This is my first attempt at systematically cataloging my trades along with comments and annotations. I hope to be able to review these trades after sometime and learn from mistakes. I trade a small live account.
HOW I TRADE:
Timeframe - weekly
Entry -
1. Fresh trade - Enter on the weekly close price when price breaks through and closes above a previous resistance (HCR) or closes below a previous support (LCS). I use a mechanical basis for this and I will take all trades regardless of how minor the LCS or the HCR appears. I often use line charts to determine LCS and HCR.
2. Reverse trade - I will stop and reverse at the extremity of the bar that closed above / below HCR / LCS. I have found that there is very good momentum if a trade reverses so this makes for a high % trade as well.
Stop -
Above / below the bar that breaks through.
Exit -
1. Being stopped out.
2. First profitable close if the latest bar doesn't close above or below another HCR/LCS. If it has, I will hold until I get another profitable close.
What I expect -
I expect more wins than losses. Average wins in the region of 0.6R, losses in the region of 0.9R.
In the next post, I will cover an example.
HOW I TRADE:
Timeframe - weekly
Entry -
1. Fresh trade - Enter on the weekly close price when price breaks through and closes above a previous resistance (HCR) or closes below a previous support (LCS). I use a mechanical basis for this and I will take all trades regardless of how minor the LCS or the HCR appears. I often use line charts to determine LCS and HCR.
2. Reverse trade - I will stop and reverse at the extremity of the bar that closed above / below HCR / LCS. I have found that there is very good momentum if a trade reverses so this makes for a high % trade as well.
Stop -
Above / below the bar that breaks through.
Exit -
1. Being stopped out.
2. First profitable close if the latest bar doesn't close above or below another HCR/LCS. If it has, I will hold until I get another profitable close.
What I expect -
I expect more wins than losses. Average wins in the region of 0.6R, losses in the region of 0.9R.
In the next post, I will cover an example.