THESE ARE NOT TRADE CALLS! This is a journal of my own personal trading to help me define my rules. If anyone places trades because I or anyone else did, they are destined to be broke.
Regards,
Ciscoguy
Rules
Worksheet:
- Does the price action meet all criteria for a trending market?
- Has the price action retraced?
- Did the retracement enter the area of Dynamic Support and Resistance (ADSR)?
- Did the ADSR hold?
- Has the price action bounced and closed outside the ADSR?
- Will this be a news safe entry?
- On lower timeframe, can you find a trading bar?
- Is the MACD confirming the trade?
- Is the profitable R/R zone reasonably S/R free i.e. No major Highs or Lows on longer time frames?
- Does this trade meet your MM rules?
Position Size: Full = 5 mini lots, Half = 3 mini lots, Double = 1 Full lot.
1. Stop Loss: Stop Loss orders must be placed with each trade. They must be placed at a point that offers the greatest confluence of support or resistance, while allowing for the proper Risk:Reward ratio.
2. When stopped out, unless there is a fundamental shift, the stopped out order should be re-entered in the place it was stopped. This is a TREND TRADING SYSTEM! The trend will bring price action back! Re-entering a position where it was previously stopped effectively returns your lost money (minus the spread). it also puts that position at a deeper discount than the original order.
3. Countertrend Trades are not acceptable using this system.
4. Charts/Timeframes: The 3 SMAs and price action determine what chart I am using. Only pairs that have a current trend, as defined by the rules, will be traded. They will only be traded from the chart/timeframe that owns the trend.
5. If there are no trending markets that are tradable, then GREAT! It's a day off. I'll go sailing or golfing and take a look at London's open the next day.