I am learning a lot from Van Tharp's book 'trading to your financial freedom'
One of the things that he mentioned was that we approach the market with some bias. This definitely comes from where we begin our education on forex.
Basically when we come to creating our trading systems, we assume certain behaviors about the market.This is when I realize my assumption in regards to my trading system
My system is basically a swing trend trading system.When when I look at the way I trade and my results so far, I am beginning to realize that my system only works well when there is a smooth clear direction in trend.
However, from my data, I see that trends often do not move in consecutive highs or lows. There's always some corrections to the trend. So my system would take me out whenever I hit those corrections. This is fine but when we approach market conditions with many corrections, I would often experience many losses even when the general trend is going my way.
So with this new insight, I would definitely try to implement a technical position trading (only in the direction of carry trade) along with my swing system. Pyramid is definitely still in play. Since this position trading will take a long time to realize, I will only hold positions in the direction of the carry trade so that I wouldn't have interest deductions waiting for the trend to develop. I'm gonna open a separate account for my position trading.
I believe that when I enter into a jagged market conditions my losses in my swing system can be offset by my position trades. The number one thing I am going to think about in the future is to determine my s/l procedures in position trading and when to add positions.
One of the things that he mentioned was that we approach the market with some bias. This definitely comes from where we begin our education on forex.
Basically when we come to creating our trading systems, we assume certain behaviors about the market.This is when I realize my assumption in regards to my trading system
My system is basically a swing trend trading system.When when I look at the way I trade and my results so far, I am beginning to realize that my system only works well when there is a smooth clear direction in trend.
However, from my data, I see that trends often do not move in consecutive highs or lows. There's always some corrections to the trend. So my system would take me out whenever I hit those corrections. This is fine but when we approach market conditions with many corrections, I would often experience many losses even when the general trend is going my way.
So with this new insight, I would definitely try to implement a technical position trading (only in the direction of carry trade) along with my swing system. Pyramid is definitely still in play. Since this position trading will take a long time to realize, I will only hold positions in the direction of the carry trade so that I wouldn't have interest deductions waiting for the trend to develop. I'm gonna open a separate account for my position trading.
I believe that when I enter into a jagged market conditions my losses in my swing system can be offset by my position trades. The number one thing I am going to think about in the future is to determine my s/l procedures in position trading and when to add positions.
