Equity Millipede - Trading Journal

Building a journal around the "Building An Equity Millipede" thread to evaluate the system. Post 1 will be for continual updates of the results, as well as a work in progress of important information.

Since I am trading from the United States, management and tracking of trades, similar to the thread will present a challenge due to US rules with accounts. Sub accounts will be used to allow trading a currency pair both long and short at the same time, as well as having multiple positions with the flexibility to close out a position after the initial position has been taken to cover losses and keep the account balance growing.

Starting capital = $20,000 broken down into 4 accounts to accomplish above flexibility.

Objective = Develop 5 mini lot positions per account, similar to discussion in thread. Additional accounts added as continued positions are added per pair, for closing early flexibility.

Metrics = How many trades does it take to develop one trending position? Pips lost (average) to develop each trending position or legs?

Instrument Evaluation



Updated Trade Log

Trade 1 - GBP/AUD - Monthly has been moving up since 11/2016. Weekly last 12 weeks moving up. Initial entry close to candle opening, position has survived yesterday and now moved to BE.

Trade 2 - EUR / GBP - Monthly 2 strong months, breakout out of range. Weekly 9 weeks declining with lower high and range break. Entry at 0.8605 at resistance block.

Update - day is closing and moving to BE. End of day price - 0.8555. This is a close below the monthly open price. Hopefully a nice bearish candle for March.

Week 1 - Update / Review

Attempted 2 trades this week to begin. Both moved in positive direction, however could not last the week at breakeven stop loss. Reflecting on each - GBP/AUD made a good attempt to break resistance, however it has not had a proper correction on the daily, so trade was at risk for too high of an entry. EUR/GBP - good break out of range, may not be ready to complete the full break lower yet.

Next Week Set Ups

GPB/AUD - Look for re-entry at a confluence of support and fib retracement. Just coming upon 38.2 retracement at Friday close.
EUR/GBP - Look for short re-entry if it remains outside of long term range.
USD/CAD - Good weekly, monthly trends, daily starting to pull back
AUD/JPY - Monthly, weekly trends down, look for entry point

With Brexit going on this week, staying away from GBP pairs for the moment. However, other target entries are:

USD/CAD - Looking for proper corrective pullback to 38.2 and support block.



USD/CHF - Same scenario as the USD/CAD, looking for corrective pullback to support block and 38.2 fib.



EUR/USD - Last week broke through to 1.11 zone and is now correcting. Currently in descending channel. At 1.1284 resistance block, price is absorbing into the zone, so expecting to go higher. Ideally, we move higher over time to top of block and towards trendline. Then, looking for the break long term below 1.12.

Adjusting entry on the USD/CAD down to 50% level. As price is moving down, an ABCD pattern has emerged to complete, in addition to support structure. So, a nice confluence at 1.3303 area.



Entered on USD/CAD on double bottom on M5.



Holding off on EUR/USD to evaluate price action at top of resistance block (1.1320), as it may go up to the trendline, since there is more room to move today.

Same for USD/CHF at 1.0047. Update - Entered on USD/CHF at 1.0050 on M5.

USD/JPY entry shortly after day open - 111.26. Daily chart starting to move higher after correction.



Update - Since we have broken through monthly open and cleared 111.45 resistance, moving to BE.

Trade 6 - EUR/NZD - Entered shortly after the open 1.65401. Downward momentum on weekly and monthly. Daily has had a couple days of correction and reversed at the 61.8. Looking for break of weekly open and move down.

Trade 7 - EUR/USD - Entered at the retest of the 1.1320 - 1.1325 resistance block. Trendline resistance at approximately 1.1365. Good monthly and weekly momentum to the downside. Daily has corrected and pullback.

Week 2 - Update / Review

Attempted 5 trades, all 5 remaining in play. The USD/JPY and the USD/CAD had broken resistance / support and moved to BE. Remaining 3 still looking for a move in the position or to exit with small losses. USD/JPY +18, USD/CAD +11, USD/CHF -32, EUR/NZD +6, EUR/USD -3 at the end of trading on Friday.


Next Week Set Ups

Now that the votes for Brexit (at least initially) have passed, looking at GBP pair attempts this week.

GPB/AUD - Look for re-entry possibly to test 1.8720.
EUR/GBP - Look for short re-entry if it remains outside of long term range.
GBP/CAD - Monthly, weekly trends up and beginning to move. Look for next support for entry.
AUD/JPY - Monthly, weekly trends down, look for entry point
GBP/JPY - Long entry at support. 149.50 next major resistance to hopefully clear.

Trade 8 - EUR/GBP - Re-entering short, which has had a stronger break to the downside from last week and pullback towards broken range. Short at 0.8570 at resistance block and monthly open.

Stopped out of the USD/CAD last night, so will look for reentry at some point this week.

Trade 9 - GBP/CAD - Entered long at 1.76649. Weekly is moving up, day has pulled back today and now bouncing off support. Also, like we are making higher lows going into the resistance of 1.7792. Looking for a break above 1.78 handle.

Trade Updates - USD/JPY - Still hanging on by a thread to being stopped out at BE. However, additional support has been made just above my entry and hopefully it is up from here.



EUR/USD and USD/CHF - Going to be moving soon. EUR/USD coming against two trendlines (a long term bearish one, versus a short term bullish one). The winner should emerge the next couple days.



USD/CHF is down 40 pips, but against alot of support - trendline, parity and support block. Key data coming out tomorrow on exports should have the pair moving.

EUR/NZD - Resistance block has been breached, existing with small loss of -22 pips.

Update - Stopped out at BE on the USD/JPY. Reached high of 111.89 before falling back. Pair is in a triangle pattern with breakout coming. Looking for reentry long.

Trade 10 - GBP/AUD - Entered on breakout above monthly open and holding above support block with trendline break. Another reload for long position.

Back to the drawing board, as all four trades were taken out yesterday. 2 stop losses and 2 BE. 10 attempts so far with 0 positions moving. Many were profitable, but not much follow through at this point. We will be patient and keep taking shots. At one point in the thread, it was asked if you could handle 20 losing attempts to get one leg going. This method requires patience and persistence...

Trade 11 - EUR/AUD - Entered Long 1.5903 on a cup / handle formation on the M5. EUR/AUD is trending up on daily, weekly, monthly. A new approach to try is to look for entries on pairs with good weekly, monthly trends, but having a poor day. Then, looking for pair to bounce back into daily trend. Hopefully, this will give a better opportunity for entries to last. First attempt with this method.

Week 3 - Update / Review

All open trades from last week knocked out at BE and a few losses. Ended the week with 1 open trade which is the EUR/AUD. Adjusting strategy of entry to pairs with weekly, monthly trends and looking for daily pullbacks for entry versus riding the wave, then the tide coming back in. Looking to catch the entry as the tide is coming back, then moving out.


Next Week Set Ups

Long Set Ups

GPB/AUD
GBP/CAD
EUR/AUD
GBP/USD
USD/CAD

Short Set Ups

EUR/JPY
AUD/USD
CAD/JPY
AUD/JPY
EUR/GBP

Trade 12 - GBP/AUD - Long at 1.85376 on a pullback on the day. Entry was double bottom and daily had a 3 bar pattern right at the open / close of the down candles.