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Based on Trading Chaos 2nd . My journal.

  • #1
  • First Post: Jul 19, 2008 4:39pm Jul 19, 2008 4:39pm
I am not first time on market, I try different 'profit' systems, but all fails. I tried to 'catch' some pips without success or loose all that was won. Some time ago I tried Trading Chaos, based on "Trading Chaos 2nd edition" book by Bill Williams, but with some modifications, I think that I improve system using some additional filters, the profit was not regular, and I was not satisfied.

After that I took some pause, and did nothing by 2 month. I rested! And make a decision to try original system, without 'custom/optimization' features.

So let's start. Just with original Trading Chaos system.

-------------------

The basic rules.

Timeframe: Daily.


Used indicators:
Alligator
AO
Fractal

Main signals to open position:
1. Bearish/Bullish difvergence bar.
2. Third bar with tht same color of of Awesome Oscillator.
3. Fractal.

Money Management system: Backway pyramid.

Trading instruments: almost all futures, rarely currency pairs (I hate them ).

I will comment every my position.

A great occasion to test this system is contest that lasts 3 month. Demo account.
Starting Depo: $10 000
Start date: 15.07.2008
Software: MetaTrader
Login: 233614
Invest password: o0qiiyk
Server IP address: 216.93.180.133
Have a questions? Just PM me, I'll reply to everyone.
  • #2
  • Jul 19, 2008 4:42pm Jul 19, 2008 4:42pm
First position has been opened, but it reach the Stop Loss in near two hours. The orders were placed according to all rules. It is frustrating as price reach Stop Loss and goes back to where it should be, it was 4 points up to Stop Loss, wish I knew this and place it a little bit higher , but not. To show all beauty of the situation - take a picture of 5 mintes timeframe .

http://trading-chaos.at.ua/_nw/0/24430.gif

Selling SI at 18.660, Stop Loss at 19.280, lot 0.02 .

Position closed by Stop Loss, with -$62.20 to deposit.
Have a questions? Just PM me, I'll reply to everyone.
  • #3
  • Jul 19, 2008 4:45pm Jul 19, 2008 4:45pm
As of now I have 2 pending orders placed.

1. To buy Corn (ZC) at 663.25. Great signal bar, fine angulation.
3. To buy Natural Gas (QG) at 11.585. Yesterday it wents down (now price is 10.555) and maybe it will be better to terminate this order, but let it be.

I am monitoring other markets, but do not see any signals there.
Have a questions? Just PM me, I'll reply to everyone.
  • #4
  • Jul 22, 2008 12:02pm Jul 22, 2008 12:02pm
A few minutes ago pending order was activated and coffee was bought. The signal is very good, and it overwrites signal bar from previous day. The bulligh divergence signal bar is not so large, and that allows to set closer Stop Loss, and normal lot.

Buing KC at 138.50, Stop Loss 136.10, Lots 0.07.

http://trading-chaos.at.ua/_nw/0/47190.gif
Have a questions? Just PM me, I'll reply to everyone.
  • #5
  • Jul 22, 2008 12:04pm Jul 22, 2008 12:04pm
As system uses daily timeframe I will update this journal rarely, do not fear, I am always here .
Have a questions? Just PM me, I'll reply to everyone.
  • #6
  • Jul 23, 2008 7:02am Jul 23, 2008 7:02am
Hi, at the KC, I just stand Sales, trading on New Dimensions by Bill Wilyams. It's a very interesting system!
  • #7
  • Jul 23, 2008 1:13pm Jul 23, 2008 1:13pm
Quoting Linker
Hi, at the KC, I just stand Sales, trading on New Dimensions by Bill Wilyams. It's a very interesting system!
And what was the signals to sell KC ? Could you shed some light on it?
Thanks anyway for accessing my journal.
Have a questions? Just PM me, I'll reply to everyone.
  • #8
  • Jul 23, 2008 1:17pm Jul 23, 2008 1:17pm
Quoting someBody
A few minutes ago pending order was activated and coffee was bought. The signal is very good, and it overwrites signal bar from previous day. The bulligh divergence signal bar is not so large, and that allows to set closer Stop Loss, and normal lot.

Buing KC at 138.50, Stop Loss 136.10, Lots 0.07.

Today we had a gap and position was closed with Stop Loss, at 136.10, so -$63.70 to deposit.

Current balance: $9874.10

But todays bar has formed additional BUY signal, so tomorrow I need to place pending order again.
Have a questions? Just PM me, I'll reply to everyone.
  • #9
  • Jul 24, 2008 1:15am Jul 24, 2008 1:15am
Quoting someBody
And what was the signals to sell KC ? Could you shed some light on it?
Thanks anyway for accessing my journal.
signal to the sale was fractal (138.85) below the red line balance
  • #10
  • Jul 24, 2008 1:59am Jul 24, 2008 1:59am
Quoting Linker
signal to the sale was fractal (138.85) below the red line balance
Well, you are right, but 16.07.2008 was bullish divergence bar, that eliminates fractal, you had to cancel your pending order.

---
Currently I had 2 pending orders - to buy ZC, ZS. On market opening I will place additionally orders to buy KC and W.
Have a questions? Just PM me, I'll reply to everyone.
  • #11
  • Jul 24, 2008 2:25am Jul 24, 2008 2:25am
Quoting someBody
Well, you are right, but 16.07.2008 was bullish divergence bar, that eliminates fractal, you had to cancel your pending order.

---
Currently I had 2 pending orders - to buy ZC, ZS. On market opening I will place additionally orders to buy KC and W.
I agree if the trade for trade chaos 2, using turning bars. But in a way we never take the momentum entirely. Lots of false turning bars found on the trend.

But as I have said I am trading on New Dimensions. And I am not against of trade chaos 2.
  • #12
  • Jul 24, 2008 7:32am Jul 24, 2008 7:32am
And what type of pyramid you using? 1-5-4-3-2-1 or 1-3-2-1?
  • #13
  • Jul 24, 2008 12:04pm Jul 24, 2008 12:04pm
Quoting Linker
And what type of pyramid you using? 1-5-4-3-2-1 or 1-3-2-1?

I am using 1-5-4-3-2-1 pyramid, basically one of the point is to not loose more than ~$300 per position (per pyramid), so first stop loss is near ~$60 far away.
Have a questions? Just PM me, I'll reply to everyone.
  • #14
  • Jul 25, 2008 6:37am Jul 25, 2008 6:37am
One pending order has ben activated and White Sugar bought. We have a strong buy signal confirmed by 2 signal bars of bullish divergence. Six days ago there was a gap, but it should not take affect on our signals. Unfortunately I incorrectly calculated Stop Loss distance, and select a very small lot for this position, but it's not so critical.

Buying W at 355.8 , Stop Loss at 343.7, Lot 0.02

http://trading-chaos.at.ua/_nw/0/68102.gif
Have a questions? Just PM me, I'll reply to everyone.
  • #15
  • Jul 25, 2008 6:35pm Jul 25, 2008 6:35pm
The same instrument like before on bullish divergence bar signal, and incorrectly calculated lot size (too small).

Buying KC at 135.90, Stop Loss at 133.70, Lot 0.02.

http://trading-chaos.at.ua/_nw/0/23420.gif
Have a questions? Just PM me, I'll reply to everyone.
  • #16
  • Jul 31, 2008 1:02pm Jul 31, 2008 1:02pm
The pending order to buy soybeans has been bought. This is third signal on the same instrument, previuos has been eliminated, and this one is working.

Buying ZS at 1408.00, Stop Loss on 1347.00, lot 0.02 .

http://trading-chaos.at.ua/_nw/0/93709.gif
Have a questions? Just PM me, I'll reply to everyone.
  • #17
  • Jul 31, 2008 1:06pm Jul 31, 2008 1:06pm
Quoting someBody
One pending order has ben activated and White Sugar bought. We have a strong buy signal confirmed by 2 signal bars of bullish divergence. Six days ago there was a gap, but it should not take affect on our signals. Unfortunately I incorrectly calculated Stop Loss distance, and select a very small lot for this position, but it's not so critical.

Buying W at 355.8 , Stop Loss at 343.7, Lot 0.02
Today I have moved stop loss to 355.8, the price is far away from opened, but it's really bad that lot was so small. Also, today is third green bar on AO, so I will place additional buying order at the top of the todays bar.
Have a questions? Just PM me, I'll reply to everyone.
  • #18
  • Aug 1, 2008 7:19am Aug 1, 2008 7:19am
Today the additional position on white sugar has been activated, the signal is third green bar on AO. I have calculate correct lot now to not loose more than $200 , but lot is not maximum as the price is far now, and I am not 100% sure if it will go up again.

Buying W at 390.7, stop loss on 377.2, lot 0.28 .

http://trading-chaos.at.ua/_nw/0/31462.gif

On the picture you can see how it goes from the begining.
Have a questions? Just PM me, I'll reply to everyone.
  • #19
  • Aug 4, 2008 1:23am Aug 4, 2008 1:23am
Quoting someBody
The pending order to buy soybeans has been bought. This is third signal on the same instrument, previuos has been eliminated, and this one is working.

Buying ZS at 1408.00, Stop Loss on 1347.00, lot 0.02 .

http://trading-chaos.at.ua/_nw/0/93709.gif
The position has reached Stop Loss actually without going up. The loss is -$61.20
Have a questions? Just PM me, I'll reply to everyone.
  • #20
  • Sep 1, 2008 3:16pm Sep 1, 2008 3:16pm
First of all - old position has been closed on their stop loses, I was busy with additional project, completely not related to trading, so I even did not open terminal. But now - I am back, but with the same deposit .


What we see on the market:
- really strong signal to sell TRB (rubber), I will place pending order tomorrow. Do not need to calculate how far Stop Loss should be placed, as most probably will need to catch up already started trend.
- great position on ZC (corn), there can be placed to position, one to sell on bearish divergence bar, and the second to buy on fractal.


I am attaching picture from TRB.
Attached Image (click to enlarge)
Click to Enlarge Name: trb01.gif Size: 8 KB
Have a questions? Just PM me, I'll reply to everyone.
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