Howdy folks,
I've found this site to be a wealth of knowledge, so I've decided to try my hand at a journal. I've been trading a live mini account since 8 Dec 2006, starting on an end of day (24 hour) chart and then moving to a five minute chart. Due partly to not being able to get home on time to trade the most volatile periods, I've decided to go back to my 24 hour charts.
I use a 4 hour chart to set risk and to enter into highly trending markets. The only indicators I use are a 20 period simple moving average (20MA)and a 3 (3,1,50,50 are the settings) period fast stochastic. The rest is reading what the bars do and having a comprehensive set of rules to deturmine when the market is in congestion or over extended.
For the end of day chart the 20MA is the secondary indicator for entry into the market, and is the one I usually use. I look out for a pattern of trend swings to look for something to overide the 20MA and trade in the opposite direction.
The intra day charts use the 20MA as the primary indicator and use the modified Stochastic to help deturmine entry points, but not direction.
I will be entering in with three contracts at a time, each with it's own exit rules. The first (C1) has a limit of double the risk, the second (C2) uses a manual trailing stop and the third (C3) stays at break even until I see a signal to trade in the opposite direction.
I don't pyramid, ie add in more contracts, but If one or more contracts stops out I will seek to replace it if a signal comes up.
I trade on EUR/USD, USD/JPY, AUD/USD & GPY/USD. This is in approximate order of preference but If I see multiple entries then I'll chose the one that looks best. Once I'm at break even on one trade, then I'll look for entry points in another pair.
I enter break even as soon as my rules allow, it is better to reduce risk so I can play again another day. Also, once at break even I am no longer risking my capital and I can enter another trade on a different pair.
Trade #1
EUR/USD: is too close to a resistance line of 1.3452.
USD/JPY: long
C1: Enter at 119.41, stop at 119.22, sell at 119.79
C2: Enter at 119.41
C3: Enter at 119.41
AUD/USD: has just left over extension and is okay to go long on.
GBP/USD: is okay to go long on, although I suspect it wouldn't trigger.
EDIT: The above numbers include a 3 pip spread, the actual entry is at 119.38
I've found this site to be a wealth of knowledge, so I've decided to try my hand at a journal. I've been trading a live mini account since 8 Dec 2006, starting on an end of day (24 hour) chart and then moving to a five minute chart. Due partly to not being able to get home on time to trade the most volatile periods, I've decided to go back to my 24 hour charts.
I use a 4 hour chart to set risk and to enter into highly trending markets. The only indicators I use are a 20 period simple moving average (20MA)and a 3 (3,1,50,50 are the settings) period fast stochastic. The rest is reading what the bars do and having a comprehensive set of rules to deturmine when the market is in congestion or over extended.
For the end of day chart the 20MA is the secondary indicator for entry into the market, and is the one I usually use. I look out for a pattern of trend swings to look for something to overide the 20MA and trade in the opposite direction.
The intra day charts use the 20MA as the primary indicator and use the modified Stochastic to help deturmine entry points, but not direction.
I will be entering in with three contracts at a time, each with it's own exit rules. The first (C1) has a limit of double the risk, the second (C2) uses a manual trailing stop and the third (C3) stays at break even until I see a signal to trade in the opposite direction.
I don't pyramid, ie add in more contracts, but If one or more contracts stops out I will seek to replace it if a signal comes up.
I trade on EUR/USD, USD/JPY, AUD/USD & GPY/USD. This is in approximate order of preference but If I see multiple entries then I'll chose the one that looks best. Once I'm at break even on one trade, then I'll look for entry points in another pair.
I enter break even as soon as my rules allow, it is better to reduce risk so I can play again another day. Also, once at break even I am no longer risking my capital and I can enter another trade on a different pair.
Trade #1
EUR/USD: is too close to a resistance line of 1.3452.
USD/JPY: long
C1: Enter at 119.41, stop at 119.22, sell at 119.79
C2: Enter at 119.41
C3: Enter at 119.41
AUD/USD: has just left over extension and is okay to go long on.
GBP/USD: is okay to go long on, although I suspect it wouldn't trigger.
EDIT: The above numbers include a 3 pip spread, the actual entry is at 119.38