Journey to consistency

The importance having a low DD is really starting to sink in.

Gurus often talk about RR but never DD, no wonder many blow up their accounts by over leveraging without a method that generates net positive results every month, every quarter. I wish more people talked about the importance of DD.

Surely can't be random, otherwise you would mess up your DD. Where to next

Setting up a new demo account

So this is going to be the goal

Max DD will be kept at 5%
4 consecutive losers will reach max DD
Only allowed 1-2 losers per week
Reach 3-4 winners per week
Can't have too many mistimed entries.
Only single mistimed entry is allowed every day, if you're wrong try to close it below 5pips.

Only positive expectancy will get me through this DD at 5%

My target will be 30-50pips, thanks skyway again the usual daily range for EA.

Bottom-line I don't care how much I can make, for now I'll only care about not blowing up this account.
Trial period will start from tomorrow and will run for a month.

I still haven't given up on you Nikkei same goes for DAX, what can you do ?

Think I'm going to stick with what worked initially buy above the open sell below the open. Sounds simple ? But to increase the probability I need a little more than that, since we're dealing with an index I'll have to go down to 5m, don't think I'll do multi TF for Nikkei.

I'll stick with DAX, (Nikkei) and EURAUD for the time being.

Levels

S 1.5474
R1 1.55
R2 1.5526

EA is at a crucial level on 4h major resistance R2 is hovering above last nights US high.
For now 15m we're still in the up phase. So no reason to sell it here. For now.

On 1h price had managed to climb above 1h 200ema, my experience tells me it could push a little higher from there. So despite the crucial zone on 4h I think I could take this to R2 if price falls a bit to S.

EA long up.

Quick short on Nikkei

I know the numbers do matter than the screenshots not for everyone else to see but for myself.
I have a separate demo account created to try out this method, but wanted to try it out on DAX first as DAX seemed a little more tamed than Nikkei.

But I couldn't resist Nikkei, it just shoots 50pips in a matter of 10-20minutes.

Nikkei opening setup range 70-100pips.

Chickened out of EA long.

It's very rare that price would go to your desired direction right after the entry point no matter how great you are at pinpointing the entry. I think I have to realize that and give it some time for positions to work out, - I'll give 5 candles after my entry for EA to work itself out if it hadn't hit my SL by then and if the setup looks still good should aim for my target range 30-50pips backed up with my levels for the day (and it shouldn't) SL is really my last resort if I'm really wrong I want to (trying) rescue the position before it hits SL.

Guess I shouldn't feel guilty about closing this one.
Time of the day of which you open a trade do matter.

I won't deal with Asian session in the AM anymore for EA.
But I'll start checking out setups at noon after lunch.

Asian session AM's will be dedicated to catching 80-100pips from Nikkei opening moves, usually happens an hour into the session holding time is non specified but usually 30-1h I'll just keep track of the range. There will days where price will just bounce within the range and not outside these scenarios happen usually when price is topping or bottoming - I won't be trading these. There won't be much to trade with these scenarios. Same thing with DAX, I'm only there to capture the moves around the open 60-80 I believe is the range for DAX. It makes sense that I trade indexes since the payoff is much greater and my working hours will be reduced by that much. So of course it's an attractive alternative. But let's just keep these 2 experiments running simultaneously. We'll reach some kind of a resolution after a while.

I can't take this supposedly long setup seriously.

So I've decided to wait it out. If it does goes up sure go ahead. But I have a feeling it may actually go down from here R 1.55 down to 1.5445

Another quick 20 on DAX

buy above open sell below

For now I don't know if I'm being just lucky or if I've got something that actually works. Only time will tell. I guess.

OR TE, I'll start trading Nikkei and DAX on my new demo.

Another thing that I was thinking about combining with this was, to trade away from my major MAs - the opening price also has to be around my major MAs - the faster we reach TP and the more pips is gained.

Let's compare todays DAX short (around 20pips 10minutes) with Nikkei short (100pips! 20-25 mins). See the difference ?

Combine the duration of each of these trades, usually 1 entry is good enough for DAX and Nikkei each more or less 1h of work I am tempted.. very much so.

In meantime I had been looking at EA since Asian session AM.
And still no setup thats worth taking - 30pips.

Bias remains short btw.

Well there it goes.
Sometimes you don't see the signal.

No trade for me for EA today.

I'll sign out here.

Opened 1 short , PA looked messy on 5m so I zoomed out to 15m and 1h, 1h PA didn't look too good to be trading - As soon as I was proven I was wrong to be shorting at this level 1h major support. I closed my position at -30 and opened long as price went above the opening price, PA on 15m 1h were moving upwards.

Rescue position came in, opened long after about good 30minutes there were many hoops to jump through major MAs all above the price it finally hit +30, I was happy to breakeven on a crappy PA day, tried to close it ASAP but only managed to erase 20 out of that initial 30 loss.

Not so bad after all.

EA levels

S 1.5350 - 1.5340
R1 1.5397
R2 1.5410

at 4h, daily major support back again at S

I have decided to concentrate on DAX for the TE attached as I will be trading DAX on my live acc in a month time. The basic principle of my trading method for DAX and for Nikkei remains the same.

However as the file I attached spread for Nikkei is pretty darn high compared with DAX and it also means that if I do bad on Nikkei I will do bad on DAX, therefore my winners will be amplified so are my mistakes will.

And I just can't afford to put this much burden on my upcoming relatively small test drive live account. In other words I can't blow up another account, I can't let that happen. I will keep my Nikkei trades on a separate demo.

Nikkei
2 trades taken

1 short was a loser (I went against my main principle which is fine I will do better tomorrow) - 33pips
1 long was a winner + 10pips

It was a slow day for Nikkei as it is expected for the first trading day of 2018

Net for the day = -23pips 1 lot
Drawdown for the day = -0.02% I just realized that I'm trading on a 100K account so DD on myfxbook is meaningless and I don't remember my initial balance. I'll just look at other indicators.

Break until Frankfurt open.