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Spoof's Trading Made Simple(r) Journal

  • #501
  • Aug 12, 2019 8:48am Aug 12, 2019 8:48am
LESSONS LEARNED?

So I had a trader PM me this morning lamenting that he had blown his trading account with these methodologies. I asked a few simple questions and lo and behold here is what this trader was doing:

  1. risking 5-10% per trade
  2. taking every signal on any pair that offered it
  3. moving stop losses wider after the trade was on and taking >1R losses
  4. not having a solid, consistent exit strategy for the trades
  5. I am sure there are other bad habits going on in the background as well

Is anyone surprised that this trader blew his account? Fear, greed and poor money management will NEVER lead to consistently profitable trading - EVER.

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Emotion - it steals your money.
  • #502
  • Aug 12, 2019 9:00am Aug 12, 2019 9:00am
Quoting TheSpoof
LESSONS LEARNED? So I had a trader PM me this morning lamenting that he had blown his trading account with these methodologies. I asked a few simple questions and lo and behold here is what this trader was doing: risking 5-10% per trade taking every signal on any pair that offered it moving stop losses wider after the trade was on and taking >1R losses not having a solid, consistent exit strategy for the trades I am sure there are other bad habits going on in the background as well Is anyone surprised that this trader blew[/highlight]...
Yep. I also like to keep aquariums. Fancy goldfish, cold-water river biotopes and Betas. People will see them and say ''Oh, you do so well, looking after and keeping all those beautiful fish so healthy!'' However, you know what? What I actually do is look after the water. Keep the water healthy and the fish take care of themselves.

Enter a trade where you like - but have a rock solid plan about what you are going to do once you are in that trade. Never deviate. Manage the risk. Then the ''fish'' will take care of themselves.
  • #503
  • Aug 12, 2019 9:08am Aug 12, 2019 9:08am
Quoting TheSpoof
{quote} Answer 1: I move my stop manually and generally follow the parabolic SAR. .......
Thank you for sharing your thoughts, much appreciated. It does help bring some perspective..
The more you learn, the more you see
  • #504
  • Aug 12, 2019 9:11am Aug 12, 2019 9:11am
You NEED to break this cycle if you ever hope to make consistent money from trading. STOP IT!
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Emotion - it steals your money.
  • #505
  • Aug 12, 2019 9:24am Aug 12, 2019 9:24am
what do you guys think about GBPAUD...
valid signal forming right now ?
or already to late once the candle is closed ?

oh and spoof... do you never check the dailies before entering a trade ?
I've never read you talking about that...
I mean- you mention major resistance and support zones - but do you check them - or the trend - on the higher timeframes or not ?

Best,

Mark
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  • #506
  • Aug 12, 2019 9:24am Aug 12, 2019 9:24am
TRADING TIP

Hey guys...I notice that there are people bouncing back and forth between my journal and RH's original thread. I am going to ask you guys that are doing this to really make sure you are not just confusing yourselves with too much information and bouncing around between various ways to trade these methods. It is no different than system hopping and is doing you no good. All of us have different trading experiences and perceptions of the market and thus will trade the very same methodologies differently - sometimes radically. At some point you need to settle in on a trading method that works for you, makes sense to you, suits your lifestyle and temperament and that you can begin to apply consistently and master - the money will then come as a result of trading well.
Emotion - it steals your money.
  • #507
  • Aug 12, 2019 9:27am Aug 12, 2019 9:27am
Quoting mtacki
what do you guys think about GBPAUD... valid signal forming right now ? or already to late once the candle is closed ? oh and spoof... do you never check the dailies before entering a trade ? I've never read you talking about that... I mean- you mention major resistance and support zones - but do you check them - or the trend - on the higher timeframes or not ? Best, Mark {image}
Those candles are too big for me - just my opinion and I could be wrong I did a video explaining my thoughts behind using other time frames in conjunction with the 4 hour charts.

Inserted Video
Emotion - it steals your money.
  • #508
  • Aug 12, 2019 10:49am Aug 12, 2019 10:49am
Quoting TheSpoof
TRADING TIP Hey guys...I notice that there are people bouncing back and forth between my journal and RH's original thread. I am going to ask you guys that are doing this to really make sure you are not just confusing yourselves with too much information and bouncing around between various ways to trade these methods. It is no different than system hopping and is doing you no good. All of us have different trading experiences and perceptions of the market and thus will trade the very same methodologies differently - sometimes radically. At some point...
Hi TS, thx you for your concern

Personally, i do take notes about the differences for EP, either a bar earlier or a bar later (haven't seen cases where there are 2 different bars, maybe my sample is too small, but even then more likely the bar will be the 4th bar, not a criteria to EP) due to the absence of crossing of hull ma and 5ema shift 2.. moreover, TS system if followed strictly is 'better', or should i say stricter in EP, such that prevents late entry as only the 1st/2nd bar for EP can be taken, while RH till 3rd bar.

And when i re-visited my past 20 trades, very few cases (only 1 or 2 out of 20) where trading without 5 ema shift 2, usually gives an earlier entry, but nevertheless as you mentioned about the momentum which is definitely more important, hull is still unclear..

The real difference is the variation continuation where hull criteria is not met and trades were entered in RH, which can somehow or someway shows that hull ma is relatively less important than momentum due to continuation trades which definitely has to satisfy the momentum criteria (smTMMS oscillator) and since it is a continuation trade, the momentum more likely than not, will be stronger. Again, as seen in the screenshot, 5ema shift 2 doesn't play a part... hull plays more... but still less than momentum..

But nevertheless what saves the day is the shaving off SL (which i still used trailing 2 bar back high/low and in cases where PA doesnt move then combine with PSAR, or sometimes PSAR isn't there to assist especially like now in NC trade, so i rely on the changed of 3 criteria to exit trade without emotion, furthermore, i can say with confidence that the changed of 3 criterias really helped me a lot, if not, i will get worse SL, and undecisive or worse not consistant in exiting the trades..) and lastly as you always mentioned, trading discipline by following the trade plan, gets easier as more trades have been taken..

oh i still like 2R for reward... my heart is not as strong as TS n RH... it is already a struggle to wait for 2R...lol..

And frankly, i will stick to the 6/7 criterias and that particular variation continuation trade(screenshot attached that shows 2 examples), if it appears, it happens more often than not, that it gives a better EP.. yup, not going to use the new hull trend indicator, the system is not broken, and making too many changes is bad, i'm still a newbie in this system. I totally like your attitude, the way you think, that even though hull is unclear, it is still there as mentioned in posts until you are really sure

Lastly, there are many good positive posts on trading psychology here, almost every other day, short but powerful, and that keeps reminding me the importance of trading discipline again n again, really not easy to overcome.. lol.. As stated in your posts, components of a winning system is more about psychology and money management..
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  • #509
  • Aug 12, 2019 12:08pm Aug 12, 2019 12:08pm
May I know the method to trail using PSAR?? Or any EA provided?
  • #510
  • Aug 12, 2019 1:52pm Aug 12, 2019 1:52pm
Quoting Jefflee
May I know the method to trail using PSAR?? Or any EA provided?
I manually move my stop to the parabolic SAR above the current candle. I don't want an EA doing my work for me...sometimes I don't move my stop based on how I am reading the market.
Emotion - it steals your money.
  • #511
  • Aug 12, 2019 2:06pm Aug 12, 2019 2:06pm
ON MULTIPLE POSITIONS

"There is one kind of exit that is designed to get rid of losses, but it totally goes against the golden rule of trading, which, as we’ve said, is to cut your losses short and let your profits run. Instead, this exit produces large losses and small profits. It is one in which you enter the market with a large position size and then scale out with various exits. For example, you might start with 300 shares and sell 100 of them when you can break even on all 300 shares. You might then sell another 100 shares at a $500 profit and keep the last 100 shares for a huge profit. Short-term traders use this type of strategy frequently. On a gut level, this sort of trading makes sense because you seem to be “insuring” your profits. But if you step back from this sort of exit and really study it, you’ll see how dangerous this type of trading is. What you are actually doing with this sort of exit is practicing the reverse of the golden rule of trading. You are making sure that you will have multiple positions when you take your largest losses. In our example, you’d lose on all 300 shares. You are also making sure that you only have a minimal-sized position when you make your largest gains—100 shares in our example. It’s the perfect method for people with a strong bias to be right, but it doesn’t optimize profits or even guarantee profits. Does it make sense now? If it doesn’t make sense to you why you should avoid this sort of trading, work out the numbers. Imagine that you only take either a full loss or a full profit. Look at your past trades and determine how much of a difference this sort of trading would have made. In almost every instance when I’ve asked clients to do this, they become totally amazed at how much money they would have made holding on to a full position."

~Trade Your Way to Financial Freedom
Emotion - it steals your money.
  • #512
  • Aug 12, 2019 2:39pm Aug 12, 2019 2:39pm
FIX YOURSELF

"The most astute traders and investors are the ones who learn this lesson early. They are always looking to themselves to correct mistakes. This means they will eventually clear out the psychological issues that prevent them from making a lot of money. As a result, they will also continue to profit from their mistakes. Thus, my first advice to anyone is to look to yourself as the source of everything that happens in your life. What are the common patterns, and how can you fix the ones that aren’t working well? When you do this, your chances of success go up dramatically. Suddenly, you are in charge of your life."

~ Trade Your Way to Financial Freedom
Emotion - it steals your money.
  • #513
  • Aug 12, 2019 3:37pm Aug 12, 2019 3:37pm
Open trades EUR/JPY moved SL to .5 R Sell trade
EUR/AUD SL moved to BE Buy Trade
AUD/USD doing nothing sell trade
S&P 500 sell moving in right direction
Eur/Usd loss of 1R should have passed as candle before entry was too big.
I have been trading shorter time frames in the past and today it was so hard to resist closing some of the trades that had reached I R and then started to pull back but I believe in the method and as I live in NZ am getting more sleep. Alarm set for 1am and 5 am to check charts.
  • #514
  • Aug 12, 2019 3:49pm Aug 12, 2019 3:49pm
Quoting TheSpoof
{quote} Answer 1: I move my stop manually and generally follow the parabolic SAR. For August I am attempting to do the same thing and lock in R multiples as the trade moves but the trick is when to do that so you don't get taken out too soon because of a small pullback. I haven't figured out a fool proof way to do that and I don't think there is. The best way perhaps is to just get stop moved to break even as soon as reasonably possible and then let the indicators tell me when to get out......
Thank you for sharing and giving some perspective. Much appreciated.
The more you learn, the more you see
  • #515
  • Aug 12, 2019 4:03pm Aug 12, 2019 4:03pm
Quoting Ibar51
Open trades EUR/JPY moved SL to .5 R Sell trade EUR/AUD SL moved to BE Buy Trade AUD/USD doing nothing sell trade S&P 500 sell moving in right direction Eur/Usd loss of 1R should have passed as candle before entry was too big. I have been trading shorter time frames in the past and today it was so hard to resist closing some of the trades that had reached I R and then started to pull back but I believe in the method and as I live in NZ am getting more sleep. Alarm set for 1am and 5 am to check charts.
EURUSD is a sideways mess at the moment. The range will break eventually but when, which direction and how far is anyone's guess. Off to another slow start to the trading week. I guess this is what August trading gives us
Emotion - it steals your money.
  • #516
  • Aug 12, 2019 4:08pm Aug 12, 2019 4:08pm
I'm currently short USDJPY and AUDJPY. Stop is moved to 50% risk on AUDJPY via the parabolic SAR with price just stalled at 1R profit level for the last three candles and USDJPY is still at full 1R stop presently in a small loss. I may close out the USDJPY trade if the next candle doesn't close down and out of a losing position. Again, these trade when successful (generally) go right away in our favour. I'll be fine cutting this off short and re-entering if the opportunity presents itself.
Emotion - it steals your money.
  • #517
  • Aug 12, 2019 4:12pm Aug 12, 2019 4:12pm
Quoting TheSpoof
I'm currently short USDJPY and AUDJPY. Stop is moved to 50% risk on AUDJPY via the parabolic SAR and USDJPY is still at full 1R stop.
would you mind sharing your entries for those trades with us !?
by looking at it - wasn't the entry a bit late due to the TMMS Osci lagging behind ?
Just curious...
  • #518
  • Edited 4:39pm Aug 12, 2019 4:19pm | Edited 4:39pm
Quoting mtacki
{quote} would you mind sharing your entries for those trades with us !? by looking at it - wasn't the entry a bit late due to the TMMS Osci lagging behind ? Just curious...
AUDJPY was taken on the 3rd red candle when the oscillator confirmed and the HULL was down and red so it is an OK trade - not optimal, but OK. The USDJPY is a different entry method that I use but haven't shared.
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Emotion - it steals your money.
  • #519
  • Aug 12, 2019 4:22pm Aug 12, 2019 4:22pm
No new trades for me today. Closed one from last week. +.42 R
  • #520
  • Aug 12, 2019 4:25pm Aug 12, 2019 4:25pm
Quoting Bleemus
No new trades for me today. Closed one from last week. +.42 R
Closed manually or trailing stop?
Emotion - it steals your money.
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