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Spoof's Trading Made Simple(r) Journal

  • #281
  • Edited 10:52am Aug 2, 2019 10:05am | Edited 10:52am
END of TRADING WEEK

Well, the end of the trading week is nigh. Some of you did very well based on the charts that have been posted - good job to you guys! Like I said earlier I finished the week down 1R. Lots of big moves this week that caught me - three losses and one win. Some of those moves went in our favour and some of them went against us - such is the market For those of us that suffered a negative week (hopefully it wasn't too bad!) just remember that this is absolutely normal and is going to happen (I just proved it ). Chin up and we will get it back next week. One winner for me next week and I am back in the profit

Reflect back on this week: How did you trade this week? What did you do well? What did you do wrong? How did you feel when placing and managing your trades? What could you improve upon going forward? Did you follow your trading plan and the system? If not, why not? You may want to choose to read some of the articles I posted on Post #1 to keep what it takes to trade well fresh in your mind as we go into the next trading week. Have a good weekend everyone, I am going to train legs shortly and then off to the beach to responsibly celebrate International Beer Day

Here is a quick video just talking about choosing the instruments you are going to trade and what to watch out for. We don't need to be trading 28+ pairs and taking every signal. If that is your mindset you are trading based on the emotions of greed and the fear of missing out. Learn to conquer that behaviour as that sort of trading mindset is going to lead to ruin.


Inserted Video
Emotion - it steals your money.
  • #282
  • Aug 3, 2019 7:45am Aug 3, 2019 7:45am
This about sums up my trading last week
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Emotion - it steals your money.
  • #283
  • Aug 3, 2019 10:01am Aug 3, 2019 10:01am
Quoting TheSpoof
This about sums up my trading last week {image}
Don’t worry. We will get back next week. Be positive
  • #284
  • Edited 11:55am Aug 3, 2019 10:54am | Edited 11:55am
TRADING TIP

K.I.S.S. Do your charts look like the first one? Have you traded on charts that looked like this? OK, it's a bit of an exaggeration, I know, but it gets my point across - complicated doesn't mean profits. The system I am trading is about as clean and easy as it gets. I am swing trading the four hour charts looking to catch 1-5 day swings. I get on board those swings based on what price is currently showing and riding the momentum. Getting into a trade is the easy part. I don't need 12 indicators to tell me when to get into a trade. Trade what we see not what we think.

I keep my charts clean and clutter free. There is no indicator in the world that will predict the length of a move once I get a signal to get on board and most of them are redundant offering me nothing of value. All I can do is manage the trade once I am in it and choose an exit method that I can apply consistently and the market will give me what she gives me. Here are some logical exit methods that you can chose from:

  1. Set take profit as a multiple of the initial risk i.e. 2R, 3R, 4R etc.
  2. Close the trade at the change in a candle color
  3. Close the trade when the HMA changes color
  4. Trail the stop loss by the parabolic SAR or behind the HA candles and let the market take you out
  5. Close the trade when the oscillator is no longer red or green.

Let's remember that trading does not need to made any more difficult or complex than it needs to be. We simply choose an entry method that makes sense and has shown itself to be reliable and then we intelligently, patiently, and consistently mange the trade after we are in it. Price goes up and price goes down. That's it - that's all. No fancy-ass indicators required to tell us that. No fancy-ass indicator can predict anything. For every time some indicator gives you a profitable trade I'll show you a time where it failed. If you can't show that a particular indicator is giving you more than a 50% probability of a successful trade then you should be asking yourself why is it on your chart? For every "filter" you add that keeps you out of a bad trade I am willing to bet it keeps you out of an equal number of great trades except by potentially saving yourself a 1R loss you keep yourself out of a potential 2R+ win? Doesn't make sense. That filter had better have a 60-70% probability of keeping me out of a bad trade or it isn't worth the time and effort to deal with it. Remember the 80/20 rule.

The indicators we use are showing us all the information contained in the candles but showing it to us in a meaningful way, that is, showing us a clear change in momentum is setting up and that's where we get on board and ride it for what the market will give us. Rinse and repeat. Let winners be larger than losers and over time we are consistently making money

I'll trade on the second chart all day long. Everything I need to make money is right there.

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Emotion - it steals your money.
  • #285
  • Aug 3, 2019 1:14pm Aug 3, 2019 1:14pm
My thoughts precisely.
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Emotion - it steals your money.
  • #286
  • Aug 4, 2019 4:34am Aug 4, 2019 4:34am
Thanks TS
  • #287
  • Aug 4, 2019 7:53am Aug 4, 2019 7:53am
Hi TheSpoof.
Thanks for all the help and great advise you are providing for us, I am still working hard on getting control of my bad habits, must focus more on my trading plan and not much on the money.
  • #288
  • Edited 8:40am Aug 4, 2019 8:28am | Edited 8:40am
Hey everyone...the new trading week gets under way in a few hours and the first full week of August. In an effort to take as much as the market will give me I am not going to set take profits this month and I am going to trail a stops and let the market decide what it is going to dish out. I know that this is what needs to be done to really make some good money over time. I am inspired by AUDUSD over the last few weeks as the initial trade went to at least 6R if the trade was held onto with two opportunities to pyramid onto the trade. Big money to be made on moves like that. They don't come along every week, but when they do...hello! Why not position myself to catch them when the market offers them?

So I am going to run this experiment for August to see how I fare from a psychological perspective because letting trades run is no easy task, but I really like the idea of just taking what the market gives me. Now, that happens all the time when we are stopped out - the market told us something - but setting a take profit is us as traders potentially cutting off a move early. I am going to use a change in oscillator color as well as monitoring the R levels that price is at to trail my stop and exit the trades. I hope this experiment will also help to really calm the mind when trading because the mindset here is not wishing and hoping that a take profit level will be reached, but simply calmly riding out what the market gives with no expectations. I'll take all that she gives me on each trade. I expect to get a lot of 1-2R trades with the occasional 3-4R, the odd whopper of 6-8R and the benefit of pyramiding onto a trade. I also hope to not take too many full 1R losses aided by the trailing of the stop in case price hits 1R and reverses. I believe that having the ability to calmly ride a trend for as long as possible and keep losses small is the hallmark of professional trading.
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Emotion - it steals your money.
  • #289
  • Aug 4, 2019 9:49am Aug 4, 2019 9:49am
Quoting TheSpoof
Hey everyone...the new trading week gets under way in a few hours and the first full week of August. In an effort to take as much as the market will give me I am not going to set take profits this month and I am going to trail a stops and let the market decide what it is going to dish out. I know that this is what needs to be done to really make some good money over time. I am inspired by AUDUSD over the last few weeks as the initial trade went to at least 6R if the trade was held onto with two opportunities to pyramid onto the trade. Big money...
Good call, I noticed this during my manual back tests yesterday, finding the right balance to trail it will be the hardest part.
for those who might be interested Manual back tester :https://www.forexfactory.com/showthread.php?t=721835
  • #290
  • Aug 4, 2019 9:58am Aug 4, 2019 9:58am
Quoting jado911
{quote} Good call, I noticed this during my manual back tests yesterday, finding the right balance to trail it will be the hardest part. for those who might be interested Manual back tester :https://www.forexfactory.com/showthread.php?t=721835
Far be it for me to give advice as I am only trading demo at the moment but I can recommend the FPA trailing stop EA. The settings I am testing at the moment is trail stop of ADR/2 with a break even stop of ADR/3 plus 3 pips for the spread. I did play with a SAR trailing stop for a bit but found it following a bit too far behind. I will be using these settings for this week to see what happens. Good trading to all.

A
  • #291
  • Aug 4, 2019 10:15am Aug 4, 2019 10:15am
Quoting jado911
{quote} Good call, I noticed this during my manual back tests yesterday, finding the right balance to trail it will be the hardest part. for those who might be interested Manual back tester :https://www.forexfactory.com/showthread.php?t=721835
Indeed. There is no perfect way to trail a stop just like there’s is no perfect indicator or system. Just pick a method that makes sense to you and be consistent with it. Remember, we are never going to squeeze every last dollar out of a trade nor do we need to. I’m going to learn to be content with whatever the market gives me because I know there will be some big, beautiful moves to be caught amongst the smaller wins. I also believe that trailing stops (unless too tight) generally won’t knock us out of good trades simply based on what I’m seeing. If we lose a trade it’s usually because of an errant price spike, chop or the movement is reversing.
Emotion - it steals your money.
  • #292
  • Aug 4, 2019 10:17am Aug 4, 2019 10:17am
Quoting 40PipsAlan
{quote} Far be it for me to give advice as I am only trading demo at the moment but I can recommend the FPA trailing stop EA. The settings I am testing at the moment is trail stop of ADR/2 with a break even stop of ADR/3 plus 3 pips for the spread. I did play with a SAR trailing stop for a bit but found it following a bit too far behind. I will be using these settings for this week to see what happens. Good trading to all. A
Thanks for the recommendation, a quick search resulted in finding this EA, can you confirm its the one you are using?
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  • #293
  • Aug 4, 2019 10:22am Aug 4, 2019 10:22am
Hi,
I am still learning,I was looking through your trading Report and I see..you have gained an negative amount of pips.
So are you still profitable with $ ?

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  • #294
  • Aug 4, 2019 10:24am Aug 4, 2019 10:24am
Quoting jado911
{quote} Thanks for the recommendation, a quick search resulted in finding this EA, can you confirm its the one you are using? {image}
Yes that is the one. Please post the settings that work best for you
  • #295
  • Edited 5:59pm Aug 4, 2019 4:22pm | Edited 5:59pm
Quoting handysniper
Hi, I am still learning,I was looking through your trading Report and I see..you have gained an negative amount of pips. So are you still profitable with $ ? {image}
of course possibe bro, because TheSpoof profit n loss based on %risk which is 1R:2R, not based on pips like what is shown using indicators (misleading), a positive number of pips shown may even result in negative dollar... Doesnt matter whether it is a loss of 25 pips or 40 pips, they are just still the same as 1R, which can be any % of the risk that TheSpoof has set, while on the other hand, a profit of 40 pips or 30 pips, still results in 2R...

maybe TheSpoof can explain better than me

Edit: The video made by TheSpoof on the next post is totally a much better explaination than mine... lol
  • #296
  • Aug 4, 2019 5:02pm Aug 4, 2019 5:02pm
Quoting handysniper
Hi, I am still learning,I was looking through your trading Report and I see..you have gained an negative amount of pips. So are you still profitable with $ ? {image}
Well. I was wondering when someone was going to notice I put together this frank video on my thoughts surrounding PIPs. Please, guys, let this be the end of PIP discussion here. I've made my case and I am well aware of what everyone else does...I used to be an "everyone else" and it wasn't working for me.

Inserted Video
Emotion - it steals your money.
  • #297
  • Aug 4, 2019 7:06pm Aug 4, 2019 7:06pm
Quoting 40PipsAlan
{quote} Far be it for me to give advice as I am only trading demo at the moment but I can recommend the FPA trailing stop EA. The settings I am testing at the moment is trail stop of ADR/2 with a break even stop of ADR/3 plus 3 pips for the spread. A
Care to share?
From tiny pips mighty oaks grow
  • #298
  • Aug 4, 2019 8:30pm Aug 4, 2019 8:30pm
Quoting Boo15
{quote} Care to share?
Average daily range of the pair divided by 3
EUR/USD- ADR is around 52 pips so trail by 26 and breakeven by 17 ish.
open to any better suggestions for trail amounts? Maybe the full ADR amount is best.
  • #299
  • Aug 4, 2019 9:09pm Aug 4, 2019 9:09pm
Quoting 40PipsAlan
{quote} Average daily range of the pair divided by 3 EUR/USD- ADR is around 52 pips so trail by 26 and breakeven by 17 ish. open to any better suggestions for trail amounts? Maybe the full ADR amount is best.
Back testing is about you’re best bet to see what tends to work out the best. I’m not sure of any other way other than just picking a number and going with it
Emotion - it steals your money.
  • #300
  • Aug 4, 2019 11:39pm Aug 4, 2019 11:39pm
Quoting TheSpoof
{quote} Well. I was wondering when someone was going to notice I put together this frank video on my thoughts surrounding PIPs. Please, guys, let this be the end of PIP discussion here. I've made my case and I am well aware of what everyone else does...I used to be an "everyone else" and it wasn't working for me. https://youtu.be/5m1byCOIFzA
"Well. I was wondering when someone was going to notice" ..that idiot was me... Man I just realized what you are saying...sticking in to a fixed lot size and trading based on the Pips while believing to make money on fx is ... ...thank you very much .!
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