Let's see how this thing works

GO TO POST #89 PAGE 6 FOR THE NEW STRATEGY


Hi everybody, this thread will talk about my new trading system, I already have a medium long term working greatly where money management is king and it helps me to stay consistent.
But as every medium term swing/trend follower in some period it takes time to see profit. So I decided to develop a new one where the win % will be high while my RR will be 0.5, in this way I will take profit early and I’ll avoid the usual trend followers problems. I can’t demoing my system because without real money I don’t feel the same emotions than live trading! so with this journal I’ll have to show my trades and my emotions will be similar to the live account
About my system:
I will open my trades (only on Eur/Usd) using all my timeframes, starting from daily looking for resistance area, trend lines ecc… going to lower timeframes, I’ll try to take the profit I need, opening and closing will be a little discretionary (tape reading) but I will try to give best explanation of my analysis so everybody will be able to learn something, and hopefully I’ll be able to learn something from you too. I’ll try to write all my trade live, but sometimes I’ll don’t have time so I’ll write after the session.
Money Management
I use a super strict money management I really hate big drawdowns so I try to don’t lose more then 10% (never reached that level, my Max DD so far has been 7%), a 10% DD would probably worry me a lot leading to errors… so I place a 0.5% of my account on every trade and I try to earn a 0.25%.

If you don't want to lose more than 10% of your account to drawdown, why not put 80% of your account in a bank CD instead of letting it sit there doing nothing.

Let's get started!!

I decided to risk 10000$ (obviously not real)
I'll place only a 0.5% a trade, and i'll compound it every day.

That is a good idea! I never tought about it... Will take some info
Thanks!!

I was forgetting to say something important... I'll don't trade very often, 3-4 times a day, some days i don't trade at all! i try to catch the best setups and earn my 0.25% at a time.
Patience is important as anithing else.

One more thing, sorry for my english!!!

Ok first trade in!
Long @ 1.2608
SL 1.2563 area
Tp area: 1.2622

Long @ 1.2608
SL 1.2563 area
Tp area: 1.2622

Hey comeon to take 14 pips as profit you make 45 pips as stop lose !!!!

yep you're right, i placed a wrong SL here on FF, sorry for that...
need a little practice to place trades here eh eh...
so SL was 1.2575 and it's already been hitted...

So first trade:
Lost 0.5%
will see second trade

Do you trade the news? If not, maybe it was not a good idea to place a trade in the middle of news time...

lookind to go short around 1.2595 area

I usually don't look at news, just the big ones on USD, but usually I don't.
I think my trade hitted Sl not because of the news, didn't see more volatility or big moves during that time.
I try to open trades around important area and usually it goes straight to the TP or vise versa straight to the SL...

Thanks a lot for the advice, maybe I'll keep a closer look to news next time!

Just to say a little how I determine to take a trade or not

Let's start from daily chart. The yesterday low has been near the 1.2500 area It bounced from there and went up to the 1.2760 during the night it went down again and at the 8:00 candle it created a spike, so i decided to look for a retracement after the night fall, bought at 1.2608 it went down hitted my Sl and then the retracement started ...
Not a big problem, happens! the entry area was good and the SL probably too tight, but i don't care cause i don't wanto to place it too far away...
Now i'm waiting to see if it goes down again, in that case it should go down to the 8:00 low or even lower (but i don't care, i just want my TP to be hitted).
Why do i always say area? because i look at price action that i can see at the moment if i decided to place my TP to a certain level i'll look at the price and see if at that lvl price starts to retrace or goes higher, in that way i can catch more pips, and believe me after 1 year of trading they can make the difference between a regular system or a great system.

This time it was an easy one...

Short @ 1.2595
TP 1.2577
SL 1.2626

So today i'm -0.25%, let's see the third trade

Ok, I'm still short, look to get in @ 1.2602

Sorry if i'm late but i couldn't post on FF for a couple of days...
So let's see what happened:
Friday i ended up with a 0.75% loss
Monday i did just one trade and it was a win for a +0.25%
Today i made a trade this morning for a +0.25%, and i'm still waiting for a new setup.

What i discovered in those 3 days is that i'm leaving many many pips on the table, if i would have tried to exit differently probably now i would be in a much better position with a good +1-2% (in three days, not bad...)

Another thing that i discovered is that probably i'm a good swing/trend trader and not a quick but small gain trader...

So i'm not going to change the rules, the system should work good, but i'm not in the right mood with it, in other words the system is ok i'm the problem!!! but i'll implement a second system using the same entry point with a different exit management and I'll see which one fit the best with my personality!

I' m still waiting for a seconnd setup....

Went short and earned my 0.25% with the first that I'll call system A
same entry point with second system (B) tried to ride the swing... ended with a +0.12% not much but better then nothing...

Now i'm looking to go long around @ 1.2773

position opened long @ 1.2773

SYS A SL:1.2718 TP 1.2799

SYS B SL 1.2731 No TP will ride the swing!

Closed trade TP taken SYS A: +0.25%