Smart Squared!

[hking]

VJ,
Can you tell us what changes you have made since the frightening GBPJPY trade?
It will help us decide our account sizing especially now we have USDCAD facing the same issues as GBPJPY.
E.g. are you still sticking with 25% max DD for 1 trade?
Any changes in spacing between trades when a trade goes bad and you are adding to it?

We got out of GBPJPY without that much damage. Whether it is luck or skill or both, I don't care for now but I think many of us would like to know what are the changes that you mentioned.

Thank you!

[Sherif]

VJ , you made some non-fifo trades today. That's up to you, but when you say you are fifo compliant, it causes issues with fifo accounts when you are not.

Guess it was a mistake. . Specially the second trade

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[Vidster]

Guess it was a mistake. . Specially the second trade

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I am sure it wasn't a mistake. He tried to make a good trade (check TP level), however, market continued grinding higher and he stopped out. And this is what I DO LIKE a lot. Stop out if trade doesn't go as you wanted. He cannot add more shorts on and wait/hope that market turns. These last two trades are what I say "damage control" and he has proved to me as a responsible trader with this act. Respect for that!

Regarding FIFO, this SHOULD NOT be something that has highest priority. Top priority should be to make money and avoid risks as much as possible. Fifo is secondary. If it makes troubles for some of you I agree that "fifo compliant" phrase should be deleted. Again, trader should make money and not bother with other stuff. However, I fully understand you guys that have issues with this rule.

I am watching the market and if oil doesn't turn up which I doubt, this bi*ch can and probably will grind higher. After small pullbacks. Best way to ease off pain a little bit would be to partially cut the trades on first possible pullback. I see strong support at 1.3150/1.3160 if market comes down. If not and for protection purposes buy stop or stop loss above the market would do the job too. The sooner the better.

Well one resistance is right here where we are (1.3210-25) but while is has been consolidating for some time it doesn't feel strong anymore
Next resistances are 1.3250 and 1.3280 but I believe this is too far to be just waiting.

In my humble opinion this is.

[oportunis]

I think they were mistake trades. Probably his EA opened and he closed it, but it opened again so he deactivated it and closed it at loss. He is not trading manually like that. If he opens a manual trade you see fix SL, but to be honest his manual trades end up losers most of the time, but at least the risk on them is low so it's OK. I don't know why he opened trade on Friday before news and weekend. Now we are in huge DD. I'm affraid we will get to SL soon

[Sherif]

I think they were mistake trades. Probably his EA opened and he closed it, but it opened again so he deactivated it and closed it at loss. He is not trading manually like that. If he opens a manual trade you see fix SL, but to be honest his manual trades end up losers most of the time, but at least the risk on them is low so it's OK. I don't know why he opened trade on Friday before news and weekend. Now we are in huge DD. I'm affraid we will get to SL soon

80% of the trades we opened in friday got into trouble .. donnu if this has any significance. ...

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[oportunis]

80% of the trades we opened in friday got into trouble .. donnu if this has any significance. ...

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This is what I was writing a few months ago that he should avoid trading on Friday, because every trade we got hit with SL started on Friday. Plus if we don't trade Fridays we don't have to worry about weekend gap. Anyway it's too late now...

[primi]

Regarding FIFO, this SHOULD NOT be something that has highest priority.

And it makes no difference at all to the end result. FIFO, LIFO or any other combination = you always end up with the same result once the whole basket is closed. The only thing that changes is your balance curve and that one is completely irrelevant. Equity matters and it stays exactly the same.

[Vidster]

Oil dropping like a stone, usdcad no reaction. Not the greatest sign.

[shawntan]

Vijay I urgently require you to confirm if you are managing smart scalper and smart square separately

If smart scalper hits 25 percent smart squared hasn't hit the max Dd allowed, are you going to terminate the trades?

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[oportunis]

Smart2 will close trades if scalper closes trades. Smart2 has 0.5x risk of scalper so 25% on scalper is 12.5% on smart2.

[shawntan]

Smart2 will close trades if scalper closes trades. Smart2 has 0.5x risk of scalper so 25% on scalper is 12.5% on smart2.

Great thanks! I was worried he would wait it out till smart 2 hits 25 percent along with smart scalper

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[SmartTrader]

Hey Guys,
I may manage scalper and smart2 differently. I don't have much time on scalper. However I want to wait little more and take smaller losses if possible on smart 2

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[Vidster]

I still cannot understand why would one let 1/4th of the account wanish on one single trade idea...
And it seems this drawdown thing has been happening more and more often?

[Nick]

I still cannot understand why would one let 1/4th of the account wanish on one single trade idea...
And it seems this drawdown thing has been happening more and more often?

We're a long way from that level, chances are we'll still be able to recover without taking a major loss.

Yes, it's happened twice now this month that we've been in a bit of trouble, but it isn't necessarily significant. Through the random distribution of losses we're bound to hit a couple of bad patches in a row at some point.

Vijay has shown that he can cut the trades if needed and rebuild, so I'm not personally concerned. This is just part of what happens when we shoot for above market returns.

[jprize]

I am confident that VJ can come through this as he has in the past. Something I really appreciate about him is that he has remained humble enough to be able to learn from mis-steps, and improve. Unfortunately, I think I will need to stop following, since I am stuck with U.S. FIFO rules. I know this is no concern to most of you. But non-FIFO trades cause big issues with FIFO brokers.