MagnumFreak's March Madness

Thought I might start a journal just for the month of March. Mainly to prove that forex trading can be a very profitable venture if you stick to the rules of whatever system you choose. Although I won't be able to reveal all of the details of the system I use (do to contractual obligations) you will be able to see the thought process, successes and failures of this system.

Journal rules:
1. This journal will officially begin March 3rd 2008 at midnight GMT and will end March 31st at midnight GMT.
2. At the end of this time period I will post my account statement showing all trades along with any withdrawals.
3. Trading will only be done on one of my live accounts.
4. The trade will occur and within 10 minutes I will update this journal. Updates will include charts that detail why each trade is being taken.

Trading rules:
1. ALL rules MUST be strictly adhered to, no exceptions.
2. Max number of lots is determined by size of stop and account balance at the time of first entry. This value will vary day to day and trade to trade depending on results.
3. Signal confirmation: Position entered if ALL rules agree.
4. Early Exit: Occasionally conditions will present themselves where trends will indicate possible early abnormal termination. An indicator that I have designed will signal on the chart with a skull and crossbones. At that time all positions will be closed. This rule is only in effect until the initial profit is taken, then stops are the only exit method.
5. Normal Exit: At 20 pips profit, 50% of the position will be closed. The remaining 50% will have the stop moved to 20 pips loss. In this way, the stop has been funded and no losses will occur. Stops will be adjusted depending on crosses of weekly, monthly and yearly pivots. Stop will be held at pivot prior to current cross to allow currency to move freely. Final exit will be on breach of this stop.
6. If a new signal develops for a currency pair and I am still in a trade for that pair, the signal is ignored. Signals are only valid for currency pairs not currently being traded.
7. Entry decisions will be based on the 15min timeframe.
8. All available currency pairs will be traded that are offered by my broker. This is to demonstrate that if a system is properly designed it will be universal throughout currency pairs.

Over the next few days as we get ready for the new month I will post some charts to show how the system operates.

Note: None of the indicators or the trading system are available for sale. There is also no EA for this system. Please do not ask for any of the indicators. If I use an off the shelf indicator I will attach it to the post with the first chart picture in it.


Disclaimer: None of my trading decisions should be considered advice or recommendations for you to use as trading decisions. This journal is merely a demonstration of a trading system that has been developed by myself and others and the power of consistent effort.

Hello Magnumfreak,

Just about shut down my Pc for the day and spotted your new journal on a last surf of FF.

Love the Idea of skull and crossbones appearing on your chart.

Anyway you caught my interest and I look forward to following your progress throughout the coming month.

Regards,

Wolf.

LOL! Yeah, I like to keep forex trading as fun as possible. You should see how some of my alerts read. LOL!

The skull and crossbones will show up if things just don't look right, not only on the current timeframe but on either of the next two higher timeframes. Doesn't always work out, but it is a safer way to trade.

Here is a screen shot from the eurjpy. Wherever you see the skull and crossbones show up you can see the trend ended either immediately or it continued for a little while and then reversed.

First trade of the week and......... I missed it. I wasn't near my tradestation when the signal came in. Oh well.

In the image attached, look at the red hand pointed down inside the colored box (I added the box, it is not part of the indicator). It is an excellent set up and a valid trade. It meets the criteria for a trade but again I missed it.

Criteria for a short:

1. Down signal indicated by a finger symbol pointing down.
2. All three lines on the middle indicator connected and headed down. Another valid entry is all three parallel and headed down.

You will also notice two blue fingers pointing up. These are not valid trades.

First one:
1. Look at the gap in the middle indicator (red line far above white and blue), this is an indication of a weak trend.

Second one:
1. Again large separation in the lines.
2. All lines are pointed down in the middle indicator.
3. Another signal of a weak trend is in the first indicator. Notice the zig zag motion of the white line. This is a signal of indicision between the buyers and sellers. Zig zag and sloping up or down is fine but parallel is weak.

Time to sit back and wait for another signal to come in.

New signal in on AudJPY, but unfortunately it is a no trade. In the highlighted area notice the blue up finger pointing up, but it is met with the skull and crossbones. This is an indication that the uptrend may reverse. Although nothing is 100% in forex my rule is no trade unless everything is where it needs to be.

First trade entry. This is off of a trend reversal indication. notice the red skull and crossbones in the pink shaded area. Two of the indicators from the bottom indicator have come together and are headed down. This is an indication the reversal has started. Also there has been a break and close below the trendline.

Entry at 204.58 first take profit of 20 pips has been set. 4 mini lots purchased 2 will come off at 204.38.

I do not use a metatrader broker for my trades so they won't show up on the screen.

that was quick!! First two lots off and stop moved to -20 from entry. This trade is now free to roam where it needs to go.

Here is where the psychology of forex gets interesting. It would have been very easy for me to just take profit when my last 2 mini's hit about 80 pips profit, but that is not how my trading methodology is setup. You then watch it bounce from 80+ pips profit to about 20 pips profit. Mentally you start questioning yourself, wondering if you should just get out and protect your little bit of profit and go on. But the little bit of experience I do have kicks in and I wait. Reward-- back to 50+ pips at this update just 5 minutes later. Frankfurt open and london open in a little while will push it around a bit then it will continue down. Watching for 202.07, there is a weekly and monthly pivot sitting there. Worst case scenario on this trade is I break even. Ok, no biggie.

Still waiting for more signals to get into other trades.

A signal in the reverse direction of my current trade has appeared. However, due to the large difference in the bottom indicator, I will not be closing the position (besides, it is one of the rules of my trading). News is coming up in a few minutes. Should be interesting to say the least. System is working nicely. Patience is the hardest part. Going to keep the stop back where it is now. If the news takes it out, oh well. No biggie. Better than a loss.

LOL! Stop triggered. Broke even. No biggie.

Nothing is setting up so far this evening. THink I will go take a little nap to get ready for the european session. Back in a few.