DRFOREX COMMUNITY FORUM

rossgo · MP Class of Jan 08 (Hybrid)

BWILC

zunismyst · Independent Trader

Yes, I only can encourage you in your efforts to do this. I have read the ebook nearly two years ago. And now I have almost ended up there where, let's say, we find our Nirvana. Hardly any trading system is able to beat the BWILC methodology.

DrForex · Big Makulu

Zunimyst

Can you explain more about why you say "Hardly any trading system is able to beat the BWILC methodology"?

It would be good to hear that from a World Champion trader who has seen both ends of a trading account ...

Trading nirvana ... sounds heavenly ...

zunismyst · Independent Trader

You make me laugh loudly here!!!
"...who has seen both ends of a trading account ..."
Yes you are completely right. I like ironic comments -

Just yesterday I discovered a quite promising trading system on http://www.forexfactory.com called: 4 Hour Strategy (MACD).

I have been open minded for my live though I must admit I really have found what I was looking for definitely.

This guy, called Phillip Nel (may be from S.A.) introduced his system as quite "simple and easy to understand" in Jan. 2007. Since his thread has almost 1000 posts, which seems to be as a tremendous feedback in reference to the time. Well, you guys check it out by yourself. You can download his various manuals called "heart of this system". He assures to make 300+ pips per month.
But after I tried to figure and analyze his attached actual chart from yesterday, man, I don't know

He has done some successful backtesting and mentioned this after somebody's question "When doing backtesting to see if the system works you dont take news into account. So that means that for the system to work it means that it must supports news. Therefore I only stay away from interest rates and NFP news. I will use the news as to how far it will take the price depending on the severity of the news."

Okay folks. This example tells enough until here when I find BWILC like. Though I faced some serious experiences.

But even if somebody feels like floating in heaven and everything has been working just fine and dandy. And the balance is improving from day to day. And hardly encountering any losses to be considered during this time. Man, there is a lot of danger and the bigger equity and balance are caution is absolutely necessary.

I will continue my thread
My Trading Diary to show what is possible to trade with BWILC
some time during the next month after I have updated my Excel sheets and analyzed my mistakes.

-- Edited by zunismyst at 17:04, 2008-05-08

-- Edited by zunismyst at 17:05, 2008-05-08

-- Edited by zunismyst at 17:07, 2008-05-08

DrForex · Big Makulu

I still don't know what about the BWILC methodology makes it so "hard to beat"?

Oh, and while you think about that. Whave you researched a lot of systems?

DdT

zunismyst · Independent Trader

DrForex wrote:

I still don't know what about the BWILC methodology makes it so "hard to beat"?

Oh, and while you think about that.
Whave you researched a lot of systems?

DdT

To your first question >BWILC hard to beat
it is just my personal view and and arises out of my intuition. I can compare it like a woman sitting near me on a plane. Either I feel impressed and somehow find myself introduced in an excited talk talk or I just take a book and better read

Latter happened when I read your (Dirk's) ebook.

And, no! - to your second question if I researched a lot of systems
I discovered 2 or three. Just one to mention here that seemed to be quite interesting to me. It was called Catfx50. the thread is still online as you can see http://www.forex-tsd.com/catfx50/523-catfx50.html, but it is dragging now.
I struggled through the whole thread for 6 months but never took action two years ago. The reason for that wasn't the system nor it's complication - it wasn't really complicated - no, I was just curious what the active "traders" said and if I could learn out of it. What prevented me from testing it? I eventually figured that this system has no exit strategy.

Until I found BWILC I never discovered any interesting fundamentally based strategy that ensures the consistency in itself.

-- Edited by zunismyst at 18:27, 2008-05-08

-- Edited by zunismyst at 18:28, 2008-05-08

-- Edited by zunismyst at 18:28, 2008-05-08

DeanR · Class of Life (2007)

Dirk,

I'm actually supprised that you wrote this.

{"It would be good to hear that from a World Champion trader who has seen both ends of a trading account" }

Maybe I'm missing something or maybe I still don't get it, but at the risk of sounding stupid (and to not put Zunismyst on the spot) I think the only way Zunismyst could have won those trading contests was by using excessive leverage. How else can anyone achieve +100% in 3 months? (I'm referring to the contest I know about with FX street. The 2nd or 3rd place winner was Colin from forexspirit.com, also a BWILC member. He wrote recently on his Blog that he blew up his account by overleveraging. I'd quote you but if you go to his website it's been hacked and your antivirus will go skitzo.

How could you possibly not take the risk of blowing out your account with that type of leverage? Words come to mind like "Black Swan Event" Live to trade another day" Oh yeah, and that randomness thing. You see, that's what I thought BWILC was all about, the built in protection of low leverage. (Kinda like an insurance policy) Zunismtst could be the greatest short term trader there is but he can't predict the unpredictable. (Maybe he can and that's the Nirvana?)

So, there you go, that stupid DeanR fool put his head on the chopping block again ready to be ridiculed, scorned, shunned, banned from the forum and laughed at behind his back, but he's got his pencil and paper in hand ready to take notes on the part (the Nirvarna part that is) he missed out on.

I can't help but equate that luck played a major role in his winning and luck has a funny way of catching up to you.

zunismyst · Independent Trader

Dean,
let me respond to your post quickly. Dirk received some informations by me, after he asked me recently how my trading is going. I will post all my trading and detailed statements together with my comments next month starting from October 2007.

When I started trading after the BWILC strategy I thought about and put following into question >trade just one currency.

What happens, if I have gotten into a long trade, i.e. let's say on April 21, at 1.5920 (EUR/USD) and I missed to close this one at 1.6016 with a big profit? At 1.5280 after more than 700 pips loss on May 8, I wondered what to do. Get out or stay until 1.52. And at 1.52 I would say, let it run towards 1.51. This can happen, but not just with one single trade like this. Okay, hopefully every trader experienced and gained strong discipline during his traders' live or he will blow his account.
Take both fundamentals into account, the European and the US.

As I have been keeping strictly to the rule >my leverage doesn't exceed my balance 2,25 x your
assumption about over leveraging is wrong. Though I made about 136%. Between December and April 08 my performance was even much more.

This was only possible that I entered counter trades in other than EUR/USD. My thought was, if I trade like this and go long (only when it makes sense technically) AUD/JPY I don't get
problems with my trade and the open loss of more than 700 pips. we know that the Euro is going to get strong soon again. Secondly, during this time without any profit taking i am able to my my gains somewhere else.

Now you can imagine that this kind of trading has it's danger because there is a lot of experience (not only correlation) necessary. And I am working on it and put every single experience into my business plan to have my rules always changed or improved.

I mention one of my mantras in English: Only if you risk to go too far you eventually figure out how far you are able to go

DeanR · Class of Life (2007)

Zunismyst,

Thank you for responding to my post.

Let me clarify a few things. You say, "

What happens, if I have gotten into a long trade, i.e. let's say on April 21, at 1.5920 (EUR/USD) and I missed to close this one at 1.6016 with a big profit? At 1.5280 after more than 700 pips loss on May 8, I wondered what to do. Get out or stay until 1.52. And at 1.52 I would say, let it run towards 1.51. This can happen, but not just with one single trade like this. Okay, hopefully every trader experienced and gained strong discipline during his traders' live or he will blow his account

Does this mean

a) You've diciplined yourself to take the loss (otherwise you would keep holding on to 1.51, 1.50, 1.49 and so on) We're talking a 700 pip loss?

Or does this mean

b) ("Take both fundamentals into account, the European and the US") The US is going to hell in a handbasket. Trichet is stubbornly keeping the peg and worried about inflation. The German economy couldn't be doing better. So ride out the storm and stay with the trade
You say here ( "we know that the Euro is going to get strong soon again.")

What does this mean?

My leverage doesn't exceed my balance 2,25

You say here,

This was only possible that I entered counter trades in other than EUR/USD. My thought was, if I trade like this and go long (only when it makes sense technically) AUD/JPY I don't get
problems with my trade and the open loss of more than 700 pips. we know that the Euro is going to get strong soon again. Secondly, during this time without any profit taking i am able to my my gains somewhere else.

It's my understanding what you're telling me is that,

a) You went long EUR/USD at 1.5920 So this means your trade is underwater now around 700 pips. So you entered counter trades with Aud/Jpy (only when it made sense technically)

You say here,

"Secondly, during this time without any profit taking i am able to my my gains somewhere else."

Does this mean you have a third trade going? Meaning while you're compensating for your losses in the Euro by counter trading the Aud/Jpy, you have a third trade going?

Again, I thank you for not being upset with me for being a doubting Tom. I associated high returns with high leverage. Even if you have many low leveraged trades on , that still constitutes high leverage. The only way you would be able to bring in such a high return I would think is if you were averaging +100 pip profit trades most of the time. It looks like I still have a lot to learn

DeanR

DrForex · Big Makulu

DeanR wrote:

Dirk,

I'm actually supprised that you wrote this.

{"It would be good to hear that from a World Champion trader who has seen both ends of a trading account" }

Maybe I'm missing something or maybe I still don't get it, but at the risk of sounding stupid (and to not put Zunismyst on the spot) I think the only way Zunismyst could have won those trading contests was by using excessive leverage. How else can anyone achieve +100% in 3 months? (I'm referring to the contest I know about with FX street. The 2nd or 3rd place winner was Colin from forexspirit.com, also a BWILC member. He wrote recently on his Blog that he blew up his account by overleveraging. I

Well, I could have ask Torsten in private and then I would not have added the "world champion" part. Might have said something about the two ends of a trading account part.

But seeing that it is the "open forum" i.e. anyone that accidentally or otherwise lands on this page will be able to read here, I have made the remark. Because it doesn't matter how you look at it he did produce that returns in that competition and he is still around.

But there is another reason why I asked the question and that is because from what I know Torsten has a very loose application of the 4x1, amongst others he is highly leveraged from time to time, trade currencies across the board and is preoccupied with a technical instrument - called the devil's fork. Seems like the devil's fork got him to trading heaven if you ask me confused

zunismyst · Independent Trader

Just to make something clear here about my core concept.

1) I am orientated in longer term trading in nature - identical to BWILC
2) Timing becomes a less important component of my decision entering a trade - identical to BWILC

But I diversify my portfolio because:

a) it should spread my risk (asset allocation), i.e. price shocks, draw downs of trading One currencyas much as possible.

b) it opens awareness - looking at a broader range of currency pairs, but just one pair.

c) trying to evaluate the best combination of pairs (majors + carry trades)

My tools:
1)my median grid (to be seen in 4H charts), Andrews pitchfork (daily, better weekly). Both, median grid and pitchfork do complement one another perfectly.
2) Fibonacci retracements for entrances and exits.
3) Pivots (H + L + C) / 3

Just a brief note about Dirk mentioned ....."and is preoccupied with a technical instrument - called the devil's fork. Seems like the devil's fork got him to trading heaven if you ask me"

Devil's fork? By this he supposed Andrews pitchfork. That's, what I really don't understand why he name it Devil's fork.
But, yes, i got into trouble not because of the pitchforks but because I didn't care it after price has crossed the pitchfork parallels of the pitchforks. This happened several times I have to be blamed for ( see examples attached and red sell arrows).

-- Edited by zunismyst at 13:32, 2008-05-13