Originally Posted by mikejody

Vtam, I have attempted to simplify the rules, and to apply them to a 5K account. Can you see if this is all correct?

$5,000.00 starting account

Buy EURJPY Buy AUDJPY
Sell EURUSD Sell EURAUD
Buy USDCHF Buy NZDUSD
Sell EURGBP Buy USDCAD
Buy GBPCHF Buy EURCHF
Sell AUDUSD Buy GBPUSD
Sell CHFJPY

.10 initial lot sizes for 5,000.00 mini account size
When equity = minus $50.00 add .20 to every pair
When equity = plus $50.00 from last high, exit the extra lots only (keep initial lots on)
If after adding .20 to every pair (basket having dropped $50.00), do not double again until basket is minus $150.00. Then add .40

Where would we add .80, and so on? After how much loss on the basket?

Is this all correct?

Finally, how has your other trade version of this done, in comparison to the above pairs? The one that is more "market neutral"?

Thank you again. I'm going to open this trade on Monday.

Originally Posted by vtam

That looks like it's right if done in a mini account. This is how the adds would look

$4950 balance go to .20 lots
$4800 balance go to .40 lots
$4450 balance go to .80 lots

If it drops more than that - let me know. I have have never added more than 2 times (from .20 core position to .40 and .80) the entire 3 months. I have yet to go to a 1.6 lot.

The more market neutral has done well. It is up 13.5% in the same time, but I have actually seen larger swings in equity. I used a straight increase instead of a martingale. I also started with larger lot sizes. On a $100k account I started with 1 full lot on the 8 neutral pairs. When it dropped 1% I add only 1 full lot instead of 2. When it dropped another 2% I added another full lot. No doubling up. Is that clear?

Originally Posted by boostrade

end of January to beginning of March, nearly all the currency pairs on your list are against you, e.g. gbp/chf down 1300+pips, eur/jpy down 700+pips, eur/usd down 300+pips, usd/chf down 300+pips...how are you going to manage it?
I think it's a good idea towards hassel-free trading. However, you are risking your trading life on the hope that the high interest currency pairs continue to go north, with only minor corrections, and you minimize the lot size hoping it can survive the correction.
My observation on what happend from Jan to March is: you may survive the one month correction, PROVIDED that you dun double up your lots. However, if you dun double up, you maybe still losing now, and you'll be suffering mentally everyday to see the floating loss.
So I admire your idea, but I think your system is not robust and mature enuff yet. Maybe that's why u r only doing the demos. One suggestion is to make a near perfect hedging with your ring of currency pairs, and that involves taking account the average daily range of each pair and their pips value.

Originally Posted by Dan S

Hi all.
I just checked the swap rates at my broker efxgroup.com and I am very surprised

The 13 pairbasket is giving me a negative swap of 9.42% compared to the ibfx mini of a positive 6.82%.
The currency nutral basket is even worse with a whopping negative 18.45%.

Basicly there are pairs that have similar swaps to ibfx, but than there are a few pairs with greatly different swaps that destroy the basket, e.g.:

SELL EUR/AUD -4.29% (IBFX +0.91%)
BUY NZD/USD -3.10% (+0.32%)
BUY GBP/CHF -6.60% (+1.66%)
SELL CHF/JPY -3.20% (-0.33%)


How can tere be so much differences in the swap rates?

Originally Posted by mikejody

Yes, perfectly clear, thank you.

Another question; what has been your worst case scenario draw down? The reason I am asking is because it would seem like we could add more lots, like 10 times more, and still be well-safe from problems.

My little 5K account has moved plus or minus only about $3.00 today.

Have you considered adding lot sizes to the initial position?

Originally Posted by vtam

The best thing about this method so far is that it does not require you to EVER LOOK AT A CHART AGAIN! How sweet it that?

We were selling this system for $199 at CurrencyProfits.net but will now be giving it away free. It has been running for 3 months on a demo. We are actually testing 3 different versions of it. I will give the login info to the demos to anyone who wants to see them - just PM me. Shoot me your email and I can email you the rules as well. It's avaialbe for anyone who wants it. Maybe use this thread to throw out ideas to improve it and to create and EA for it?

You can see two of the accounts were open on 4/06/07 and one is up 13.5% and the other is up 11.5%. The largest drawdown seen during this test is about 8% in one and 10% in the other.

Why is this the safest Martingale? Just check the statement. Notice in one of the statements that it had the CAD going about 1000 pips against me. Most martingales would lose their shirts and would have blown up...... yet this thing thrives and continues to collect interest.

Maybe someone can program it?

Originally Posted by boostrade

end of January to beginning of March, nearly all the currency pairs on your list are against you, e.g. gbp/chf down 1300+pips, eur/jpy down 700+pips, eur/usd down 300+pips, usd/chf down 300+pips...how are you going to manage it?
I think it's a good idea towards hassel-free trading. However, you are risking your trading life on the hope that the high interest currency pairs continue to go north, with only minor corrections, and you minimize the lot size hoping it can survive the correction.
My observation on what happend from Jan to March is: you may survive the one month correction, PROVIDED that you dun double up your lots. However, if you dun double up, you maybe still losing now, and you'll be suffering mentally everyday to see the floating loss.
So I admire your idea, but I think your system is not robust and mature enuff yet. Maybe that's why u r only doing the demos. One suggestion is to make a near perfect hedging with your ring of currency pairs, and that involves taking account the average daily range of each pair and their pips value.

Originally Posted by vtam

I have but wouldn't. A buddy did and he is up 26% in 4-5 weeks. The reason you can't is because when the carry trade unwinds, it will be brutal. This strategy may not withstand a complete collapse. It can handle a few thousand pips on a few pairs. But if we get a 1998 collapse - it coud be ugly. In 98 the USDJPY dropped 2000-3000 pips in 3 days! ( I can't remember the number and don't have a chart in front of me.)

In February in safe mode when a few pairs went about 1000 pips against this thing would have lost about 18% in safe mode.

It is deceiving when the pairs move 100-200 pips in a few days and your equity doesn't change a bit. You think it's safe to leverage up, yet it's not.

Be patient and take the 2-4% a month in my opinion. Hopefully live to play another day when it unwinds!