Gauranga's journal

0R

The most boring price action ever. Didn't like it from the start. Good decision to call it a day with a break-even.

Trade 1/1:

Hi,
My trade on EURUSD thus far

+3R

0R

+2.5R

+1.5R

Trade 1


Trade 2


+10R (DEMO)

Testing something new.
Won't be adding this to my total R's for the day.

+1.1R

Trade 1 - W


Trade 2 - BE

-1R

Never been happier with a losing day:

1. After a series of losing trades, I managed to stay calm and have faith in the strategy and statistics, so I managed to walk away with minimal loss.
2. Reviewing my trades and missed opportunities gave me great insights into the mistakes I made and what should I look for.

Added VMD indicator post-trading for analysis only. Didn't use it during trading.

1:3 RRR

Trade 1 - L

1. Bad decision on bias. Even though 10m MACD is weakening, it's above zero.
2. Look how we got a nice down move after zero cross to the downside. Should have waited for that.
3. VMD is going up too.

Trade 2 - BE

1. Same situation. 10m is up.
2. At least I should have waited for 2m to show weakness and pullback.
3. 2m VMD going up strongly.
4. I need to memorise these pictures.

MISSED OPPORTUNITY:

1. Since I had already decided to Sell, this should have been a trade.
2. 2m VMD (vwpd) is down.
3. 2m MACD has completed a full reset.

Trade 3 & 4 - L & L

1. HTF bias is good, but went against 30s (MTF) MACD.

Trade 5 - L

1. Same thing - I went against MTF MACD. Fast one has been showing divergence for some time. Slow one's has made a cross and starting to go in the opposite direction.

Trade 6 - W

1. Perfect trade. Everything is well aligned.

+1.5R

Overall, it was better not to trade today. Lots of news close to each other and a huge gap down right before the open.

The first trade was exactly according to the strategy, and the second was more intuitive, a counter HTF trade.

Trade 1 - L


Trade 2 - W

+10R

Back to EURUSD in parallel with MNQ.
Same method.
1:3 RRR

Trade 1
- London session


Trade 2-3
- New York session


Trade 4
- Manual exit at +2R


Trade 5
- MNQ trade

+2.8R

No EU today. Too much MNQ action.

+7R

1:4 RRR

+11R

+2.5R

1:3 RRR




+8R (DEMO)

+3R

From now on I will trade with a new template.
The same logic, but simpler and it seems more effective.
I think a fourth timeframe can be useful to add a level of statistical advantage, but with an RRR of 1:3 or 1:4, it may not be necessary at all.
The new template uses 2 screens (LTF: 5s and HTF: 1m), but because each has 2 MACD's, the slow MACD on the second screen is like having third screen/timeframe.
The difference between timeframes is 12X, and the difference between MACD's is 4X (the slow one is 4 times greater length than the fast one).
6 MACD Signal lines are an excellent tool for graphically showing the strengthening and weakening of momentum.
I will probably add a volume indicator.

looks good! hey, is it true that if you use multiple moving averages that it will make it more stable and provide better signals?

I don't know what's "true" and what's not. I can only expect, based on thorough testing, that something will happen more often than not.

In my experience so far, trading is a multidimensional thing and is never a matter of one indicator or several such as "multiple moving averages".

Maybe do your own research and see what that thing is that works more often than not.

I'm sorry I can't give a more satisfactory answer.

But with moving averages, I would look at them as multiple timeframes in one and apply the principle: A small price move on a higher timeframe is a large price move on a lower timeframe. Let the high RRR do the rest.

+5.7R

+4.5R

1:4 RRR

Trades 1-2
- Daily VP breakout with (some) reaction, expected it could go higher.
- Maybe naive of me as today is half-day market hours.


Trade 3
- Since it failed to follow through, expected a strong reaction within the profile.


Trade 4
- Manual exit at +2.5 when I saw a few bounces around Daily POC.
- Would hit +4 easily.


Conclusion:

1. If I hadn't used VP I would have done much better.
2. Maybe not to use VP or any other levels at all.
3. I'm following the momentum anyway, which is indicated by the MACD's.
4. Have faith in a solid RRR and a sufficient number of repetitions.