Systematic Trend Trading

Trade 73 stopped

Trade 74 EJ short

Trade 72 & trade 74 stopped

Trade 75 EJ short

Results:
Week 1 +4R
Week 2 -14R
Week 3 -2R
Week 4 -3R
Week 5 +3R
Week 6 +4R

if we don't have the week 2's -14R episode, this mechanical approach may have real potential.

just curious, did you look at week 2 in detail to see what transpired, and see what could have been done differently? i understand looking at discretionals may not be the purpose of this thread.

Hi 60M,

I used to follow you on previous thread (H4 power and Buy Sell line) which are part of my trading now.
Do you still use those strategies or not. If not why ?

Thanks for sharing.

Strangely enough it wasn't week 2's -14R that has been the problem so far, it was week 5. I broke my management rules in week 5 and missed out on a big winning week.

This is a pretty extreme version I am running that does have long drawdown periods but will make very high returns. It does require a lot of patience though and very disciplined execution.

Hello again Thierry, this is essentially the same. A very simple strategy using limited analysis, simple trend indication, simple momentum entry. The edge comes from stretching the RR. I have tested these ideas to breaking point and what is clear is that although you can play with trend indication and entry pattern until you're blue in the face, it is only really how the market moves and the RR/trade management that will dramatically change your results. "let your winners run and cut your losers short" - is the core idea.

Also it teaches about position sizing - the really big returns require a lot of volatility - you have to be prepared to take deep drawdowns to win big so setting position size well is important

Trade 76 stopped

Trade 77 EJ long

Trade 77 stopped

Trade 78 EJ long

Trade 78 stopped

Trade 79 EJ long

Trade 79 stopped

Trade 80 EJ long

MY GREATEST “AHA!” MOMENT THAT TURNED ME INTO A PROFITABLE TRADER


Despite having come up with a complete trading strategy, I kept on losing money consistently for several years. At some point, I faced reality and decided to take a break and re-read some of my favorite trading books.
In the book Momentum Masters, two particular quotes really caught my attention:
“It is post-analysis that turned my trading around early in my career” – Mark Minervini


“I believe that if struggling traders spent as much time studying their trades as they did their charts, then they would be way better off” – Mark Ritchie II
Reviewing my past trades was something I had always neglected up until that point. So since nothing else was working and I was stuck, I decided to take the plunge, and take the time required to face the music and go through something like my past 500+ trades.
I took me almost 2 months… but this was my biggest personal breakthrough, the tipping point between losing and making money consistently:
I discovered that by blindly following my rules, I would have made an astonishing 40% and 75% return in the last 2 years.
So instead of losing money for 2 years in a row, just by following religiously my set of rules, I would have made a mind-boggling 145% return.
The implications of that discovery were absolutely life-changing to me. The key was not anymore to try to make money. The key was simply to strictly follow my rules, regardless of the outcome of any single trade. The focus was not on the money anymore. The focus was on having the utmost discipline to follow my rules.
The very meaning of “good” and “bad” trade had completely shifted. A good trade was not a trade where I made money anymore, but a trade were I followed my plan perfectly. A bad trade was now a trade where I violated my rules.
The short-term outcome of whether my last trade was profitable or not – had no more importance anymore. I had complete confidence in my strategy. I knew that by the end of the year, given the fact that the odds were in my favor, I would have made money.

Some examples of what to expect from very high RR trading. One from a fund in the top 30 funds of all time, one from a member of my facebook group

Trade 80 stopped

Trade 81 EJ long

Trade 81 break even

Trade 82 EJ short

Trade 82 stopped

Trade 83 EJ short

"In life, drama is glamorized and used to usurp our attention. Advantages in life, however, are not based on drama but rather are the byproduct of doing mundane things every day really well without losing focus."

Results:
Week 1 +4R
Week 2 -14R
Week 3 -2R
Week 4 -3R
Week 5 +3R
Week 6 +4R
Week 7 -7R

Trade 84 EJ long

Trade 83 & 84 Stopped

Trade 85 EJ short

Trade 85 stopped

Trade 86 EJ short