August 23, 2006
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Welcome to my thread and welcome to “WaveTrade”
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After over 2 years of looking at other peoples methods and trading systems, and ultimately losing over 10 grand, I was obviously becoming very frustrated and knew that there was a better approach to the FX market, especially better suited for me and my style of trading, considering risk/reward tolerance, schedule, and realistic goals. I have spent over a year now compiling data and back testing my system that generates between 3-12 signals per month on 1 day charts. Not very exciting for the day traders out there, but I am not a day trader, and even occasionally miss one of my own system signals. I have a great career, that pays me well that I thoroughly enjoy, it often takes me out of town, so when I am away from the computer, I sometimes miss the odd trade, I call this the price we pay to do the things we love! Anyway, enough about me. The system I developed consists of a years worth of baseline data that includes H/L/O/C, SMA’s, EMA’s, Stochastics, RSI’s, etc. Along with pivot points and specific mathematical formulas of the data, that I created and painstakingly back tested until it reached a degree of acceptability, we get a generated signal that gives us a glimpse of the future and a reasonable expectation of success. The philosophy is based on price spreads and for anyone who has studied a basic chart even with no understanding of technical analysis, it is easy to see that over time there are “waves” of ups and downs in the price movement of stocks, commodities, and yes Forex pairs. In my research, it was soon realized that each pair was unique to itself and required separate formulas and back testing methods. The risk reward ratio used is a 1 to 1 ratio, however I am still working on improving that ratio to decrease risk. Like most successful traders, I cannot overemphasize the importance of money management. The lack of attention to managing my capital in my early stock trading days, along with greed has burned me more than a few times, so the motto is “be patient”. I never deal more than 7% of my capital at any one time. I found this to be acceptable for me and this system of trading. Over the past year, using EUR/USD, GBP/USD, USD/CHF, and USD/CAN, we have generated 99 trade signals, of which 63 trades were winners and 36 were losses. The net pip gain over 13 months was 5883 pips.
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Some may ask why am I posting a journal. I decided to do this mainly for frustrated traders out there, like I was. Don’t give up, manage your money, don’t get greedy, and set realistic goals. I also did this for me, to keep me honest and focused. I am not here to sell my system and recommend not trading real money if you do follow my entry and exit signals, for there is no guarantee. For those of you who read my thread, feel free to ask questions, I’ll do my best to respond asap, most of all, enjoy!
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Northpro
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>Welcome to my thread and welcome to “WaveTrade”
<o
></o>After over 2 years of looking at other peoples methods and trading systems, and ultimately losing over 10 grand, I was obviously becoming very frustrated and knew that there was a better approach to the FX market, especially better suited for me and my style of trading, considering risk/reward tolerance, schedule, and realistic goals. I have spent over a year now compiling data and back testing my system that generates between 3-12 signals per month on 1 day charts. Not very exciting for the day traders out there, but I am not a day trader, and even occasionally miss one of my own system signals. I have a great career, that pays me well that I thoroughly enjoy, it often takes me out of town, so when I am away from the computer, I sometimes miss the odd trade, I call this the price we pay to do the things we love! Anyway, enough about me. The system I developed consists of a years worth of baseline data that includes H/L/O/C, SMA’s, EMA’s, Stochastics, RSI’s, etc. Along with pivot points and specific mathematical formulas of the data, that I created and painstakingly back tested until it reached a degree of acceptability, we get a generated signal that gives us a glimpse of the future and a reasonable expectation of success. The philosophy is based on price spreads and for anyone who has studied a basic chart even with no understanding of technical analysis, it is easy to see that over time there are “waves” of ups and downs in the price movement of stocks, commodities, and yes Forex pairs. In my research, it was soon realized that each pair was unique to itself and required separate formulas and back testing methods. The risk reward ratio used is a 1 to 1 ratio, however I am still working on improving that ratio to decrease risk. Like most successful traders, I cannot overemphasize the importance of money management. The lack of attention to managing my capital in my early stock trading days, along with greed has burned me more than a few times, so the motto is “be patient”. I never deal more than 7% of my capital at any one time. I found this to be acceptable for me and this system of trading. Over the past year, using EUR/USD, GBP/USD, USD/CHF, and USD/CAN, we have generated 99 trade signals, of which 63 trades were winners and 36 were losses. The net pip gain over 13 months was 5883 pips.
<o
></o>Some may ask why am I posting a journal. I decided to do this mainly for frustrated traders out there, like I was. Don’t give up, manage your money, don’t get greedy, and set realistic goals. I also did this for me, to keep me honest and focused. I am not here to sell my system and recommend not trading real money if you do follow my entry and exit signals, for there is no guarantee. For those of you who read my thread, feel free to ask questions, I’ll do my best to respond asap, most of all, enjoy!
<o
></o>Northpro
