Lusan Journal II

Look at this...
Who has the gut of going north with these charts?
Weekly falling
Daily falling
4H falling..
Who has the gut indeed?
I do not!

Am I addicted to forex trading?
I wonder....it looks like because
it is saturday and I am so eager of Sunday evening.
I have not posted my trades in this journals
for a while
and
it feels good by not doing it.
What am I doing?
Trading, trading, trading.
I am still changing.

This darn market is a real beast!
totally unpredictable: nothing works
but presence of mind and care.
Yes: no indicators, no pattern, nothing
but pure PA dance and trade management.

Now I trade from 7-10 am
and
from 5 to 11 pm.
Trading in the New York open is very hard
because I have no time for an extended war
-I have a part time job!-
Trading during the Tokyo session is really more relaxed:
Not darn news to dance around
and plenty of time for damage control.

How am I doing?
Ok, I am just breaking even.
and I am happy with it:
still learning...
-well...I am actually doing better than breaking even
but considering the potential, my % are just better
than money in the bank. But I do not care.
I guess I am so stupid and terrible trader
that it will take a while before I become a pro.

They say that 95 % are destroyed in forex.
5 % make it. So I am patient and taking it very
very very slowly. Maybe 5 years before I
going ballistic with a total full account.
Where am I?
I am still alive, P/L is even and still in love with it.

By the way, I am doing some studies of the
1D single bar charts -because of one of the many fti's lessons.-
fti?
who is this guy?
I do not know but I cannot let go of the little that I learned from TAF.
It is embedded within each of my trades.
Whenever I deviate too far from his teaching I get smacked
and then it takes a while before I return
to my middle ground.

Oh well...today is saturday...Now I have to wait until sunday evening
to start trading...probably selling Euro...but it will depend of what happens.

Cheers.

Hi, Lusan:

Welcome back. The only things I can suggest to you are

1. Forget about rescues. The rescues do not make sense. If you have a temporary small loss, say, -20~50 pips loss, it just added risk if you added to losers, and you will have positive pips very soon if the loss is only temparary. If the loss is big, say -100 pips. Maybe you are wrong with the present trend. And if you cut loss early and flipped, you would have made more profit to rescue the loss already. If I have a loss, AND PA tells me I am wrong with the present trend(5M), I will cut and stay out of the market first. So I have more choices either buy back with a better timing or reverse trading direction. That is what I am doing, and it doing very good.

2. Buy-and-hold (riding). You may try and back test, you will know how good it is. Of course, you hold only good positions not bad ones(with profit + with the trend). The 5M price movement is very complicated. No consitent rules to jump back if you lost the good positions. If it is proved a correction, it is not the reason to filp, and then there is no reason to close either (since you could open again).

That is my conclusion after 1.5 years losing of money.

Nice.
I am doing darn well with a long term mentality of the dance.
Fromn yesterday to this afternoon, I rode the whole thing...
no rescue...
Either
add to the winners
or
hold the winner until ATR or next level or momentum lost.

Agree...better to drop out than to rescue losing position...
Better to cut the losses early
than to risk the full house for a minor 0.5 % loss
Regards,
Luis

I just finished and interesting test around a these questions:
1. Can we actually rescue against 1H trend?
2. Can we dance while working and sleeping?
4. Can we use limit orders to help out?

The results are satisfactory but it is really not recommended because of the lousy sleep pattern to manage an overnight trading war.

Edit: yes. this works but what do I think about it? Do not bother with this extended rescues.
I think the best is to cut your losses early and flip.
That is something that I want to evaluate carefully in the coming days.
Yes...I have flipped many times and always succesfully...
but I never did it carefullyh and evaluated the risk, timing and advantage of the flip.

The questions:
1. When to flip?
2. What is the flipping size?
3. What are the risk of flipping?
4. What to do if I am wrong in my flip?
5. Best way to flip? Set up limit orders! of course.

Today I was caught on the 100 pips spike.
I took it as a great opportunity to test one of the rescue strategies.

All went well.
No losses, even though I was a little concerned because it is Friday and on failure of the final entry I would have to pull the plug.

The strategy looks like this

1. We have a scout losing by a lot of pips....80-90 pips and PA is near a S/R line.
2. Enter 1X rescue at the 15M fractal reversal
3. Adjust PT to break even
4. If PA does not make it to B/E, enter 2X at the next fractal reversal.
5. Adjust PT to break even
6. Set Surrender limit order just above the last fractal
7. Breath out and wait.

Today I did: (-1) and (-2.5)
Probably it would be better to start with a 2X rescue, with rescue skew: 2X and 3X. Why because for -100, 2X rescue would make to an average of -33..And that is a fibo reversal number.

If this strategy had failed and I had surrender, it would be losing 100 pips. Which is not catastrophic. The thing is too be patient and fearless.

Any way, it was fun. It works to perfection.

Good rescue...

no mistakes... no 50 pip multi flip etc...


V

I love it.
Finally I believe that I figure out and adapted the strategy to my own trading conditions. I just finished sketching out all the strategies that I already tested/implemented. By the way, I reentered a scout and I will test it over the weekend. Do not tell anyone. It is a test.

I am

A nice dance...so simple..
yes...done over the weekend...
Why?
1. 1D against TL---> Bouncing?
2. 25 pips foreign captial by Friday trading day end...> a nice buffer
3. A strategy test
4. a lesson in patiency

I entered too late...
I exited because of the legs length are getting shorter...so I took my profit and waited...until the next dance...why is on-going.

I continue exploring overnight trading and high time frame possibilities. Last weeks I have plenty of wins and no losses...the point is to go slow learning without emotional compulsion...it pays having a non-trading job at this time...I do not have to make a living from this...so I am in school!

I just concluded an extended rescue operation. Why didn't I keep the position opens? Because 1D looks pretty Euro bullish and I do not want to go against the trend. I exited but I did not reverse. I will pause until after tomorrow unemployment numbers.

What am I learning lately?

1. I just finished a quick statistical study and I convinced myself again that his market is really chaotic....that is good news...very good...nobody knows what the next bar will bring....so I play fti' strategy within the best of my abilities.

2. Be patient. I ran this rescue for more than 24 hours...yes...the capital is kept low...but I am building up...and I feel great learning my basics...

3. Fast dances? Very dangerous and not good for my mental health...I prefer this way of trading: get in...if winning, add more...If losing, wait 1 or 2 hours before attempting any rescue: eye on the levels...eye on the volatility...etc...but that is a long story...enough...

Hi luSan, I noticed your posts on fti's thread and just read your two threads. I am impressed that you have been documenting your trading in this manner, well done and it takes courage to put it out there on FF and open yourself to comments from newbies and pros alike. Keep up the good work and best of luck in your new job.

An extended rescue operation:

orders: -1-1-3-5+10
Results: minor damage but saved book

Why out?
Because to stay in shorting the Euro would be going against the trend...and that is a no-no..
why not long Euro? Because I must stop trading and go to work...
Why so quick out? no overstaying a rescue...and the story of god talking to the man on the roof.

cheers.

Rightly Used...

.

Not so hot of a week...
No trading on Monday...
A tough rescue on tuesday
Wed and Thursday...brought the book back into the black with some profit...oh well...
Of course...not trading on Friday.

Hi Lusan

Only just noticed your journals - they are both really informative and helpful..
Just spent several hours enjoying them..
Thanks for sharing your hard work..

Long may you and they continue..

Regards

great journal buddy love it!

Hi Lusan, I know you thru reading TFA thread, and respect you for going on to develop a style of your own based on Fti,s. ( correct me if I make a mistake). I am new to FF, and just want to share with people on the same journey. I have read about 100 page on the TFA thread. I got a brief idea of the thread. The thing I can most agree is the attack, because not having attacks sequence when the trade goes well is the reason my account is building up very slowly. But I am a bit reserved about the rescue thing. Rescues for me can easily lend me to revenge, and my unwanted trading partner - fear and greed. I might be wrong about this, and just hope that you can share your experience on this.

nice to know someone who have faith and determination to become a good trader like you


Fuman

ben10, Fuman, and Gdb, welcome to my cave.

No more trading this week...
my mindset is off due to an upcoming job interview this Thursday...
Guess what? If I trade tonight and tomorrow and something goes wrong, with my current MM I would be hanging around the computer until I resolve my crisis...which could be very difficult to do since I would travelling from Thursday to Monday...
so my mindset would be out of focus so...
no more trading this week...

Now here is a recap of this week so far...a good week full of action....
Gash...my trades are so odd...
no indicators...no trend analysis...pure MM and PA...
if someone asked me why I entered like this I would not be able to answer: it just looks right...so I do..
Oh well....the darn thing I learned from fti works like a charm...
God bless the man.