Comment by talisman on January 31, 2012 at 2:17am

the take home message for me here is that one should constantly be questioning oneself,  and know your own data for your own style.  many of your questions are not relavent to my style of trading.  The main thing is to question yourself.  Thats actually why i joined this group for the most part,  it keeps me accountable to myself.  Aside from the questions directly pertaining to very short term trades i do find that i can answer all the questions. questions 1,2,5,&9 in the last group are just mathematical diversions.  its good to understand the answers so you realize you dont neccessarily need to trade more to make more. enjoyable article.

Comment by MarlonF on January 31, 2012 at 7:49am

valid points pete.. dont ask me for answers though..

Comment by D U Eddie on January 31, 2012 at 8:09am

Hi m8, quiet day ,eh!

Comment by Peter jcp on January 31, 2012 at 9:21am

Hi D U - Hope the tradings going well m8 - I started this blog over the weekend when I was checking my stats- but did not get round to posting it to last night. Its 9.20am UK time on Tuesday morning - I have already taken and finished 2 postive trades this morning - and just learnt something new off one of my linears on a 3 minute chart. I have been using this particular set up for over 4 years- and now I spot something I had not see during that time. Amazing - I keep asking myself questions everyday- and dont worry Talisman and Marlon- I still have not got all the answers yet (lol) - Have a great day

Comment by Lisa on January 31, 2012 at 10:06am

I hope the quiz isn’t due till the weekend ...

Comment by Dimitar Kinov on January 31, 2012 at 12:41pm

Reading your blog, Peter, I remembered an anecdote:
"The German entrepreneur came in one small state, where all the time there was good weather. Under a tree lying on the back of a local resident. From time to time the tree fell around him ripe bananas. He slowly stretched out his hand and took the nearest and also ate it slowly . This situation is very surprised businessman and he said:
- Why do not you climb a tree and does not take a whole bunch of bananas?
- And why should I care?
- Why? You eat all you want, and the rest can sell on the market and make money.
- And why should I care?
- When you receive the money, you will be able to hire workers who have gathered for you more bananas.
- And why should I care?
- Why? You will have a lot of time and you'll be free to do whatever you want.
- And why should I care? I have plenty of time and so I'm doing what I want. "
And so the question:
How many bananas need to be completely happy?

Comment by 2ndSkiesForex on January 31, 2012 at 1:07pm

One thing I'd like to point out Peter which is something you've never addressed in regards to trading off your intraday time frames vs. 4hr charts;

One of your questions is 'How many wasted hours is your money active in the market – not making a positive return?'

You've always talked about this in relation to people who trade on the 4hr as wasting time because maybe they get 1-2 trades a day while your taking 4-5+.  Well, if most of your trading is based on intraday trading with you needing to be at the computer to make those intraday trades, what about when your sleeping?  Isn't that wasted time your not making money since its not active in the market?

Reason i ask is, those who do trade on 4hr time frames often have trades they make before they go to bed, and then wake up to realize they made money while their sleeping.  So while your main style requires you to be there present at the computer making most of your trades, while your sleeping, your money is not active and thus you are 'wasting time'.  Meanwhile, people who are making trades off the 4hr charts (or daily charts) and allow their positions to play while they are sleeping, are not 'wasting' their time and using it quite efficiently.

This is something I've never heard you address in your intraday vs. 4hr chart trading in relation to time being wasted argument.  

Overall, I think these are some good questions and many I have talked about over the years. In fact, my presentation at the ITC conference asked these same very questions to the attendees.

One question I think is not entirely appropriate is;
If in a day a currency pair as a rally of over 150 pips in 4 hrs – what amount of pips would you expect a good trader to be able to achieve out of these 150?

You assume all 150pip rallies are tradeable.  Many are not.  What if it was a central bank intervention and the brokers widened the spreads a lot?  What if it was too fast for manual execution or too volatile?  Just because there is movement, doesn't mean there are great opportunities in the market.  Since most traders here are trading manually, its important to recognize the limitations of this and how movement does not always = great opportunity.  Sometimes, the price action is very choppy, volatile and the spreads are bad.  

Trading should not be about grabbing pips just because there is movement.  it should be about recognizing opportunities that present good R:R ratios and are tradeable, then trading those.  Not 'hey, the market just moved, and you should be getting it, how much of that did you get?'

I think this is the wrong attitude towards trading. 

Just my thoughts and maybe im misinterpreting this question.  

But while im at it, let me run through these questions real quick and will test myself by doing it inside 5mins;

1.1 for the fund or for myself privately?

1.2 yes on both accts
1.3 for the fund or for myself privately?
1.4 for me privately, yes, for the fund, will have to check but likely max of 5%
1.5 usually trade 75% of all trading days, and about 75% of those are profitable
1.6 yes, many times, have 6+ winners right now
1.7 maybe, likely, but less than a handful or two times in my career
1.8 anywhere from 2:1 Reward to Risk to 3.5:1, too many trades to calculate

but I think a far better stat is sharpe ratio

1.9 sure, once had 21:1
0.2 return on capital in relation to risk
1.1 not a scalper, but can trade on any time frame - not limited
1.2 answered above
1.3 don't have one...the market is a living breathing entity, I trade whats available and do not limit myself to targets per day...i find this to be fooling and a limiting paradigm of thinking
1.4 yes

Comment by Peter jcp on January 31, 2012 at 1:11pm

Hi Dimitar - nice story - I think i would be very happy with 30% ROI with a $2million dollar account. Then on a $20k dollar account I would need 30% a month - so i would struggle continually to always do over 30% every month throught a year?

So really the moral is - What will make you happy? - and the answer is .............? - and probably everyone's answer will be different - so true Dimitar

Comment by Dimitar Kinov on January 31, 2012 at 1:52pm

Hi, Peter.

In my opinion, what is really valuable - it's time. I therefore chose the profession of trader. I am completely independent of when I trade and when I relax. Such an aggressive approach breaks my peace of mind and probably in a state of stress begin to make more mistakes. What is the ultimate goal of your approach. Run out of all the forces until the fall of a broken heart? I'm not at work. I work for myself and it's definitely not my style. But I like the topic you raised. I can only note the fact that all super athletes who associates with world records at the Olympics in the 30 - 40 years of escaping from the "big sports" people with disabilities. Once again - this is my opinion and my personal choice.

Comment by Peter jcp on January 31, 2012 at 1:58pm

Hi Chris - some very good points which I would hope to answer in full later on today - Thank you for your input and I will say right away on one point - my highest ever RR was 17 - so if you have done a 21 - excellent true master class - shows your experience and training as really paid off - regards Peter

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