Guevara Elite Trading Manager (GETM ) Description & Software Instructions

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1 Guevara Elite Trading Manager (GETM ) Description & Software Instructions GETM is a product designed by the Guevara Capital Group of companies exclusively for use by clients that are being trained by our own traders. The software product is a modified version of a component of the Guevara Capital internal proprietary trade management platform that has been built over many years. Guevara Group has invested significant capital into the development of its internal technology ensuring that we remain at the leading edge in systematic trade management How GETM Provides You With An Edge Needed To Be A Successful Trader Successful hedge fund managers and institutional traders and investors know that to be consistently successful and profitable as a trader, the entire trade process requires a systematic approach. It is a fact that for a trader to exploit or mine an edge then there absolutely needs to be a highly regimented, structured and consistent approach to extract and deliver this edge. Successful trading is simply NOT about looking for a so called high probability trade and risking, say, 1% on that trade. This simply will never work. There is so much more to being a consistently profitable trader. The following components are critical : Portfolio What exact markets or currency pairs am I trading? Risk Per Trade What is my exact risk per trade? Trade Inception What trades am I looking to engage risk in? Trade Management Where is my stop and where are my targets? Trade Consolidation How am I going to put all this together? Recording and Auditing How can I best capture and record on a daily basis my orders and trades? Statistics How can I keep a record of all trades in the portfolio for detailed analysis? Research How can I maintain records that will help me in my research of my trading? GETM captures all the above. It provides you with a working environment that enables you to be way ahead of the crowd and approach trading with structure similar to a successful institutional trader. 1. Getting Started How GETM Works Instructions Manual GETM is locked for security purposes. To unlock the software you will firstly need to contact Guevara Client Liason via at info@guevaracapital.com and you will be provided with the code to unlock the software. 2. Password Once you have the password, you will need to firstly open the MT4 trading platform. 3. Link MT4 Data to GETM In MT4 go to Tools then Options the Server and check that the Enable DDE Server box is ticked 4. Enable MT4 Platform And Currency Pairs Right click on any currency pairs and left click on Show All. This will enable all currency pairs that GETM trades in the portfolio.

2 See the stills below

3 5. Two Working Tabs There are 2 main tabs in the spreadsheet that you will work with : GETM Orders and GETM Trade Audit Trade Audit Tab : All trades are recorded on this sheet. All columns highlighted in yellow need updating via the toggle attached to each cell Order Tab : Any orders, whether based on new trades or existing trades, are placed in this tab. Again, updates required are in yellow 6. Trade Categories The following categories or types of trades are included in the GETM Trade Audit sheet in Column E : NO TRADE LONG ENTRY SHORT ENTRY LONG STOP SHORT STOP 1ST TARGET LONG 2ND TARGET LONG 1ST & 2ND TARGET LONG 1ST TARGET SHORT 2ND TARGET SHORT

4 1ST & 2ND TARGET SHORT 2ND LONG POSN STOP 2ND SHORT POSN STOP 7. Placing An Order Let s place an order in the market. We want to go long AUDUSD at on 4 th Sep 2014 : Go to the tab GETM - Orders Cell A3 = Today() Cell C3 = YES Cell D3 is automatically calculated from your account size Ensure that your account size is entered into Cell P1 Cell E3 = NEW as we have no existing position and wish to place a new order in AUDUSD Cell F3 = B as this is a buy order Cell G3 = the buy entry stop order of Cell L3 = the current ATR(7) for AUDUSD which is 40 pips Cell H3 automatically calculates the stop of This is ATR(7)*1.10 Cell I3 automatically calculates the first target (T1) of Cell J3 automatically calculates the second target (T2) of Entering A Filled Trade

5 Let s say that we were filled on the long stop entry at We now need to enter that position : Go to the tab GETM Trade Audit Cell C3= LONG Cell E3 = LONG ENTRY Cell F3 = Entry Price Cell G3 = Date of Trade Cell H3 = Trade Entry Price Note : IT IS IMPORTANT that on the first day a trade is entered in the Trade Audit tab that Column H, the previous close is entered as the actual entry price of the trade. This allows proper calculation of P/L Column I links into live market data and updates prices Column J calculates the daily marked to market (MTM) value of any open position. In this cash as AUDUSD at The difference between the entry price of and = 40 points. Therefore the profit on the long AUDUSD trade = (.0040*53,000) = $US214. We will later convert the portfolio gain/loss to AUD 9. What Happens Next? Now that we have placed our order and been filled and input trade details as above, the following process needs to take place : Copy and paste rows 3-32 in the tab GETM Trade Audit to tab GETM Trade History Copy then Paste Special then Values Ensure that you update Column A in the GETM- Trade History tab to reflect the prior day, i.e. 4 th Sep, because when we complete this copy & paste function into the GETM Trade History tab, the US is still on the 4 th Sep, the trades we are copying in are from the 4 th Sep, yet today is the 5 th Sep. The above 2 steps are VERY IMPORTANT

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7 This tab is where the full daily audit is kept for every trade in every market every day. As each day is completed you add the cells below the previous day s currency pairs. Each day we will repeat this same procedure 10. Trade Management Day #2 Still Long AUDUSD We went long AUDUSD on 4 th Sep It is now 5 th Sep. As we have an open position we need to manage this as an order. We also need to properly manage it in our GETM Trade Audit module. The following details what we need to do and how we deal with various scenarios given to us by the price movement in AUDUSD : The next day at the close of US trading the AUDUSD closes at Remember, we closed on 4 th Sep at So we have gained an extra 20 pips. That close is reflected in Cell I3. To ensure that we are maintaining a consistently accurate representation of the daily P/L movement in our position, we need to perform the tasks described in the above #8 at the same time each day (US EST 17:00) to correctly capture the closing price for each day. Remember that the prices in Column I in GETM- Trade Audit, are DDE linked into live price data in MT4 and are changing, so we need to capture that snapshot and paste into the GETM - Trade History tab We are still long AUDUSD. So we need to leave an order. As follows : Go to GETM Orders tab In Cell H3 place yesterday s stop price, which was In Cell L3 place the closing price for 4 th Sep which is Note that Cell I3 changes the stop from the close of minus 44 points and gives us a trailing stop of

8 Notice in the GETM Trade Audit tab that now we have updated Cell H3, the profit for the 5 th has gone up. This assumes that at the end of trading in the US on 5 th Sep that we haven t been stopped out at , nor have we reached our first target (T1) at The close of adds 20 points more profit or $105 for that day Let s say on 5 th Sep that we reached our first target of In Cell E3 we toggle Ist Target Long and that will calculate a profit of $210 for that day

9 The rest of the trade categories in #5 above are all able to be catered for on the basis of one of those scenarios playing out on any day. The exact same rules apply for each other currency pair The GETM Trade Audit tab also has the ability to maintain on every day a dollar and nominal % change in the value of your account. 11. Recap Of Procedure Every Morning In GETM At the close of business in the US/Open of business in Asia we need to ensure that the following procedures take place to maintain correct daily P/L and order and trade updates. As follows : As we have the sheet DDE linked for auto price updates into MT4, we need to take a snapshot of all open positions on the GETM Trade Audit sheet. As this sheet will only be correct for any open positions we need to check what fills we have from overnight trading. The fills will be : Stops of prior open positions,

10 New positions that are open and haven t met T1 or T2, positions that were entered into and stopped overnight. These need to be entered into the Trade Audit tab. As Column A in the Trade Audit tab defaults to = Today() as a formula, you need to change Cell A3 to =Today()-1 as when we walk into our office today (eg Sep 16 th ), all trades done overnight were for the trading day on Sep 15 th The as follows, copy cells A3:K32 The Paste Special then Values at the bottom of GETM Trade History Tab Then from the GETM Trade History Tab, copy column I closing prices, in this case for Sep 15 th, and paste into GETM Trade Audit Tab in the Previous Close Column H as follows :

11 This ensures that we start the new day with all current positions that are correctly market to the close in NY and any subsequent moves in the value of our portfolio can be correctly tracked in Cell S3. Make sure to change Cell A3:A32 to =Today() so we have today s date 12. SUMMARY START OF DAY PROCEDURE Look at all orders/positions from overnight trading in the Orders tab. Go through market by market and whatever fills have occurred (since the start of trading from prior day at around 5PM NY), record those fills in the Trade Audit tab Once that has been done and you are satisfied that ALL trades are in and with details correct, copy/paste Cells A3:K32 to the Trade History tab. Make sure you paste and then paste special values

12 Then copy the closes in Trade History tab for that day (Col J) into the Trade audit tab Col H Then in Trade Audit tab change Col E all back to No Trade. This is because we have started a new day and all trades from overnight and yesterday are already recorded in the Trade History tab. A quick check is to run your eye over the current P/L in Trade Audit tab Col J and you should have P/L close to zero assuming there hasn t been a big move between current live rates with open positions and where you closed the book off for the day prior to moving to Trade History Go to Orders tab. Fill in previous stops in Col H for all positions currently open. Simply copy from the respective cell in Col I to Col H. Once that is done, copy/paste from Trade History closing rates in Col I to Orders tab Col L You can now work out what orders you want to put on today in Col F/G