buck.

On a side note we've updated our p and l and transaction listing on our site. Again, you'll see with proper sizing we were able to capitalize on the dollar move.

I'd be happy to explain the data you see in these reports.

Take care all,
Thanks,
T2

 

[T Squared Trading]

Market Commentary for June 7, 2006

Daily Commentary for June 7th, 2006

Good Tuesday Evening/Wednesday Morning,

Hello fellow market prognosticators. I hope everyone survived the “devil’s holiday” today. I personally know of a baby boy that was born today, thankfully he was not named Damien. Anyhow on to the minimal news flow today:

Apparently a memo was sent out to all of the Fed big-wigs today to comment on the rate of inflation. St. Louis Fed President Poole and Fed Governor Bies decided to make some statements regarding the fact that a ¼ point increase later this month is pretty much a given. I want to send out a friendly reminder to keep an eye on both the CPI and PPI next week. Oil’s price behavior was pretty tame, losing a few cents, no big deal really. I also was reading an interesting article on the hedge fund boom in the first quarter of this year. Evidently, the wealthy are pouring more of their investment capital into these mysterious funds, no wonder, in the first quarter the average hedgie yielded a robust 5.85%. The manager’s are apparently putting an influx of 24 billion dollars in new assets to good use.

Our popular strategies are testing the waters before diving in head first. What I mean by that is the components of our Suite of Strategies (including a Yen, Swiss, and 2 Euro strategies) are long the dollar. Our individual strategies need a bit more convincing before committing to a long dollar bias. Two of the three are still long the Euro, but quickly losing their Mojo, as they are dipping into slightly negative territory in relation to their P & L. Our most sensitive algorithm based strategy, Euro Speed, has had a winner and a loser in the last few hours. It is currently flat, but pointing towards a pretty definitive dollar long bias in the near term.

Thank you for your time and good trading,
The Benevolent T2

 

[T Squared Trading]

Open Letter to Arbitrageur

Dear Sir/Madam,

I’m going to keep this short and sweet, as I’m sure no one cares about our apparent problem. I'm also sending this to you as a private message. Apparently you are omnipresent on the financial forums on the internet. You are very fortunate to have the free time to be able to do this.

It seems like you have an axe to grind with me or my company and what you perceive to be “spamming,” “stealth advertising,” etc. You even took to it to the extent to submit a comment on another thread ON ANOTHER WEBSITE in reference to me, and (I’m pretty sure) complain to the administrator about my posting. Not to mention expressing your views about me “the vendor,” on this forum.

Evidently I “put a bee in your bonnet” with the G5 and TradeStation comment, and who knows what else. I’ll have to tell you my friend, if your new “mission,” is to follow me around and try to create trouble, you’re going to be awfully busy. We will be paid advertisers on quite a few forums, and be actively posting on these forums as well. We have great strategies, and we are not going to be shy about advertising and spreading the word to the investing public. Plus, in our opinion and others, we do it in a very classy and educated way……..I’m sure you’ll be happy to disagree.

I suggest we take care of this asap. All of my contact information is on my website (oops another reference to the site) Feel free to contact me via email or phone, and I would be happy to discuss any problems you may have, and I’m sure we can come to some sort of agreement.

I find this almost laughable, but it probably should be addressed, so you can rest easy, and put your energy towards trading.

Peace Out and look for our market commentary later this evening,
T2

 

[Directional]

Lol. I had unsubscribed to this thread as it had dropped off the radar on my list of interesting discussions.

You seem rather sensitive to the fact that traders might disagree with your views!?

Well, if you are going to post on Elite Trader, you'd better start getting used to it as many a vendor and paid advertiser alike gets a public savaging there - the "signal to noise" ratio on ET is radically lower with far more trolls than here on T2W which is why I dont visit there very often.

I spotted your thread there by pure chance and thought I'd give you a headsup on what to expect. But frankly, I could care less. And to set the record straight I didnt complain to Baron either. That would have been a few keystrokes more than my interest level extended to.

So you can rest your worried head that in the world of trading forums I am probably the least of your worries or dissenters - I thought you were going to talk about money management here, you didnt. Case closed. And perfectly civilly too IMO.

So I'll get on with my trading and you can get on with your selling, and everyone will be happy I presume??