Currency Cocktail Trading

DedMatvey

Junior member
10 0
Currency Cocktail/Proportional Trading

A 100% different approach to FX trading.
All decisions to be taken are based on very simple calculations
we use in ordinary day-to-day life.
Ideal for those who prefer quiet ways of getting profit buying/
selling currencies.
Those interested are welcome to learn more...
 
Last edited:

TheLastBear

Active member
125 2
Re: Currency Cocktail/Proportional Trading

A 100% different approach to FX trading.
All decisions to be taken are based on very simple calculations
we use in ordinary day-to-day life.
Ideal for those who prefer quiet ways of getting profit buying/
selling currencies.
Those interested are welcome to learn more...

Sales pitch or do you plan to share more (please do not PM me)?
 

DedMatvey

Junior member
10 0
Re: Currency Cocktail/Proportional Trading

Sales pitch or do you plan to share more (please do not PM me)?

Thank you for replying.
No sales pitch, hate things like that, too.
I sincerely hope to share what you may find interesting and useful for earning
profit with currency trading.
 

nomindtrader

Newbie
5 1
"All decisions to be taken are based on very simple calculations
we use in ordinary day-to-day life."
What is the simple calculation which you are referring to here ? Can you please explain with examples?

"Ideal for those who prefer quiet ways of getting profit buying/
selling currencies."
Can you kindly explain the strategy behind "making profit buying/selling currencies"?

There u go - 3 questions as requested.
 

DedMatvey

Junior member
10 0
"All decisions to be taken are based on very simple calculations
we use in ordinary day-to-day life."
What is the simple calculation which you are referring to here ? Can you please explain with examples?

"Ideal for those who prefer quiet ways of getting profit buying/
selling currencies."
Can you kindly explain the strategy behind "making profit buying/selling currencies"?

There u go - 3 questions as requested.

What is the simple calculation which you are referring to here ? Can you please explain with examples?
This refers to risk management. Every day we get into lots of situations when we have to calculate risks: crossing a road, drinking alcoholic drinks, planning to purchase something expensive etc. So we all are very experienced in this. RM in forex is just the very same thing, nothing special.

2. After you have placed a trade with calculated risk you simply forget about your trading account and do whatever you wish... No nerves, no worries... You can check what is happening on it at any time... If you see a little minus, you don't do anything and keep your trade open. You close your trade when you see 1%+ profit of your current balance.

3. Using CC name I mean a handmade mixture of different currency pairs in different proportions - this cocktail makes one trade (which may consist of two/ three/four/... any number or pairs, some of them you buy and the others you sell). While staying open, some pairs may show minus whereas the other ones plus - your profit is when the plus exceeds the minus - you close the trade/all the pairs at the same time.
As the drawdown you see with the open (risk calculated) trade is never troubling you, it never makes sense to close a minus trade. So with the number of closed trades growing, your balance (=equity) is growing too.
 

nomindtrader

Newbie
5 1
What is the simple calculation which you are referring to here ? Can you please explain with examples?
This refers to risk management. Every day we get into lots of situations when we have to calculate risks: crossing a road, drinking alcoholic drinks, planning to purchase something expensive etc. So we all are very experienced in this. RM in forex is just the very same thing, nothing special.

2. After you have placed a trade with calculated risk you simply forget about your trading account and do whatever you wish... No nerves, no worries... You can check what is happening on it at any time... If you see a little minus, you don't do anything and keep your trade open. You close your trade when you see 1%+ profit of your current balance.

3. Using CC name I mean a handmade mixture of different currency pairs in different proportions - this cocktail makes one trade (which may consist of two/ three/four/... any number or pairs, some of them you buy and the others you sell). While staying open, some pairs may show minus whereas the other ones plus - your profit is when the plus exceeds the minus - you close the trade/all the pairs at the same time.
As the drawdown you see with the open (risk calculated) trade is never troubling you, it never makes sense to close a minus trade. So with the number of closed trades growing, your balance (=equity) is growing too.

i mean yeah ofcourse....next u r going to say leave it to the Apollo the God to look after our trades....r u for real?
 

TheLastBear

Active member
125 2
I am sorry to tell you Dev, but you did not really re-invent the wheel here and basically stated common knowledge. It is common practice to analyze the market, identify your entry level, set your stop loss (or hedge) level as well as your take profit level and then execute your trade without worrying about it anymore.

You do the work prior to the execution. Once I enter a particular trade I do not adjust my levels anymore and most successful traders do the same. I thought you had some great new trading approach here, but you have mentioned what I wold tell every new trader to do.
 

DedMatvey

Junior member
10 0
I am sorry to tell you Dev, but you did not really re-invent the wheel here and basically stated common knowledge. It is common practice to analyze the market, identify your entry level, set your stop loss (or hedge) level as well as your take profit level and then execute your trade without worrying about it anymore.

You do the work prior to the execution. Once I enter a particular trade I do not adjust my levels anymore and most successful traders do the same. I thought you had some great new trading approach here, but you have mentioned what I wold tell every new trader to do.
Hi TheLastBear,
I think it is I who is to be sorry, not you, because I feel sort of I have disappointed you in some sense... Should I take it as that you urge me on quickening my pace?
Well, speaking to you personally, I agree about everything you say in the first paragraph: analyze > make decision > place a trade - nothing to invent or re-invent or even insert in this procedure. If you mean my "100% different", it refers
to HOW to do it and WHAT the result of the process is - this is what I want to share hoping to be helpful to many traders as well as ask what they think about it and, hopefully again, have a piece of advice here and there in exchange.
So I suggest that we forget "re-invented"...
Making up for your disappointment, here are a couple of things I FOUND at the final stage of a very long and scrupulous work:
- there are a number of CCs whose historical range is just between 100 and 200 USD (compare: EUR/USD hr is 8,000 USD (high 1.63 - low 0,83 = 8,000), i.e.
40 to 80 (in some cases more than 100) times less - you know WHAT it means!!!

- I found proportions between the account balance/equity and a trade size with
which the drawdown has never HISTORICALLY exceeded 20%!

- how to make rollovers to ALWAYS be with profit!

- that EVERY single trade can and MUST be closed in profit!
Hope you can find something real new in the above.
 

TheLastBear

Active member
125 2
Hi TheLastBear,
I think it is I who is to be sorry, not you, because I feel sort of I have disappointed you in some sense... Should I take it as that you urge me on quickening my pace?
Well, speaking to you personally, I agree about everything you say in the first paragraph: analyze > make decision > place a trade - nothing to invent or re-invent or even insert in this procedure. If you mean my "100% different", it refers
to HOW to do it and WHAT the result of the process is - this is what I want to share hoping to be helpful to many traders as well as ask what they think about it and, hopefully again, have a piece of advice here and there in exchange.
So I suggest that we forget "re-invented"...
Making up for your disappointment, here are a couple of things I FOUND at the final stage of a very long and scrupulous work:
- there are a number of CCs whose historical range is just between 100 and 200 USD (compare: EUR/USD hr is 8,000 USD (high 1.63 - low 0,83 = 8,000), i.e.
40 to 80 (in some cases more than 100) times less - you know WHAT it means!!!

- I found proportions between the account balance/equity and a trade size with
which the drawdown has never HISTORICALLY exceeded 20%!

- how to make rollovers to ALWAYS be with profit!

- that EVERY single trade can and MUST be closed in profit!
Hope you can find something real new in the above.

As long as it works for you and you are happy with the results, keep doing it. I would never tell a traders who is satisfied to make adjustments.
 

DedMatvey

Junior member
10 0
As long as it works for you and you are happy with the results, keep doing it. I would never tell a traders who is satisfied to make adjustments.
Thank you TheLastBear, but I don't mean any adjustments.
Honestly, I am not even sure what it is, perhaps it feels just somewhat boring to be
all alone in this corner of the room, maybe something else...
But there is one thing in my method that gives me no peace of mind. It seems to me, It could be much more interesting to team up with some other people of my type for further development of this business.
 

TheLastBear

Active member
125 2
Thank you TheLastBear, but I don't mean any adjustments.
Honestly, I am not even sure what it is, perhaps it feels just somewhat boring to be
all alone in this corner of the room, maybe something else...
But there is one thing in my method that gives me no peace of mind. It seems to me, It could be much more interesting to team up with some other people of my type for further development of this business.

Well, good luck finding people who want to partner up with you.
 

DedMatvey

Junior member
10 0
Well, good luck finding people who want to partner up with you.
My sincere thank you... though I can clearly feel your sarcasm.
What beats me is why traders show so much indifference to what I am trying to share with them. Is it really so that everybody here is making hundreds per cent every month and they are sure they already know everything? What is so wrong about what I am saying - I am not asking for any money, I am not telling lies, I am not cheating anyone into any scam... And I can find no one to even listen to me or at least ask me a simple question... If my method is so unusual, it does not mean it is not worth at least having a look at it.

Well, one more attempt... and the last one, I swear. I will never bother you again if it fails.
But, please, see the picture I made specially for you and read the text that follows... I still hope I can have a piece of advice from you instead of sarcasm.
EUR/USD in the picture is not a chart, it is just to show graphically the difference
between the risk management tasks for traditional methods and mine.
Below are a few abstracts which belong to some very reputable in financial world
people to whom I showed my product and asked their opinion.

- Ok, I think I am beginning to understand your system now. In a sense, it is the
relationship of each pair within the group to each other, or in other words, the
correlation of these pairs within a group and how they behave with each other.

- It is very surprising to me that there exist currency groupings that can be traded long/short in such a way that as a group they stay within 200 pips for 15+ years. I've certainly never looked into anything like this, but intuitively it's extremely surprising. It's hard for me to say that it must have been a coincidence (as is my gut feel for a lot of such "discoveries") since 15 years is a long time and under 200 pips is awfully little deviation. In any case, most impressive results.

- Getting 1000 out of 1000 trades is certainly most impressive. The only area I know of where this type of consistency is typically possible is market-making. So what you have done is most impressive. I don't know your algorithm but from the sounds of it it is conceptually similar to finding correlations, even if the exact computations might be different and you're looking at more than 1 pair at a time.

- As far as whether this can be applied to... You're in a much better position than me to judge this. I wouldn't have guessed this could be possible for currencies. My other question is why you would even want to apply this to...? If you are able to make consistent profits in the forex market, why not just stay there (and/or try to find a hedge fund that would buy your system for a large sum)?

- Thanks for posting again. I certainly appreciate your accomplishments but I don't want to freeload on the hard work that you did. In fact, I don't think your explaining your approach in this level of detail on a public website is a good idea -- it gives strong hints to a whole lot of people with time and resources to do reverse engineering and steal your idea from you.
This industry is not exactly built on honor.

- One thing I would be very interested in seeing is a currency grouping that didn't move over 200 pips over 15 years like you mentioned. But again, I think your priorities should be to continue your own trading, obtain some leverage to boost returns, and not describe too much of your system on public forums. Best of luck!

- One other thing, at the end of the day, it is probably important that you don't give away your system by telling people how it works as some people may try to copy it.
(Esp algorithmic traders that can do what you have simply by programming it all into an algorithm and doing it automatically). This could be your next step....

There is a minor detail I can correct in one of the above abstracts: though it has been a long time since I stopped counting them, I think the number of trades
must be more than 2,000.
I wonder whether it can help me with my effort...
 

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