I'm going to forward test a money management strategy on my micro account. I just don't like demos. I suppose if I get to a point where I want to test larger trade sizes it's good. I just get bored unless there is some real risk.
Contemplating the EUR/GBP perfect mollusk setup, the spiral couldn't get any more precise. It was on rejection of the 38.2 level on the first butterfly fib.
The idea is to increase position size as the fib distances grow, there must be a perfect math formula for it. I want to experiment with take profit and entry scenarios that more precisely follow what the math actually does. Increase risk but also tighten stops as it reaches for the 423.6 then exit all positions and restart on the next fib.
Mathematically it is like turning up the volume on the speakers to max then cutting it at the 423.6 level, or 10 on the guitar amp. Or is it better to reverse the strategy and start with the volume at 10 then turn it down incrementally?
Broke resistance tempted to get in early.. I really like the idea of set and forget the highest probability setups though, so perhaps I'll wait, just to be disciplined.
The question of how tight should the stop be. Stopped out, then it went my direction on perhaps all of these. At least silver is doing good, although it's bouncing off the 261.8 it's highly likely to continue to the 423.6 and perhaps further but I get out there.
This is why I said it appears I am pretty good at analytics and forecasting but bad money management. Nitpicky documentation of flaws here will turn a weakness into an edge.
Super small account trading less than penny sizes, just to toy around with fib strategies. I wont post all the trades here but if I start increasing position size or show a good consistent profitability perhaps I will update. I want to spend time testing this new strategy but don't want to use hardly any money.
I'm only taking grade a setups from now on with my other accounts. I think adding to positions has gotten me into more trouble than it is worth much of the time. Why add to it? Only because you could have exited earlier, or it just increases risk too much. Overloaded positions.
With Oanda I can basically test it as if it was a demo but it is real money. This is my old account that I transferred almost all the money out of.
The idea here is to master the set and forget method. Once the trade is placed, it either hits target or stops out. I want to not mess with trailing stops unless I can automate it, and the trailing stop option when placing an order doesn't work that well.
Trading the daily from the micro account. I am busy doing other things and am not going to watch the charts much, unless some huge spike catches my attention or the perfect scalping setup. 100 pip stop and 400 pip target default entry, although I adjust it after it is in the money a bit.
I think for the most part the daily is the most accurate to trade from. It's easiest. Patterns are more discernable.
I shifted my focus to my immediate cash flow needs. I'm buying houses, investing in reits, eventually working my way up to luxury properties. I like nice places. The place I am in now has antique furniture and artistic decor. There are some places where houses just don't get any cheaper I can buy for 10k and put 30k in then rent for 1k or more. This is rock bottom of the housing crisis. Sure some areas have recovered but scan the globe and it is easy to see the market is still in the dip overall.
Forex is fun and I sure hope to master scalping one day but it is really time consuming. I am limiting scalping to the NY pre and 1 hour after the bell. Then I am out unless I notice a swing trade I may leave a runner until the next day. The same stocks often continue their trend after an engulfing candle.
Sunday at 2 or 3 pm Pacific is best for weekly analysis. Tradersway opens at 3 although Oanda is already open at 2.
Just getting into commodities, I perhaps will go with Optimus after a little more due dilligence since they want 2.5k to start for their bot. Regulated though so it should be fine. Looks like the owner has the entrepreneurial spirit and wants to make it a good competitive company. Often young energetic types are the best to do business with.
Excited to learn more about bots and programming but again the education takes time so I will juggle it in.
