jim123

I'm not Steven Primo! I'm wondering if anyone has his "PETD" indicator. I posted those links to give examples.

Thanks Steven Primo for your promote your website.

 

;)

Check it out:

http://www.protraderstrategies.com/primo-early-trend-detector-pet-d/

I should clarify that I did not write the email or questions that I posted along with Gordon's reply - they came from somebody else ("James") enquiring about the Hedge Hog system; I merely stumbled across the entire post in the RSS feed from the Hedge Hog blog.

Thats a very valid scenario. I think , unless there is a good explanation to support that scenario... the -4x scenario will kill this system. Price whipsaws quite a bit and hence it is very possible that this -4x situation will happen. Unless his price progression lines give one very profitable targets that would cause the 0x : 4x RR scenario, i think the -4x is something he really overlooked.

 

James, if you could please email him this question and let us know what he replies, we would all appreciate it. Thanks.

Thank you all for the information provided thus far.

Here is the latest post copied directly from the Forex 'Hedge Hog' Blog (interestingly, it doesn't actually appear on the blog - I only happened to find it via the RSS feed). I hope it proves helpful anyway.

--------------------------------------

Answering a Prospective Student

--------------------------------------

{see my reply below -- Gordon]

Hello Gordon,

My name is James and I have been looking at your Hedge Hog strategy sales page over the last 2 days and it has certainly sparked my interest. But I do have a question for you regarding the "hedge" aspect of your system. I can not for the life of me see any benefit to opening a simultaneous buy and sell in the same instrument at the same time. Both open trades will cancel each other out and leave you with a slight over all loss due to spread. Mathematically I can not see any other outcome other than a net loss you are long and short at the same time.

I can see the benefit if you merely open one buy and one sell at point "A", and price then rises to point "B" above point "A" and then drops to point "C" below point "A", and thus giving you a profit for both orders. If you had a statistical edge that price is most likely to hit both "B" and "C" at some point after point "A" (but you don't know in which order), then having an open buy and sell order at the same time makes sense. However you hinted on your site that when one order is stopped out for a loss, you immediately open a new order in the opposite direction in an attempt to rescue the loss. And thus it sounds like you will constantly have simultaneous buy and sell orders in the market all the time. If this is the case, surely the net result will always be zero, minus the cost of the spread.

If you have an edge in terms of hitting a profit target more than 50% of the time, wouldn't it be more profitable to take only one trade at a time? The "hedge" as you describe it will clearly limit your downside losses to only the spread each time, but it also completely erases any profit.

I am sure I am misunderstanding something here and have likely interpreted your explanation on your site incorrectly, and would be very grateful if you could find the time to clarify and put me on the right track before I make a decision as to whether your webinar is going to be worth it for me. I am an experienced trader though sadly not a profitable one due to my emotions always pushing me to cut my wins early, lol. Your style of trading appeals to me a great deal but at the moment I can not understand the value of the hedge as I understad your meaning.

Thank you very much for any time you can spare to answering my questions.

Kind regards

James

___

Hello, James

I genuinely appreciate your inquiry. I an her the wheels turning and smell the smoke from here; -)

I'm going to give you a free example of the power of bidirectional trading, just one of the many variations I teach. This will be a bit long, so forgive me.

First, let's start with a 3x grid that looks like this:

------------------------------- B3

------------------------------- B2

------------------------------- B1

================= M = Market price

------------------------------- S1

------------------------------- S2

------------------------------- S3

Let's stipulate that it doesn't matter in the least what the spacing is in pips between each grid (20 pips, 50 pips, whatever). We'll just call the space 'x'.

Let's start with the Buy side.

I place a Buy order at M with a take profit (TP) at B1 and a stop loss (SL ) at S3. My TP = x and my SL = -3x, therefore my risk:reward ratio is 3:1.

Now, I do the same thing on the Sell side. I sell at M with a TP at S1 and and SL at B3.

The pattern will end in one of two ways only. If price moves to the outside of the pattern (say, to the top) the Buy gets +1x and the Sell loses -1X, for a net loss of (-2x).

If price touches both TPs (B1 and S1) before touching either boundary (B3 or S3), I end up with +1x +1x = +2x.

Therefore, I win +2x when a run wins and I lose -2x when a run loses, so my risk:reward collapses to 1:1.

Now, my expectation of profit will purely be a function of the raw % Win:% Loss ratio. I can win as few as 51% of all runs and still make money. In the real world, taking the spread into consideration, I need 60% winning trades.

My own experience is that well over 75% wins occur due to the sheer oscillatory nature of price action.

Now, let's have some more fun.

Let's add a conditional order: an entry buy stop (EBS) at B2 with a TP at B3 and a SL at S1. Likewise, let's add an entry sell stop (ESS) at S2 with a TP at S3 and a SL at B1.

However, let's DOUBLE the positions size on both the EBS and ESS orders.

Here's the grid repeated.

------------------------------- B3

------------------------------- B2 ... EBS

------------------------------- B1

================= M = Market price

------------------------------- S1

------------------------------- S2 ... ESS

------------------------------- S3

The rule now is that a runs ends when price has touched either of the outside boundaries.

Let's say price touches both B1 and S1 (in either order) and we get +2x. With the market Buy and Sell orders closed with a profit, both of their stop losses have now been removed from the platform.

However, the EBS and ESS orders are still sitting there, waiting in the wings. Sooner or later one of them will be touched and triggered (I call these the Extension trade or 'EXT' for short).

If the EXT trades wins we get +2x because it was a DOUBLE order.

Now our profit for the entire run is +1x +1x +2x = +4x.

Let's say price does NOT touch both B1 and S1 but instead heads right to either boundary. Let's use the Buy side as our example.

On the way north we get a win (+1x) at B1, the EBS triggered in long at B2 with a win at B3 (for +2x) and a loss of the market Sell order at B3 (-3x).

Add them up and we get +1x +2x -3x = ZERO!

So now our risk:reward is 0x / +4x ... I don't even know what to call that.

Basically, there isn't any more risk

How do like them apples!? (Heh)

So when we win we get +4x and when we lose we get zero.

Hey, I'll take zero all day long.

Now, in the real world there will always be a spread to pay. And the smaller the grid size the greater the spread will represent as a percentage of 'x' (the grid size). With a larger grid, say 40 pips, it becomes almost negligible.

And keep in mind that I can put on one of these setups in about 3 minutes, less if I've had too much coffee.

So in summation, you can see there are many advantages to true bidirectional trading which I assert is NOT the same as hedging as that strategy is usually thought to be.

In a recent student video update I dubbed my latest enhancement the Quantum Hog since there are so many similarities between bidirectional trading and quantum physics, not the least of which is freedom from mental entanglement! (sorry)

Well, I hope this helped give you some insight into the Hedge Hog. He may be ugly, but he's not as dumb as he looks.

Cheers!

Gordon Philips

Anybody have this to share?

http://metafx-int.com/products/?act=prod_info&prod_id=19

Thank you!

Hello good folks,

Is anybody able to share a full and working version of the XTick platform? You can only try the demo for 8 days...

http://www.xtick.com/

Thanks!

Does anyone have this to share?

http://howidaytrade.com/

Thanks