Institutional Bank Style Trading: The method in which I trade is called, Balance Point Trading. It tracks the actual tru-value of a given currency, then trades the imbalances of that particular currency pair until the balance point (tru-value) has been achieved. Balance Point Trading is how the banking institutions and large retail investors make their money. This is how we as well are going to make ours. Welcome to Titan's PipWorld...
Rules To Follow (if one decides to trade along side with me):
1). Change Unit Size Accordingly:
2,500 usd accts to 1,000 units (0.01): micro-accts
25,000 usd accts to 10,000 units (0.10): mini-accts
250,000 usd accts to 100,000 units (1.00): standard accts
2). Understand that Balance Point Trading is a long term trading method which can take days, weeks even months before either a take-profit point has arrived or our stop-loss have been triggered.
3). Stop-loss can vary and is consider by most (including myself) to be quite large: 300 to 3000 pips max. Note: Do not let the stop-loss size scare you, yet it will take time to adjust to using one of such size if your not used to it. Why is the stop-loss size so large? As I mention this method is called Balance Point Trading and it trades the imbalances in a given currency pair. An imbalance can be small (thousands of dollars) or very large (billions of dollars). I have no way to measure the size of an imbalance only the tru-value of a given currency, hence the large stop-loss and length of time an imbalance can take to work itself out of the market place.
4). COC, stands for Carry-Over-Credit. Do not ignore COC, its our safety net. When ever we add an additional position to a trade already open the full amount of that trade, once closed successufully is credited to COC. It is never drawn upon except when we take a loss so to cover our loss. Think of it as PTO (pay-time off) or as an insurance plan to cover losses. *Max stop-loss size is 3000 pips, so once COC reaches 9000 pips then anything above that will be swept into our regular acct.
Additional Info:
This particular method has a better than 80% win rate and have been backtested as far back as 1997. At this time both demo-testing and real-acct testing is being conducted. The broker of choice at this time is FXDD and yes, I'm fully aware of the regulatory rules coming into play and that FXDD does not fall under these rules here in the states.
As time progress I will add to this post so if you want to see updates it will be posted here and of course I will always let you know when I have added something. I need a central post to refer everyone to so not to repeat myself in different post.
Merry Christmas, Happy Holidays and may next year be the best trading year ever, Titan
