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DanUK Trend Trading Journal 2010

  • #221
  • Mar 23, 2010 8:57pm Mar 23, 2010 8:57pm
Hi Dan, just popped in to see what your up too. Good to see your still going strong mate.
  • #222
  • Mar 24, 2010 12:06am Mar 24, 2010 12:06am
Quoting DanUK
Hi guys,

Some inspiration was drawn from BWILC but I don't want to discuss that too much due to copyright issues that seem to affect threads (feel free to PM me though if you want).

Regards,

Dan
What is BWILC? So now you are trading using 2 methods which is using smaller TF (H4) and larger TF (D1)?
wow..2500 profit.. for only 3 months? That really amazing..
  • #223
  • Mar 24, 2010 4:45am Mar 24, 2010 4:45am
Hi Dan.
Makes perfect sense. As always, thanks for sharing. Look forward to reading your summary/charts.
Cheers
Mitch

Quoting DanUK
Hi Mitch,

It came about towards the end of last year; after having our second child and moving to our new home I found that I had less and less time (and inclination) to study/analyse charts and with an increasing work load I had less and less time to babysit trades! I therefore decided I needed something a little more long term but I still wanted to make a considerable return on my money.

So, at the start of the year (2010) I opened a separate (smaller) account to start trading dailies. My method is...
  • #224
  • Edited 6:40pm Mar 24, 2010 4:58am | Edited 6:40pm
Quoting carrot_yuli
What is BWILC? So now you are trading using 2 methods which is using smaller TF (H4) and larger TF (D1)?
wow..2500 profit.. for only 3 months? That really amazing..
Bird Watching in Lion Country.
  • #225
  • Mar 24, 2010 6:26am Mar 24, 2010 6:26am
Hi guys,

The mention of Bird Watching in Lion Country has caused a flood of PM's and requests for info... it was probably my fault for saying "pm me if you want"! Lol!

Anyway, i just want to clarify a couple of points quickly:

1. My strategy is not based on BWILC... so let's not discuss it here please.

2. I didn't finish reading the book... it was recommended to me and I skimmed through it. What I did read seemed to make sense but I can neither endorse or criticize the book as I really didn't read it!!!

3. Please do not post any links to the book or other threads etc... it is a commercial product and I don't want my journal ending up in the bin!!

Thanks & regards,

Dan
  • #226
  • Mar 24, 2010 8:47am Mar 24, 2010 8:47am
Gotta ask, occupation, Dance Commander?? Am I the only one to ask?
Great Thread!!!

generalz
  • #227
  • Mar 24, 2010 9:37am Mar 24, 2010 9:37am
Quoting generalz
Gotta ask, occupation, Dance Commander?? Am I the only one to ask?
Great Thread!!!

generalz
Lol! Actually you are the first to ask...
Attached Image
  • #228
  • Mar 24, 2010 10:00am Mar 24, 2010 10:00am
Avatar updated!



I went to the store to get more
Fire... to start the war
  • #229
  • Mar 24, 2010 10:42am Mar 24, 2010 10:42am
Thats how i essentially do it on the dailies Dan. Im hanging on the the euro adding on the way . PLanning to add on the retest of the 1.3440 area. Only difference is i get out quick if it goes against me on my intial entry or on my subsequent entries. Then i let the market pick me up on the way back down, like you normally do on the 4hr. Actually i was debating that for a while if to get in at the point i think its going to turn or leave a stop order entry below the market and let it pick me up on the way down. Your method helped sway me in my decision, plus its a safer more conservative entry so at least the market is going in my direction


Quoting DanUK
Hi Mitch,

It came about towards the end of last year; after having our second child and moving to our new home I found that I had less and less time (and inclination) to study/analyse charts and with an increasing work load I had less and less time to babysit trades! I therefore decided I needed something a little more long term but I still wanted to make a considerable return on my money.

So, at the start of the year (2010) I opened a separate (smaller) account to start trading dailies. My method is...
  • #230
  • Mar 24, 2010 10:56am Mar 24, 2010 10:56am
there is a forex commentator called ashraf laidi who has 1.32 for euro this year. i am not in any euro short, but am in usdchf long so lets hope it falls

Quoting bboyomega83
Thats how i essentially do it on the dailies Dan. Im hanging on the the euro adding on the way . PLanning to add on the retest of the 1.3440 area. Only difference is i get out quick if it goes against me on my intial entry or on my subsequent entries. Then i let the market pick me up on the way back down, like you normally do on the 4hr. Actually i was debating that for a while if to get in at the point i think its going to turn or leave a stop order entry below the market and let it pick me up on the way down. Your method helped sway me in my decision,...
  • #231
  • Mar 24, 2010 11:02am Mar 24, 2010 11:02am
Quoting DanUK
Lol! Actually you are the first to ask...

You have been waiting all the time for some fool to ask, I knew it

Great Thread,
I am a previous Jacko Blog member...The fundamentals are not my cup of tea. I like your technical approach that is very consistant and profitable as is Jacko's fund. approach.

Waiting for your summary using dailies...

Keep up the good work

generalz
  • #232
  • Mar 24, 2010 11:26am Mar 24, 2010 11:26am
Quoting coolshades
there is a forex commentator called ashraf laidi who has 1.32 for euro this year. i am not in any euro short, but am in usdchf long so lets hope it falls

my personal opinion is that it would break below 1.30 and most likely will hit 1.20 before the end of this year. but im just following this market as of now and waiting for it to break my daily trendline
  • #233
  • Mar 24, 2010 3:28pm Mar 24, 2010 3:28pm
Daily Trading Summary

Here is a brief summary of how I am trading the daily charts:

Step 1 – Key Support & Resistance Levels

In my opinion horizontal support and resistance levels are the key to the market. These are the levels where the big boys are buying and selling and that should interest us, the retail trader.

The first step is to identify the nearby key levels of support and resistance that may be of use to us. We are not looking to map every single level but we want to highlight the important levels that could be a useful place to enter or a barrier to a trade.

These levels are not always to the pip levels – they will often show as a range.

For an example of what I consider a key level, plot 1.3850 on a EUR/USD chart.

Step 2 – Defining The Trend

I am only interested in trading support and resistance levels in the direction of the prevailing trend.

In order to define the trend we must first zoom out as far as possible. It should be clear which way price is going. If it isn’t then it is probably not worth trading!

In an uptrend, each major swing should make a higher high followed by a retracement making a higher low. In a downtrend, each major swing should make a lower low followed by a retracement making a lower high.

By drawing a trendline (or sometimes more than one) across the highs and the lows of our chart we should also get some idea about the trend.

It is also important to zoom out to weekly and monthly charts to get a better understanding of where we are in the big picture.

Step 3 – Placing A Trade

So we know the trend and we know where we are going to trade from (i.e. the key levels) – all we need to do now is wait for price to retrace to one of the key levels.

Let’s assume we are in a downtrend. On most occasions I will place a sell limit order at the level. If however I am uncertain about the trade for some reason (perhaps we have moved a long way from our trendline and anticipate a deeper correction) then I will watch price action at the level. If price blows through the level I will let it go and wait for price to move up to the next level or wait for price to get back below the level. Alternatively if price struggles to get through the level, or forms some kind of candlestick pattern (shooting star, engulfing bars etc) I will look to trade below the level. Vice versa in an uptrend.

Step 4 – Trade Management

This is where my style has changed somewhat and is the most subjective part of the method.

When I place an order, I will not put a default stop loss of “X” number of pips. Again, let’s assume we are in a downtrend. My hard stop will be placed above the trendline and above a recent swing high. It will be placed somewhere I don’t expect it to get hit unless something terrible happens (global disaster!). This is my emergency stop loss… it’s just good practice in the event that I can’t get to my trade station or broker for some reason.

If a trade moves against me I will likely stop the trade before my emergency stop loss gets hit. I will be watching price and how it reacts to the trendline and support and resistance levels. If it is blowing through them against my perceived trend direction I will close the trade.

If the trade moves in profit I will simply let it run. Then when we get to another level I will be looking to add another position and so on.

I will eventually move my emergency stop loss but again it will be a “worst case scenario”. I will look to close my trades if the trend appears to be changing or if we have moved sharply away from the trendline and a deep correction would eat up a lot of profit – in this case I will look to close my trades and the point that maximises profit from open positive positions and minimises loss from open negative positions.


Regards,

Dan
  • #234
  • Mar 24, 2010 4:26pm Mar 24, 2010 4:26pm
Thanks for explaining your method changes Dan, can you post some charts showing your entry and when you have added to the position i.e. your current eurusd & gbpusd trades? I think a picture paints a thousand words.

All the best and thanks again for all your help.



Quoting DanUK
Daily Trading Summary

Here is a brief summary of how I am trading the daily charts:

Step 1 – Key Support & Resistance Levels

In my opinion horizontal support and resistance levels are the key to the market. These are the levels where the big boys are buying and selling and that should interest us, the retail trader.

[color=black][font=Verdana]The first step is to identify the nearby key levels of support and resistance that may...
  • #235
  • Mar 24, 2010 4:58pm Mar 24, 2010 4:58pm
Quoting bez3000
Thanks for explaining your method changes Dan, can you post some charts showing your entry and when you have added to the position i.e. your current eurusd & gbpusd trades? I think a picture paints a thousand words.

All the best and thanks again for all your help.
No problem... one E/U chart attached; I have highlighted the s/r levels used to trade from.

Regards,

Dan
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD_Daily_2010-03-24.png Size: 31 KB
  • #236
  • Mar 24, 2010 5:14pm Mar 24, 2010 5:14pm
what would signify a trend change? for eg on euro?

Quoting DanUK
No problem... one E/U chart attached; I have highlighted the s/r levels used to trade from.

Regards,

Dan
  • #237
  • Mar 24, 2010 5:40pm Mar 24, 2010 5:40pm
Quoting coolshades
what would signify a trend change? for eg on euro?
Same as always... I define a trend using a trendline, a series of higher/lower highs/lows and key levels of support and resistance.

A trend change (so far as bias is concerned) takes place when these break down.

Regards,

Dan
  • #238
  • Mar 24, 2010 5:43pm Mar 24, 2010 5:43pm
I forgot to mention E/U... price would have to break above 1.3500 and then 1.3800 before I would consider a trend change (as things stand at the moment).

1.3500 would be the warning sign; time to liquidate positions. 1.3800 would be the first practical trade long.
  • #239
  • Mar 24, 2010 5:47pm Mar 24, 2010 5:47pm
yes this is what i was getting at. at what point would you start closing your positions...

i would say that this method is not necessarily for those new on the forex journey, though ofcourse every one has to find their own equilibrium.

Quoting DanUK
I forgot to mention E/U... price would have to break above 1.3500 and then 1.3800 before I would consider a trend change (as things stand at the moment).

1.3500 would be the warning sign; time to liquidate positions. 1.3800 would be the first practical trade long.
  • #240
  • Mar 24, 2010 6:03pm Mar 24, 2010 6:03pm
Hi Dan. Just a couple of points of clarification.
In terms of identifying key horizontal S&R levels, apart from daily TL, do you still use/consider things like 50% retrace levels? If so, I take it you are only concerned with daily swings or would you still look at H4 swing for example to look for possible further entry points?
Thanks for sharing.
ps. seriously, what does a dance commander do?
Cheers
Mitch
Quoting DanUK
Daily Trading Summary

Here is a brief summary of how I am trading the daily charts:

Step 1 – Key Support & Resistance Levels

In my opinion horizontal support and resistance levels are the key to the market. These are the levels where the big boys are buying and selling and that should interest us, the retail trader.

[color=black][font=Verdana]The first step is to identify the nearby key levels of support and resistance that may...
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