I love reading from Lao-Tse...

here's a great quote...

“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.”


The demo of my new grid is working perfectly. The gain so far is slightly better than 5% on the month, and the drawdown has not exceeded 2%.

Here's the essence of it:

Perfectly hedged positions in two different sub-accounts.

Add to positions in a grid-fashion only in the direction of the position - ie, only add buys ABOVE the base position in the Long acct, and only add sells below the base position in the Short acct.

Close out the entire grid when the overall UPL gets to +2%.

Close out individual trades as needed, using trailing stops and take-profits.


I have a kinda-complicated worksheet to keep an eye on everything, that I update every morning and after any activity. It keeps track of the overall acct balance, NAV, DD, margin used, and exposure.

My goal with this strategy is 1% a week, with the DD never going higher than 5%.


I cant wait to take it live. Getting closer - one of three HPC accounts has been closed and the other two are tantalizingly close.... I almost gave in yesterday and closed them with a 2% and a 4% loss, but on top of the 30% that i took in March, i just couldnt do it. however, these positions are now almost 3 months old so if i get that close again, i may just take it.

The correlations-filter on the HPC is headed back in the right direction and may signal a new "Buy" entry in a couple more weeks......

I am also almost at the first anniversary of my Science of Getting Rich goal-setting. Will have to do some thinking in the next couple of weeks.