Wednesday, November 7, 2012

Tuesday, November 6, 2012

6 Nov

Refrigeration is necessary for hard boiled eggs if the eggs are not to be consumed within a few hours.
It is preferable not to peel your eggs until you are ready to eat or use in your recipe. Hard-cooked eggs in the shell can be refrigerated up to one (1) week.
Peeled hard-boiled eggs can be stored in the refrigerator in a bowl of cold water to cover for about 1 week (change the water daily) - or in a sealed container without water (cover the eggs with damp paper towels) for the same length of time.
SAFETY NOTE: It is not safe to leave hard-boiled eggs (including those in their shells) out at room temperature for long. If they have been taken to a picnic, or served on a buffet, keep them cool (in a cooler) while they are being served, and discard the leftovers.

Monday, November 5, 2012

Aim:

How to manage my time effectively ?
Sleep by 10.45pm.
Focus - no distraction

control GERD
Memorise One Bible verse per day.
Diet

Exercise

Pumping

Dumdbell curl

Reverse Dips

Free Squat

Leg Raises

patient is the most overlook

christian book on calm and expect less

Qigong breathing exercise all the times

No Gossip, No meddle on other people business

做一个心平气和的人 - Live in Peace, not excitement

More choices
Positive self talk

Faith:

Emotion must use heart to feel not by speech

Health:

涌泉穴

Finance:

Howto maintain a average winning everyday
How to manage my time while betting rouleete and not use all my time on roulette
how to manaintain my winning amoiunt everyday, seems like I am always winning then losing then win again, how to keep the winning amount ?

Roulette - set a target of $120 per day.

How to utilize the I miss the wrong bet strategy ?

If I bet two rows or more and still lose, then I should stop betting for a while, because that show that I am really unlucky. Also to control my emotion.

Think of the consequences ! (before betting, calculate how much I can lose)

In life there is always a second chance, don't act rashly !

If bet big, bet on bacarret.instead of betting half row, bet on bacarrat which is 50% chances.

Have faith in betting after one row did not appear twice, the statistics shown that the winning chance in the long run is guranteed.

There is always a tussel in the beginning, be Patient and wait for chance to accumulate the winning amount to add more bet, bet more when winning, never bet more when losing.

How to profits from Forex traders that scapling, explore the loophole of scaplers ?

Entertainment:

Mental:

Pray to God and let God lead me, don't force myself.

Food:

Cheap and easy to prepare food

Soy Drink

Egg White

Banana

Bar

Tuna

Almond

Gluten Free diet

Spinach

Kale

Cucumber

Broccoli

Avocado

Celery

Apples

bananas

melons

peaches

whole-wheat bread,

grain cereals.

Brown or white rice

rice cakes

extra-lean ground beef

Chicken should be skinless

skim, low-fat or fat-free milk instead of whole milk,

Drink plenty of water every day to keep acid reflux in check.

Calm stomach acid with a cup of herbal tea.

Black tea has a high acid content and should be avoided.

玫瑰花茶

low-fat or fat-free cottage cheese

Lentils

beans

Attachments:
【靜觀】

真正的養生之道，在於能求得心靈上的安穩自在，無憂無愁。

『百歲佛學大師的精神養生法』

松原泰道是日本的佛學大師，生於1907年。

65歲那年，他發表《般若心經入門》，因說法精妙。一舉成名。

從此四方講學，還年年推出新作品，迄今著述超過130部，成為日本佛學界的一個奇跡。

松原泰道致力於推廣一種佛教生活哲學，把一般人難以理解的佛學經典與智慧寫成易於理解的著作，也把佛教的理念活學活用，成為一套經世致用、充滿智慧的人生觀。

我的人生是從50歲開始的

松原泰道說：我的人生是從50歲開始的。以我的經驗來說，五六十歲是人生的轉折點，
由此人生可分為兩段：50歲前，是打基礎階段，在這個階段裡，
我們往往為立足社會、養家糊口而疲於奔命，基本上是為別人活著；
50歲以後，經濟基礎已經奠定，職責也已完成，這才到了實現自我、創造自我的最有價值的階段。

有人問他：你的長壽秘訣是什麼?他爽朗地笑起來：“哪有秘訣？我從來不知道自己能活這麼久。”

他的長壽並沒有遺傳因素，母親在他3歲時病逝，父親在他30歲那年也因腦溢血辭世。
他自幼到成年都是體弱多病，身體差到連參軍入伍的標准都達不到。
大學時，他還得了一場病，差點命赴黃泉。

松原泰道的長壽顯得不可思議。也許，只能從精神層面尋找長壽依據。
果然，他說，他一向看重精神養生法。

親身經歷的三個故事

大學那年，他得了腎病，奄奄一息，卻遇到了一位好醫生。
醫生誠懇地對他說："孩子，你太憂鬱了，你的病很大程度上是心理因素導致的。
我們能不能來個分工合作：外面的病由我來治，心裡的病由你來治。”
這番溫暖人心的話鼓舞了他，他開始樹立信心，積極樂觀地配合治療，腎病很快就好了。

這次康復給了他深刻的啟示：心態健康最重要!

他去外地講學，午間到一家餐廳吃了一個便當〈注：盒飯〉，便當裡有一個裝筷子、牙簽的紙袋，
上面印了一首歌詞：“見也難，別也難；有哭泣，有歡笑；時光像秋風匆匆吹過，一生只見了這一回。”
當時，有三個藝伎表演這.短歌，優美而感傷。第二年，他再去這個地方，已經見不到這三個人了，
就像歌裡說的那樣。

他意識到：一切稍縱即逝，對人對物都要用心珍惜。

1954年，北海道有一所寺廟請他去講經。
臨出發前，天氣預報說台風即將登陸，對方來電話通知他不要上船。於是他退了票。
沒想到，原定的那一班船被台風襲擊，整個船沉沒，死了1200人。
聽說船上有一個美國牧師，自己有救生圈，看到一個女人懷抱孩子卻沒有救生圈時，他把自己的救生圈給了女人，女人和孩子獲救了，他卻被淹死了。

這場悲劇震撼靈魂。從那時起，松原泰道覺得，他的生命是別人給的，他要學著多捨少取，回饋他人，
要“用懺悔和布施之心創造萬物共生的世界”。

他的精神養生法就這樣形成了。

三不原則

精神養生法還有個三不原則：不勉強，不浪費，不懶惰。

1.不勉強，指的是不好高騖遠，做脫離常規的事；

2.不浪費，指的是珍惜時間、珍惜身邊的事物、珍惜他人的善意；

3.不懶惰，指的是自己的事不能讓別人去做，不管年齡多大，都要鼓足熱情繼續學習。
中國有個名叫百丈的和尚提出一日不作，一日不食，他認為說得很有道理。

終生學習

有一位曾探訪松原泰道的人說：原以為，一位百歲老人會枯萎得如同核桃殼一般，
沒想到松原泰道的面容如此潤澤、明朗。他的笑容如冬日陽光般溫暖，
話語間有一種與萬物共生其榮的欣喜和感激。

近日，松原泰道在寫一本書《學習死亡》。他說：
死亡像不停行走的鐘，每一秒都存在，也許這是一本寫不完的書。
但寫不完有什麼關係呢？人生總是半途終結的。
我們每天只需盡力做好能做的事，力所不及的事，就交給蒼天吧。

他的座右銘是：終生學習，至死方休!

Sunday, November 4, 2012

4 Nov

Aim:

Sleep by 10.45pm.

Focus - no distraction

control GERD

Memorise One Bible verse per day.

Diet

Exercise
Pumping
Dumdbell curl
Reverse Dips
Free Squat
Leg Raises

Qigong breathing exercise all the times

No Gossip, No meddle on other people business

做一个心平气和的人 - Live in Peace, not excitement

More choices

Positive self talk

Faith:

Health:

涌泉穴

　在此推荐防老十法，给普天下慈爱的长辈：

　　一、【发宜多梳】每日梳头3至5遍，每遍30次左右。多梳发能疏通头部经络，按摩头发根部，可起到清头明目的功效。

　　二、【面宜多擦】用双手揉擦面部，每天10次。擦面部可防止面部皮肤老化及减少皱纹。

　　三、【目宜常运】让眼球经常上下左右转动，每日转动眼球10次。有明目清神作用，可增加眼球局部血液循环，防止视力衰退。

　　四、【耳宜常弹】两掌心掩耳，静心，用手指弹击后脑10次，而后突然张口。弹耳可防止耳聋，增强记忆。

　　五、【舌宜抵颚】舌抵上颚不要用力，宜轻抵自然。此法能使任督二脉相通，达到阴阳平衡的目的。

　　六、【齿宜数叩】叩齿可以固齿清热，并能治疗慢性牙周病，每次轻叩30次左右。

　　七、【腹宜常摩】腹为肠胃内脏所在，常做腹部按摩有利于消化，可治消化不良肠胃功能障碍。

　　八、【谷道宜常撮】即肛门有意识地向上撮提，可防治痔疮、慢性前列腺炎。

　　九、【肢节宜常摇】即四肢宜常活动，通过四肢促进内脏及全身的气血运行，以增强体质。

　　十、【足心宜常擦】以手心擦足心，可以交通心、肾，预防失眠多梦。

　　以上十法时时练习，持之以恒，可强身健体，防止衰老，也可防范老年人的一些常见疾病发生，愿天下的父母亲皆能长命百寿！

1．强壮心脏法。经常按压手心劳宫穴，有强壮心脏的作用。劳宫在手掌横纹中，第二、三掌骨之间(即手心)。其方法是用两手拇指互相按压，亦可将两手顶于桌角上按劳宫穴，时间自由掌握，长期坚持可使心火下

降。

  2．健脾和胃法。足三里为足阳明胃经之合穴，是全身强壮要穴，在外膝眼直下三寸，距胫骨前缘外侧一横指处。经常按摩此穴有健脾和胃之效，补养气血之功。

  3．促进睡眠法。中医认为失眠多是心肾不交，水火不济所致。涌泉为足阴肾经之原穴，位于足掌前1／3与后2／3交界处出现凹陷处(即足心)。每晚临睡前半小时，先擦热双手掌，右掌按摩左涌泉，左掌按摩右涌泉各36次，可促进睡眠，使心火下降，肾水上升，则水火既济，心肾相交。

  4．牙齿保健法。每天早晚各叩36次，可治疗各种牙病，保护牙齿，使其坚固，不易脱落。

  5．预防感冒法。感冒是一种呼吸道传染病，把住呼吸道这个口，病毒就会避而远之。每天轻轻地嗅杯中酒味，可保持鼻嗅的灵敏。长期坚持对预防感冒有特效。

  6．防治头痛法。每天早晚用双手拇指和食指捏耳垂100次，可预防治疗各种原因引起的头痛。

    7．防治眩晕法。长时间伏案工作或姿势不变从事一项工作后，起的动作快些，往往感到头晕目眩。这时可迅速用一只手的大拇指和食指，分别用力按摩位于小拇指和无名指根约2公分处的"中堵"穴位，时间约7至8秒钟，然后换手。如此按摩1至2次，可消除头晕目眩症状。

  8．梳头防白发。每天早晚用双手指从额头上前发际梳至后发际，由轻到重，再由重到轻，梳36次，可促进头部血液循环，使经络流通、气血调和，不但能防治白发，还可使头目清醒。

  9．防治便秘法。清晨空腹口服一碗温热淡盐水后按摩腹部，或转动腰胯，使水在胃内震荡，可消除胃内残渣物质，并能润肠通便。

  10．壮腰健肾法。"肾之盛则寿延，肾之衰则寿夭"，这是长寿的要诀。扭摆腰部可壮腰健肾。方法：站立，两手插腰，上身向前稍倾，慢慢左右扭摆腰逐渐部，加快，至腰部感到发热为宜，早晚各做一次。

豆浆是许多人喜欢的食物，不少人都将豆浆作为早餐，但是饮用豆浆一定要有所注意，否则很容易诱发疾病，那么，饮用豆浆要注意什么呢？

1.并非人人皆宜。中医认为：豆浆性平偏寒，平素胃寒，饮后有发闷、反胃、嗳气、吞酸的人，脾虚易腹泻、腹胀的人以及夜间尿频、遗精肾亏的人，均不宜饮用豆浆。

2.不能与药物同饮。有些药物会破坏豆浆里的营养成分。如四环素、红霉素等抗生素药物。

3.不能冲入鸡蛋。鸡蛋中的鸡蛋清会与豆浆里的胰蛋白酶结合，产生不易被人体吸收的物质。

4.忌过量饮豆浆。一次不宜饮过多，否则极易引起过食性蛋白质消化不良症，出现腹胀、腹泻等不适症。

5.不要空腹饮。空腹饮豆浆，豆浆里的蛋白质大都会在人体内转化为热量而被消耗掉；不能充分起到补益作用。饮豆浆同时吃些面包、糕点、馒头等淀粉类食品，可使豆浆蛋白质等在淀粉的作用下，与胃液较充分地发生酶解，使营养物质被充分吸收。

6.不要饮用未煮熟的豆浆。生豆浆里含有皂素、胰蛋白酶抑制物等有害物质，未煮熟就饮用，会发生恶心、呕吐、腹泻等中毒症状。

7.忌用保温瓶贮存豆浆。在温度适宜的条件下，以豆浆作为养料，瓶内细菌会大量繁殖，经过3~4小时就能使豆浆酸败变质。

Finance:
Roulette - set a target of $120 per day.

If I bet two rows or more and still lose, then I should stop betting for a while, because that show that I am really unlucky. Also to control my emotion.

Think of the consequences ! (before betting, calculate how much I can lose)

In life there is always a second chance, don't act rashly !

If bet big, bet on bacarret.instead of betting half row, bet on bacarrat which is 50% chances.

Have faith in betting after one row did not appear twice, the statistics shown that the winning chance in the long run is guranteed.

There is always a tussel in the beginning, be Patient and wait for chance to accumulate the winning amount to add more bet, bet more when winning, never bet more when losing.

How to profits from Forex traders that scapling, explore the loophole of scaplers ?

Entertainment:

Mental:

Pray to God and let God lead me, don't force myself.

Food:

Today, I cook myself with hong kong ee mee and chicken, lot of green pea carrot and drink lot of water and packed soy bean and really feel great.

Cheap and easy to prepare food

Soy Drink

Egg White

Banana

Bar

Tuna

Almond

Gluten Free diet

Spinach

Kale

Cucumber

Broccoli

Avocado

Celery

Apples

bananas

melons

peaches

whole-wheat bread,

grain cereals.

Brown or white rice

rice cakes

extra-lean ground beef

Chicken should be skinless

skim, low-fat or fat-free milk instead of whole milk,

Drink plenty of water every day to keep acid reflux in check.

Calm stomach acid with a cup of herbal tea.

Black tea has a high acid content and should be avoided.

玫瑰花茶

low-fat or fat-free cottage cheese
Lentils
beans

Attachments:

Warren Buffet - Not Your Typical Forex Investor, But a Model For Those Who Do Trade Currency

I heard Warren Buffet on the radio this morning talking about the effect the global recession is having on his business.

He's not involved with any forex program trading, as far as I know -- no trading currency for the world's best-known and probably most successful investor -- but has, rather, made money in shares and especially trading penny shares.

But his answer to the reporter was very interesting for forex traders. He said he was going to work to buy and sell shares. Not to look at the views of economists.

He explained himself by expanding on this, and said he did not know if the world's economy was on the way up or down. And that did not concern him, he added. Because he went to his office today to consider the value of companies. How well they were performing, what their prospects were, if their share price reflected that, and so on. In other words, he was going to work to think about real businesses and how they were doing. Not the predictions of economists.

This is from the man who, in March this year, famously said the world's economy had "fallen off a cliff". And yet here he is studying companies and analyzing how they were running. He seems to be unconcerned about the impact of a recession on his business, even though the value of some of his investments (coca cola, for instance) have dropped significantly in recent times.

Well, we are not all Warren Buffets. But we can all have a hand in the vibrant forex market, and get into trading currency, with a positive attitude, just like Buffet. The forex market is not going to go away. It is too value to too many people -- both big company executives and small, ordinary people -- to stop functioning. And as long as it is working a forex investor can be poised on the sidelines waiting for those opportunities made possible by the unique leverage available in the forex market.

Saturday, November 3, 2012

3 Nov

Aim:

Sleep by 10.45pm.

Focus - no distraction

control GERD

Memorise One Bible verse per day.

Diet

Exercise

Qigong

No Gossip, No meddle on other people business

做一个心平气和的人

Live in Peace, not excitement

Positive self talk

Faith:

Health:

Finance:
Think of the consequences ! (before betting)

In life there is always a second chance, don't act rashly !

If bet big, bet on bacarret.

instead of betting half row, bet on bacarrat which is 50% chances.

bet alternatively on half row with small amount when the luck is lousy.

my chance is always 65% regardless of previous outcome, so my chance is always high, don't be affected by win 2 one lose, just think that every bet is independent winning chance of 65%.

Bet the same amount all the time, when accumulated a winning of $100, bet $40 x 2, plus $10 on 0, 2,3.

before betting, count the balance amount after losing first, that will warn me not to bet too big. Bet big only when I accumulate a winning amount large enough, if the the big bet lose, stop altogether.

Entertainment:

Love is decided by Fate, if the girl don't belong to you, even you try everything to get her, at the end, you will lost her, like my wife, in Love, let God decided, don't force yourself.

Mental:

Positive thinking is important, regardless of how successful you are you are, you have to think positively and move forward, regardless how terrible situation you are in , you still have to stay positive and move forward.

Dependent on other is a sure way to lost control of your destiny.

Food:

Cheap and easy to prepare food

Soy Drink

Egg White

Banana

Bar

Tuna

Gluten Free diet

Spinach

Kale

Cucumber

Broccoli

Avocado

Celery

Apples

bananas

melons

peaches

whole-wheat bread,

grain cereals.

Brown or white rice

rice cakes

extra-lean ground beef

Chicken should be skinless

skim, low-fat or fat-free milk instead of whole milk,

Drink plenty of water every day to keep acid reflux in check.

Calm stomach acid with a cup of herbal tea.

Black tea has a high acid content and should be avoided.

玫瑰花茶

low-fat or fat-free cottage cheese
Lentils
beans

Attachments:

A Look At The Turtle Trading System
Cho Sing Kum12^th Mar 2004

This article was initially written for the March 2004 issue of Chartpoint magazine which unfortunately wound down operation recently and this article was not published. It is now re-edited and produced here.

Check out our Turtle Trading Software, TurtleFarm, that is programmed to the Turtle Rules.

It All Began In 1983
The year was 1983. I had just decided that I wanted to go full-time into technical analysis. I took a sabbatical from work in October to learn on my own, not having gone any where with technical analysis since early 1982.
The Singapore representative for Compu-Trac happened to be back in Indonesia so I was helping him out here. It was from this connection that I got to know people at Drexel Burnham Lambert’s Singapore office. They were a bunch of very nice guys and the office was having problem setting up the computer to download data from Commodity Systems, Inc. in the USA.

They were asking me why I did not go to Chicago. They were telling me I should go and handed me a newspaper cutting. You see, about that time, Richard Dennis and Bill Eckhardt had put out advertisement for trainee traders for the Turtles program. I gave it some thought but because I was not in a position to relocate to Chicago, it never crossed my mind to apply. Six months into my sabbatical I was offered a job at Drexel which I took up. Since then I was always curious about the Turtle trading method.
Not A Well Kept Secret
The Turtles were sworn to secrecy. While the Turtle method appeared to be a well kept secret, it was actually not. Channel breakout was growing in popularity in the 1980s. So was volatility adjusted risks. In the late Bruce Babcock Jr’s 1989 book, The Dow Jones-Irwin Guide to Trading Systems, bits and pieces of what could be the Turtle trading methods in one form or another were scattered in the pages. All these were well known market knowledge. But while I was hearing about the successes of the Turtles, I never knew that their method was already out in the market. I was still looking out for it.
The 1923 Book
I finally went to Chicago in 1986. I went not for any Turtle program but for company orientation that took me to New York, Chicago and Tokyo a year after I joined Merrill Lynch Capital Markets. It was something I did during this trip that had a big impact on my learning. I went to the bookshops around the Chicago Board of Trade and bought all the trading books I could carry. Once back home, I ordered more books from Traders Press Inc. by mail order.

Good and often lesser known trading books were hard to come by in Singapore bookshops in the 1980s. I could not remember whether I bought this book in Chicago or from Traders Press. Wherever it was, I was very fortunate to have bought the book, Reminiscences Of A Stock Operator, first published in 1923. It was actually a biography of Jesse Livermore, one of the most respected stock and commodity market speculators of all time.

I was so fascinated by this book that I included many quotes of wisdom from it in the daily market closing commentaries I was writing. I wrote the Nikkei, Hang Seng, Chicago Treasury Bonds and Eurodollar futures closing commentaries. These daily commentaries were sent out by telex to Merrill Lynch’s Asian customers.
Now you may wonder what has this book to do with the Turtle method. In my opinion it has a lot to do although I did not know initially.
Fast forward your clock seventeen years to April 2003.
The Turtles Revealed Their Secrets
That month I was pointed to the website www.originalturtles.org. It was a new website wherein the claimed Original Turtles Trading Rules were revealed by Curtis Faith, one of the Turtles in the first class in Dec 1983. Before this I already knew about the 20-day entry and 10-day exit rules which were based on Richard Donchian’s work. I also knew about True Range and Average True Range from J. Willes Wilder Jr’s 1978 book, New Concepts in Technical Trading Systems. And not forgetting Bruce Babcock’s use of Average True Range as stops. What I did not know was how these were put together to form the Turtle Trading Rules.
My Most Important Discovery
And now the most important of my discovery - the combination of these parts resulted in what I would call the actualization of all that Jesse Livermore wrote in his 1923 book into a complete trading system! This was what the Turtle method was to me - a 1983 actualization of a 1923 book. I mean I could relate them. I certainly did not know whether Richard Dennis intended this but I could feel the resemblance, or rather Livermore’s experience, filtering into the Turtle methodology.
So it was that twenty years later, I finally got to learn the Turtle method after all. But Livermore’s experience was already available for eighty years, so what was twenty years. It’s always better to be late then never. Naturally, I gave the Turtle Trading Rules a thorough check out.
The Turtle Trading System
“The Turtle Trading System was a Complete Trading System. Its rules covered every aspect of trading, and left no decisions to the subjective whims of the trader. It had every component of a Complete Trading System.”

This quote is taken from the published “The Original Turtles Trading Rules” at the OriginalTurtles.org website. I agree with this. It is further stated that it covers each of the following decisions required for successful trading:

1) Markets – What to buy or sell 2) Position Sizing – How much to buy or sell 3) Entries – When to buy or sell 4) Stops – When to get out of a losing position 5) Exits – When to get out of a winning position 6) Tactics – How to buy or sell
For this article I will skip components one and six. I will cover the other four. Not that I don’t find them important but choosing the markets to trade is important especially that the Turtle Trading System is a trend-following system and not a for-all-market-types system! Tactics, well you will learn this through experience.
I will also not explain the details of the rules and the mathematics behind the calculation. You can find these in the published rules and are strongly encouraged to download the rules from the website mentioned above.

[Edited: The rules in pdf format used to be available for free download but not anymore. The website is also no longer hosted on its own and is now part of a commercial website. A compulsory donation is now required to support that commercial website infrastructure. I feel this goes against the intended objective of the Free Rules Project which has the support of Richard Dennis. Here is quoted from an earlier download of the rules:The Original of the Free Rules Project. This project had its seed in various discussions among a few of the original Turtles, Richard Dennis, and others regarding the sale of the Turtle Trading System rules by a former turtle, and subsequently, on a website by a non-trader. It culminated in this document, which discloses the Original Turtle Trading Rules in their entirety, free of charge.]
The Turtle Rules In TradeStation 2000i
There are two Turtle trading systems which are called System 1 and System 2. I have coded both systems into TradeStation indicators and signals/system. In the examples that follow I will be using these for illustration. There are two features that I have not programmed. They are:

1) Pyramid of the 4th unit 2) Alternate Whipsaw Stop Strategy
EasyLanguage does not have a feature to retrieve the entry prices of all respective pyramid positions. It only allow for the first entry price of any pyramid entry strategy using the EntryPrice command and the average entry price of all pyramid entries using the AvgEntryPrice command. As such, I have to do backward calculation to derive the subsequent pyramid entry prices.

There are certain entry situations where it is not possible to calculate the entry price of the 3^rd unit, for example, when the 2^nd and 3^rd units were entered on the same day (when using daily historical data for testing). While the entry prices can be assumed using the ½ N pyramid rules, this is never a good practice. Without any reliable method of calculating the entry price of the 3^rd unit it is not possible to enter the 4^th unit. So I only program the codes to pyramid up to a maximum of 3 units only.
The ½ N Alternate Whipsaw Stop is too small for proper testing on historical daily data.
These aside, the other challenging part is coding the Last Losing Trade Filter. So in the process I programmed four indicators to show the properties of all theoretical trades to guide me. See Fig 1. The four indicators are:
1) The first shows the 20-day channels as blue dots. The 2N-stop and 10-day channel exit are red dots. These dots are superimposed on the price chart to give visual representation of all theoretical trades (no pyramid). 2) The second shows the unrealized and realized position profit/loss of all theoretical trades based on 1 contract position size.
3) The third shows the market position of all theoretical trades. 4) The fourth shows the N values from which the N on the day before a position entry is captured and used for the entire duration of the position for calculation of the 2N-stop and ½ N profit.

Fig 1. Turtle’s Indicators
Position Sizing – How much to buy or sell
The position size or unit rather, is based on a concept called N. N is the price distance of one Average True Range of the last 20 days. The Turtle’s calculation differ from the normal method of averaging where you add up the last 20-day and divide this total by 20 to get the average number. Instead the Turtle’s method uses what is commonly called the Wilder’s smoothing method.
Wilder explained in his 1978 New Concepts book that this method of “averaging” saves the amount of work required for manual calculation. Now remember in 1978, personal computers were not common yet. His method of averaging when applied to the Turtle’s N is to multiply the previous day’s N by 19, add to this value today’s True Range and then divide the total by 20.

This method has the advantage that it is somewhat weighted, that is, it changes faster to more recent price behavior yet doesn’t swing as wildly as the normal method of averaging. See Fig 2.

Fig 2. Turtle’s N and ATR
Since the dollar value of N represent 1% of account equity therefore this concept normalized volatility across different market. A market with higher volatility will have a bigger N and dollar value hence smaller position size while low volatility produce a smaller N and dollar value hence a bigger position size. Please refer to the published Turtles rules for detailed explanation if you don’t understand this.
Entries – When to buy or sell
There are two systems. Both are channel breakout systems. System 1 is shorter-term based on a 20-day breakout while System 2 is longer-term based on a 55-day breakout. Very briefly, System 1 would go long on a break above the 20-day high or go short on a break below the 20-day low. System 2 would go long or short on a break of the 55-day high or 55-day low respectively.

In System 1, there is a filter rule which is not applicable in System 2. System 1 will only initiate a position provided the last theoretical trade is a loss. If the last theoretical trade is a winner, then System 1 will only enter when price breaks out of the FailSafe breakout point of 55-day high (for long) or 55-day low (for short) to avoid missing major moves. Let’s take a look at this visually on the March 2004 Soybean Oil chart in Fig 3.

Fig 3. FailSafe Breakout
At point A, System 1 went short on a breakout of the 20-day low. This position was liquated at point B when price breaks above the 10-day high. A few days later at point C, price breaks above the 20-day high. This would have been a long entry but because the last trade was profitable, this trade was therefore not taken. About a month later at point D, price has traded higher to break above the 55-day high. System 1 then went long so as not to miss the bigger move that followed.

Fig 3 shows the system without pyramid so as not to clutter the chart for clarity. The same system is shown again in Fig 4 with the Turtles’ method of pyramiding. The Turtles pyramid to maximum of 4 units at every ½ N profit. Now because of a limitation of TradeStation EasyLanguage where I cannot reliably get the 3^rd unit entry price (to allow a 4^th unit to be added) so I programmed the trading system to pyramid to a maximum of 3 units.
The Turtles’ method of adding additional units with the stops tightened is very logical. It lowers overall position risks and yet enjoys maximum benefits when it catches good trend moves. However there will be times when this may pose a problem.

Fig 4. Pyramid entries

If you study Fig 3 and Fig 4 carefully, you will notice that there was an extra exit in Nov marked by the label “lxN”. This was followed by a long re-entry in early Dec. Explanation of the Turtles’ stops and exits will make this clearer.
Stops and Exits – When to get out
Like with any well planned trading system, the Turtles’ too have money management stops and normal trade exits.
The money management stops are placed at 2N away from the entry price of the last unit entered. The position risk for a 1 unit position is 2N. Since the 2^nd unit pyramid is added when price has moved ½ N in favour, the position risk for a 2 unit position is 3½ N (2N + 1½ N). Similarly, the total position risk for a 3 unit position is 4½ N (2N + 1½ N + 1N). The total risk for a full 4 unit position will then be 5N (2N + 1½ N + 1N + ½ N). Basically the stops for earlier positions are tightened up on pyramiding. Since 1 N represents 1 percent of account equity, therefore the respective risks are 2, 3½ , 4½ and 5 percent.
Now some will have problem with these risk numbers. If you recall in the last year’s July issue of Chartpoint, I wrote that my answer of 5 percent as the risk I would take in a position has caused my chance of a job opportunity with Commodities Corporation. So bear in mind that 5 percent is a very high number. But this is the way the Turtles trade and their high risk appetite may be the reason behind their tremendous record in such short period of time in the 1980s.
Trade exits are 10-days against for System 1 and 20-days against for System 2. This means that for System 1 when price violates the 10-day low, longs are exited, vice versa for shorts. For System 2, use the 20-day against. Therefore in short, System 1 is 20 in, 10 out while System 2 is 55 in, 20 out.
Okay now let’s see what exactly happened in Fig 3 and 4 that resulted in the additional exit and long re-entry.
The charts are reproduced in Fig 5.

Fig 5. Tightening of stops when adding units can result in whipsaw.

In the first situation shown on the top chart in Fig 5, the system was run without pyramiding, meaning only 1 unit was entered long on the Friday before 17 Nov. Immediately, the money stop was placed 2N below the entry price. This stop, represented by the red dots, was never hit and was eventually replaced by the 10-day low exit. This 10-day low exit condition was met on 22 Dec and the position exited as shown.

In the second situation shown on the lower chart in Fig 5, the system was run with pyramiding up to 3 units. The first unit was entered as above on Friday 14 Nov. The market then rose in favour of the position and when it hit the ½ N and 1N profits, the 2^nd and 3^rd units respectively were added according to the Turtles’ pyramid rules. The money stop was tightened (raised) so that it is 2N below the entry price of the 3^rd unit. See Fig 5. Unfortunately, the market retraced enough to trigger this 2N stop from the 3^rd unit entry price. The entire position of 3 units was stopped out as a result. The long position was re-entered when price broke out of the 20-day high again in Dec and exited as in the first example on 22 Dec.
This is one situation you have to live with when pyramiding. It doesn’t happen all the time but it does happen. Notice that in the example, the market did not retrace to the original 2N-stop calculated from the 1^st unit entry price.
How Do You Add Units Or New Positions?
While there are rules on maximum position limits for single market (4 units), closely correlated market (6 units), loosely correlated markets (10 units) and total limits (12 + 12 units), what I feel that is not properly explained in the published Turtle rules but which is very important is whether there are rules pertaining to adding units or new positions when trading a portfolio.
Adding units at every ½ N profits is fine when trading only a single instrument or even 2 instruments. Although the rules did stipulate a maximum of 12 units long and 12 units short for a total of 24 units (obviously this has to be a portfolio), this could translate into a total portfolio risk of 30 percent, assuming 3 long positions of 4 units each and 3 short positions of 4 units each. (Earlier, you have seen how a 4-unit position represents 5 percent risk.) In the event that all this positions turned out wrong, the portfolio will be down by 30 percent!
Is this acceptable? What if this is a new portfolio without any profit cushion? I think you have to use your own techniques since this part of the Turtles’ training was not revealed in the published rules.
Indeed A Complete Trading System, And A Very Good One
The Turtle trading system is indeed a very good complete trading system. But if you want to get some testing done with the presently available technical analysis software, you will be disappointed. All available software can’t test trading system against a stable of instrument but only with single instrument. Nevertheless, the logic is very sound, risk is systematically managed, and the result can be proven.
The Japanese Yen was one of my anchor trading instruments for many years so naturally I was interested in what type of result the Turtle System 1 would produce. The following are two sets of results – Fig 6 is without pyramiding while Fig 7 is with pyramiding. These are hypothetical runs on historical data for the purpose of system testing and evaluation. These are purely computer runs where no actual trades were done.

The tests was based on spot US Dollar/Japan Yen data and did not take into consideration FX swaps which would need to be done to carry spot FX positions overnight and would have effect on the profit and loss performance.
Both hypothetical accounts started with USD 100,000 converted to Yen on the first bar of data. All figures are in Yen.

I am very impressed.

Fig 6. Turtle System 1 without pyramiding.

Fig 7. Turtle System 1 with pyramiding.

How to trade forex using Hedging Strategy

Before I knew that it was hedging, I was already using it. I use it to protect my account from further loss, but aside from protecting your account from additional loss, you can maximize your profits by using hedging strategy.
What is Hedging? It is opening a buy and sell position at the same time with same lot volume. Sounds fantastic and great trading idea because wherever the market goes, up or down, you have a trading position that will be on profit, and when the position goes on the opposite you will profit again to the other position. But to many who uses hedging position at the first time, This result them to too much floating loss position, and when get out of control, they face margin call.
When to use Hedging Strategy? Most of the traders doesn't know when to use the hedging properly, though they have a good idea because the currency pair are moving in harmonic waves and the price keep on coming back to a certain price, they would really benefit from hedging. But the primary purpose of hedging is to protect the account, profit is only second to it.

We should use hedging to protect the account from further loss,its like freezing the account. If the market suddenly changes, hedge the position and analyze the market situation, assess if we have to use hedging or close the loosing position early instead of waiting for several years without assurance of good profit.
Hedging can also be use when we think that the price will going to reverse and comes back to our first position, we can use hedging instead of stop loss.
The best time to use hedging for profit is when the price has reach its peak like highest high, or lowest low, because most of the time it will reverse.

How to properly use hedging strategy? Before entering hedging, we should analyze first the market. Example, the price of AUDUSD reach 1.0400 after buying position of 1.0500, you already loose 100pips, if you think that the price will go lower, its better to hedge the position by selling same lot volume at 1.0400, so that when the price reach even as low as 1.0000, your loss was not increasing and when the price going up again to 1.0300, you may close your selling position at a small profit before it goes back to 1.0400.
Contrary to common perception about Hedging, it is not recommended for everyone, it should only be used by traders who have several years of experience in trading their chosen currency pair because Hedging will only cause confusion to newbie and starting traders.

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How to trade forex using Hedging Strategy

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