adrianallen99
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ctrimble said:
These are my favorite quotes from the site
FACT: The only way to MAKE HUGE PROFITS trading futures is to MAKE SURE YOU NEVER HAVE A LOSING TRADE. You must be able to make profits NO MATTER IF THE MARKET GOES UP OR DOWN.
There are closely related futures contracts that when traded in the appropriate ratios create unending oscillations of profit. When these contracts are properly traded there will never be a losing trade.
Im not sure in what way Oscillations of profits is a good thing, to me that sounds like your profits will move up and down, of fluctuate
Maybe I have misunderstood what Oscillate means adrianallen99
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Hmm I think I get the theory behind this now.
Basically you choose two closely related futures. You buy one, sell the other (assuming the relationship means they go in the same direction, if not then you buy or sell both.) Then I guess the profits will oscillate and you close both position when you are in profit.
Thats just a guess of course
Basically you choose two closely related futures. You buy one, sell the other (assuming the relationship means they go in the same direction, if not then you buy or sell both.) Then I guess the profits will oscillate and you close both position when you are in profit.
Thats just a guess of course
FetteredChinos
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AA,
i have actually been toying with something similar myself on the FX markets..
you know how people in the days of guaranteed orders used to "bracket" the market and hope for a one-way 200pip spike?
well i had a thought a few weeks back.
how about assuming that on balance the spike is more likely to end and reverse a trend?
for example, if cable has been trending down for the past few days/weeks, then a few mins before big US data we would go long cable, and short EUR/USD.
we are assuming that even if cable were to spike down, the amount of the move is likely to be limited owing to the recent lengthy trend.. therefore losses shouldnt be too great.
on the other hand, should we get a spike up, cable should move more (approx 1.5 times EUR/USD) and we pocket the difference after a few mins..
its all very rudimentary, and i havent backtested it, but it might have potential.
i have just realised this is probably completely off-topic.
my specialty.
FC
i have actually been toying with something similar myself on the FX markets..
you know how people in the days of guaranteed orders used to "bracket" the market and hope for a one-way 200pip spike?
well i had a thought a few weeks back.
how about assuming that on balance the spike is more likely to end and reverse a trend?
for example, if cable has been trending down for the past few days/weeks, then a few mins before big US data we would go long cable, and short EUR/USD.
we are assuming that even if cable were to spike down, the amount of the move is likely to be limited owing to the recent lengthy trend.. therefore losses shouldnt be too great.
on the other hand, should we get a spike up, cable should move more (approx 1.5 times EUR/USD) and we pocket the difference after a few mins..
its all very rudimentary, and i havent backtested it, but it might have potential.
i have just realised this is probably completely off-topic.
my specialty.
FC
ctrimble said:
It probably won't. From what other posts have said it sounds either like pairs trading (selling Sainsbury's / buying Tesco) or G-Forcing -making long and short bets on the same future, closing off the one in profit when the market moves and waiting for the market to rebound before closing off the second leg for a profit.
Pairs trading has its supporters - it will insulate you from a move in the Index, or in the underlying sector if done in the correct ratios. It will not protect you from movements due to takeovers, or a fundamental shift in the relationship between your two stocks.
G-Forcing is lunacy. You can carry on taking profits while a market range trades, but as soon as it breaks out, you'll be left with an uncovered position which may well reverse all profits. It's basically a tool for the emotional trader who can't bring themself to take a loss. You end up paying twice the spread for zero net gain if the market doesn't move - you have to close out both legs while insulated form any profits.
c6ackp
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This is my favourite bit...
Good luck with the system - you may learn something useful from it.
I traded a similar idea which I designed from scratch, for several months. It was awesome, but I knew it had this one potential flaw. I chose to ignore this risk and my positions grew and grew. Then it blew up - just like I knew it could.
You should backtest the system or DEMO trade the system for several months before you place any cash into a trading account (if you can do this then you will prove to yourself that you are potentially more than a gambler).
The human mind will throw "all caution to the wind" and lose all rationality when it's presented with such a dream - don't know why that is. If something sounds too good to be true, it is 99.999% of the time. Just ask youself what this guy's motivation could be to tell *everyone* about his great system - doesn't add up, does it? Most markets are super efficient these days - something priced at less than $200, will be worth around, er..., just less than $200 (unless you can add a lot of value to his ideas, that is).
Have fun tho,
Steve
Good luck with the system - you may learn something useful from it.
I traded a similar idea which I designed from scratch, for several months. It was awesome, but I knew it had this one potential flaw. I chose to ignore this risk and my positions grew and grew. Then it blew up - just like I knew it could.
You should backtest the system or DEMO trade the system for several months before you place any cash into a trading account (if you can do this then you will prove to yourself that you are potentially more than a gambler).
The human mind will throw "all caution to the wind" and lose all rationality when it's presented with such a dream - don't know why that is. If something sounds too good to be true, it is 99.999% of the time. Just ask youself what this guy's motivation could be to tell *everyone* about his great system - doesn't add up, does it? Most markets are super efficient these days - something priced at less than $200, will be worth around, er..., just less than $200 (unless you can add a lot of value to his ideas, that is).
Have fun tho,
Steve
the system is here BookFinal.pdf
Good luck with the system - you may learn something useful from it.
I traded a similar idea which I designed from scratch, for several months. It was awesome, but I knew it had this one potential flaw. I chose to ignore this risk and my positions grew and grew. Then it blew up - just like I knew it could.
You should backtest the system or DEMO trade the system for several months before you place any cash into a trading account (if you can do this then you will prove to yourself that you are potentially more than a gambler).
The human mind will throw "all caution to the wind" and lose all rationality when it's presented with such a dream - don't know why that is. If something sounds too good to be true, it is 99.999% of the time. Just ask youself what this guy's motivation could be to tell *everyone* about his great system - doesn't add up, does it? Most markets are super efficient these days - something priced at less than $200, will be worth around, er..., just less than $200 (unless you can add a lot of value to his ideas, that is).
Have fun tho,
Steve[/QUOTE]
Good luck with the system - you may learn something useful from it.
I traded a similar idea which I designed from scratch, for several months. It was awesome, but I knew it had this one potential flaw. I chose to ignore this risk and my positions grew and grew. Then it blew up - just like I knew it could.
You should backtest the system or DEMO trade the system for several months before you place any cash into a trading account (if you can do this then you will prove to yourself that you are potentially more than a gambler).
The human mind will throw "all caution to the wind" and lose all rationality when it's presented with such a dream - don't know why that is. If something sounds too good to be true, it is 99.999% of the time. Just ask youself what this guy's motivation could be to tell *everyone* about his great system - doesn't add up, does it? Most markets are super efficient these days - something priced at less than $200, will be worth around, er..., just less than $200 (unless you can add a lot of value to his ideas, that is).
Have fun tho,
Steve[/QUOTE]
