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MYQ - Findex Trading - Chema01

Some_Ideas

The transition in trading

In all my years of experience I can classify the traders I have met into one of these two categories: Those who talk about systems, devote themselves to making strategies, read many books and timidly apply what they have learned. And on the other hand traders who, simply, dedicate themselves to trading.

I can say that building trading systems is fun, but it’s not exactly the same as trading. At some point we will have to take the leap to start really engaging in this activity.

A lot of paralysis analysis. Adapt what you find useful and reject what you find unsound. In particular, keep what suits you best. Always be honest with yourself and avoid following others systematically.

I am more impressed by one who has put an event into practice 10,000 times than by one who has done 10,000 events once… If you spend too much time thinking about something, finally you will never do it again. A lot of paralysis analysis (Rob booker).

__CashBis

From June 24, 2019 to June 30, 2019

FINDEX strategies…

Momentum total trades per week: 0
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

4 Likes

It’s good to be able to read your updates again, @Chema01!

1 Like

Thank you very much Ignacio, the pleasure is mine. I am very glad that the community forum is fixed :blush:

3 Likes

Some_Ideas

Sensations

If I have open positions that go against me and make me feel bad, what I do is close them as soon as possible. If they are in my favour, I keep them open and control the risk as best I can. The latter is the most important part of trading.

If there is a position that is making us feel bad, the solution is very simple: Close it, because there will be time later to re-enter (Rob Booker).

IMG_Gestion_UpTitWeek

From July 1, 2019 to July 7, 2019

FINDEX strategies…

Momentum total trades per week: 9
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

3 Likes

Some_Ideas

It can go wrong

What is the main reason why trading fails: Strategy, bad analysis, execution costs? No, none of those reasons. Those are just excuses traders use to justify their losses.

What really works is to assume that we may not be right. Assuming that the ego is playing tricks on us. The ego leads us to fight the market until we are defeated. It took me years of banging my head against a wall until I was able to accept the above statement.

Now I look at the market differently. I only have two impulses when I place an order in the market: Make a small, quick profit or minimize my losses as much as possible. As a result it is not strange that I stop taking advantage of favourable setups or that I leave on the table an enormous amount of pips that I could have added.

The great gurus don’t stop telling us: Let the profits run and cut the losses immediately. But in reality 90% of the winning positions will turn negative if we let them run, especially in the Forex market.

It’s much easier to assume from the outset that the trade could go wrong and risk as little of our capital as possible on each position (Boris Schlossberg).

__CashBis

From July 22, 2019 to July 28, 2019

FINDEX strategies…

Momentum total trades per week: 0
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

4 Likes

Some_Ideas

A great skill

If you operate as a great part of the traders do, expecting big trends, you will be dedicated to add losers and will operate without stops. This will lead to bankruptcy.

However, if you use a robust entry system with statistical advantage and good capital management, taking advantage of small price impulses, then the results will be in your favour.

Good traders have a great ability to reap profits, close winning positions, open new ones, close winning positions again, etc.

Markets are like the sea. Waves follow one another making the water rise and fall (Boris Schlossberg).

IMG_Gestion_UpTitWeek

From July 29, 2019 to August 4, 2019

FINDEX strategies…

Momentum total trades per week: 2
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

2 Likes

__Findex2

The exchange rate is always given for a currency pair. A currency by itself is worthless if it is not compared to another currency or other reference, such as gold.

Therefore, whether in a flexible exchange rate or fixed exchange rate system, one always speaks of RELATIVE VALUE.

If a currency is very attractive to foreign investors and speculators, with high demand and attractive interest rates in a stable socio-political environment, it can be said that its value should go up. Now, if we face another even more attractive currency, the exchange rate between the two should go the other way.

2 Likes

__Fundamentos2

FINDEX is an AUTOMATIZED STRATEGY that takes into account, first of all, the CONTEXT based on the RELATIVE VALUE of currencies. What it does is to compare the strength of the two currencies of each cross. This factor constitutes the first sign of an entry into the market that goes in favour of the strongest currency.

The system also uses an EXPONENTIAL MEDIA that indicates the trend and the value of the ADX to know the strength of it. They are two simple technical signals that serve to CONFIRM the signal obtained previously.

2 Likes

Currency_Index_MomentumTitulo03

FINDEX offers three different inputs. The first one is a 'market order’, which is carried out at the same time as the described signals are given. The second and third are ‘pending orders’, which will only be executed if the price initially advances in favour.

The RISK is diversified into nine pairs made up of the major currencies. In each position a maximum loss of 0.2% of the total account is established, to avoid large losses in the case of drawdowns. All positions let the profit run if the price moves decisively.

The operations are intraday and a very active MANAGEMENT is carried out. There are several exit rules that are applied, to secure the position if necessary, before reaching the profit target or stop loss.

1 Like

__CashBis

There will be times when the strategy is stopped while WAITING for a favourable situation to operate, according to the established FILTERS.

An attempt will be made NOT TO OVER OPERATE.

2 Likes

Some_Ideas

How to place stops

Use large stops of losses and small stops of profits. Change your concept of the risk benefit ratio.
Our trading tactics are designed to obtain a large percentage of winning trades based on many small profits, as is the model of insurance companies. In such a volatile market, where the price goes up and down like the waves at sea, having tight targets helps us achieve better results (Boris Schlossberg).

Over the years I have discovered that placing stops further away from the appropriate level, at points where my underlying trading idea is clearly wrong, helps prevent them from skipping me when the idea is right (Henry Carsten).

IMG_Gestion_DownTitWeek

From August 5, 2019 to August 11, 2019

FINDEX strategies…

Momentum total trades per week: 5
Reversion total trades per week: 0

2 Likes

With a 0,3%/0,6% of daily profit and a loss of 2,7% daily (like yesterday) and a 36,74% of winning days all, how can large stop loss be a good choice for your strategy? With a bad day you can cancel 10/5 days in profit.

As Boris Schlossberg advises, it can be a good tactic to look for many small profits, as is the model of insurance companies. Indeed, in this model there are also losses that tend to be greater in amplitude, but smaller in number.

The key to the system is to achieve a success rate of over 60%.

The Findex strategy has not always followed this way of operating, although its evolution brings it closer and closer to this model. Such a changing market, where it is difficult to find lasting trends, forces us to adapt to the environment.

The comment received would be very valid if the real numbers corresponded to the above: indeed, with those numbers the strategy could never be a winner.

However, if there are bad days such as August 15, when it lose don’t always get such negative results and on positive days it also gets longer profits. In fact, in this system there is no fixed limit to the profits, but the operation remains open until it is detected that the advance of the price is weakened.

On the other hand, the ratio of winning days exceeds 60% to date, which would make it possible to use strategies such as those advised by Schlossberg.

2 Likes

Some_Ideas

Abandon a trade without ceasing trading

The best we can practice is how to lose without having an unpleasant feeling and without complaining too much.

If you want to have a long and profitable career as a trader, learn how to get out of a trade on time without abandoning trading forever (Rob Booker).

IMG_Gestion_UpTitWeek

From August 12, 2019 to August 18, 2019

FINDEX strategies…

Momentum total trades per week: 8
Reversion total trades per week: 0


3 Likes

I like your posts Chema01, they are very educational, keep them up!!!
I wish tons of pips for you!

I’ve been doing a bit of reading on ‘divergence’, and I noticed in this particular Darwin, if I am reading the divergence correctly, that investors are earning a slightly better return than the underlying trader/strategy.

Is it rare to see this?

You can setup a filter to find the answer without asking :no_mouth: and waiting for an answer
grafik

1 Like

Thank you very much for the encouragement Forexintradiadarwin, I keep trying every day to collect information that can be useful to other users of the forum. It is encouraging to see that it is appreciated :blush:

1 Like

Indeed Dingo34, you are right. The Darwin MYQ has historically had a positive divergence which, coupled with a very low VaR, makes investors more profitable than the underlying strategy when things go well.

On the negative side is that, in the case of bad results the opposite happens. Investors lose more than the trader’s strategy. In this sense, we always seek to cut losses as soon as possible so that investors are not harmed.

Some_Ideas

How to trade

There are a million different ways to make money in the financial markets. We just have to find one that works.

Basically there are three types of traders who approach the markets…

There are those who operate without any kind of strategy in an impulsive way, without discipline or structures. They enter as tourists a market full of thieves.

Then come those who agree with a strategy and have intermittent successes. They usually change strategies frequently. To this type of operators belongs the majority.

Finally there are those who represent the elite. They usually trade one setup and only one. They do it for years, taking money from the market with the regularity of a robot. What makes them so good is that they know their strategy in detail and detect when it works and when it does not. They know which products detect their pattern and which are failing. This knowledge does not come alone. It requires hours of observation and adjustment, as markets change all the time (Boris Schlossberg).

IMG_Gestion_DownTitWeek

From August 19, 2019 to August 25, 2019

FINDEX strategies…

Momentum total trades per week: 3
Reversion total trades per week: 0


1 Like