Satang FX Signal/MAM - minkw

[Amadorian]

But just using a lower leverage doesn't make your system less vulnerable, your drawdown may be smaller, but also the performance. It may look better on the myfxbook graph, but ultimately it's the same thing with smaller numbers.

Viper keeps adding to losing positions, for me that's averaging, the hedging doesn't make any difference. But what's your definition of an averaging strategy?

[oportunis]

Viper doesn't average in. He adds to losers and waits till they get in green for 5-20 pips and closes and does this all the time. Probably due to rebates he gets for every trade. Averaging out means he would keep those trades till they reach BE, which he doesn't. And recently he started to hedge, because he saw he was wrong and had to protect his balance chart. He uses low leverage, so he will probably survive this, but the performance is really bad. He makes less than 0.5% a month and in DD of over 10%.

Unfortunately it looks like SteadyCaputre is going the same road as Viper this year, maybe he will have better results with adding his gold scalping to what he already has. We shall see what happens...

Keep up the good work minkw and fast recovery to all

[Lithium]

[genkisan]

I know this is hindsight but audnzd is currently reversing.
If the signal had used the previous 6% DD rule, the loss might have been avoided?
Just wondering if the change in DD rule from 6% to 5% is giving the signal too little wiggle room.

[Xinvestor]

This is a pretty good system with decent DD: profit ratio. Averaging is not my cup of tea but it seems to work ok in this case. I also think that the system will suffer a much larger DD at some point like someone said, when it suffers two or more losses in a row. Then it will take 3+ months before it comes back. For now it happened 2 times but it was very colse to this happening another 2 times,

[minkw]

Viper doesn't average in. He adds to losers and waits till they get in green for 5-20 pips and closes and does this all the time. Probably due to rebates he gets for every trade. Averaging out means he would keep those trades till they reach BE, which he doesn't. And recently he started to hedge, because he saw he was wrong and had to protect his balance chart. He uses low leverage, so he will probably survive this, but the performance is really bad. He makes less than 0.5% a month and in DD of over 10%.

Unfortunately it looks like SteadyCaputre is going the same road as Viper this year, maybe he will have better results with adding his gold scalping to what he already has. We shall see what happens...

Keep up the good work minkw and fast recovery to all

Yes that's correct, viper added to losers and so do many other traders, however he tried to scale out instead of averaging out,

to average out is exactly what you stated, it means, find the average price of all the positions and close out at break even,

on another note the aud nzd yes it looks now currently we could have escaped this situation, however I would have broken my rules, and that is something I'm not willing to do, the pair could have kept going against us and then all of a sudden a 4%dd turns into a 10%dd, I am now not personally able to take that kind of risk, as I've banged on before a 4% loss is much easier to recover from then a 10% loss, we are currently in good territory and am shooting for a -1.5% loss for this month

will another scenario happen in the future? Yes of course as it's all apart of the FX game, but if a strategy can contain losses to a minimum and move on we will all be profitable for many years, as stated before it's been over a year since I've had a losing month, and while August last year I cut at 3% it was still profitable for that month.

does averaging work? Yes and no, one can keep adding until dd gets out of control and blows up, however if a trader has a set max dd and is willing to accept a loss that is fine and a good road to recovery

[corni]

The only problem I see with averaging is that it is very hard to rate the performance of such a strategy because of the statistics. If the loss case only occurs 1-2 times a year, even a 5 year live performance might not reflect the "true" average performace. Still I agree that it can work very well especially on small crosses that tend to range more historically.

[Amadorian]

Yes that's correct, viper added to losers and so do many other traders, however he tried to scale out instead of averaging out,
to average out is exactly what you stated, it means, find the average price of all the positions and close out at break even,

does averaging work? Yes and no, one can keep adding until dd gets out of control and blows up, however if a trader has a set max dd and is willing to accept a loss that is fine and a good road to recovery

Alright, if that is your definition, i'm okay with it.

Well, i've seen 10 out of 10 traders fail with these kind of strategies, so i don't think averaging works, But maybe you'll prove me wrong, I'll shut up now, and watch from the sideline

I also think that the system will suffer a much larger DD at some point like someone said, when it suffers two or more losses in a row. Then it will take 3+ months before it comes back.

Exactly, and in these 3+ month there is a big chance of another loss, and you get stuck like SmartScalper.

[minkw]

Alright, if that is your definition, i'm okay with it.

Well, i've seen 10 out of 10 traders fail with these kind of strategies, so i don't think averaging works, But maybe you'll prove me wrong, I'll shut up now, and watch from the sideline





Exactly, and in these 3+ month there is a big chance of another loss, and you get stuck like SmartScalper.

No please don't "shut up" as constructive criticism is good, i am open to all opinions, what I was trying to advise is that the averaging strategy has both positive and negative aspects, it's a powerful tool to trade these markets but if used in the wrongly it can be disastrous,

smart scalper I believe is something different, his account balance and lot sizes he could only average 3-4 positions against his entry and he had a hard stop at 30%? Sorry I cannot remember, it always came close, well he actually got hit quite a few times, but one time he exceeded the 30% and he lost the respect of his followers, even Nick stated he blew his chance of running multi million dollar mams, and for that he paid the price,

This might come across as aggressive but honestly the intention is not

[minkw]

I try to hide all open positions to stop redistribution of my trading,

I do know of 2 people who are doing this at the moment and have approached Nick on how to combat this, while i can cut them off they can come back under a different username and it's not going to do any good in long run, Nick suggest I contact them to collaborate but currently my plate is full and it's not really affecting my trading in relation to liquidity with subs

[Xinvestor]

"There are currently trades open but the trader has hidden these from public view.
Subscribe to this signal to view the open trades."

Why do you hide your open positions?

Of course he hides open trades. He is running a business and doesnt want people to have free accesss to his trading. If you want to copy or invest, then you have to pay for the service. Its that simple. If you were the supply side would you be supplying the product for free?

[Xinvestor]

Pretty much all the other signal providers show their open trades. I wonder how they manage? It just always seams that the strategies that use averaging, martingale and hedging always hide information.

Thats their decision. Besides, everyone knows what this strategy is and how trading is conducted. Nobody has to invest if they are not comfortable seeing open trades. The trader is not bound to open them to general public.

[Big River Man]

If that is the reason then I think the system should at least divulge how many trades are open and lot size. This tells a lot about the system without helping "redistributioners". I think anyone signing up for your system should know this information before hand.

Just look at closed trades it's all there. pretty self explanatory. If I had a signal i would hide open trades too.

[minkw]

Hey all,

sorry but I'm not to sure how the receiver works with signal start as I've only ever been a provider,

however with simpletrader I'm pretty sure once you add the receiver ea to the chart and enable trading it will open up any negative positions, that's well unless you disable any pairs in the dashboard

please feel free to pm me or email me at invest@satangfx.com if you have any questions

[Big River Man]

Does it open up all of the negative open trades when you sign up? SignalStart does. If a system has 10 trades in the red and you sign up for that system, as soon as you connect it opens up those trades on your account.

It opens all open trades that are in drawdown.