From nothing to Dust!

Constitution of Dust

Article I: General Trading Guideline
Section I: To be able to Trade for a Living

1. Item I: I am the type of person that would be happiest if I never had to leave my house except to visit or to shop. Trading will allow me to reach my goal of never having to leave my house to make a living.

Section II: To be able to Trade Multiple Time Frames with Multiple Pairs

1. Item 1: I know that if I am not in the market, I will not make any money. Because of this I am propelled to always want to have a trade open. The fact that if I am not in the market, I will no lose money seems not to concern me very much. Successfully trading Multiple Time Frames using Multiple Pairs will allow me the best oppurtunity to always have an open trade.

Section III: To Successfully Enter and Exit Trades as per my Trading Laws

1. Item I: It is important that I always follow the rules I have set for myself for entering or exiting a trade. If I do not I will be lost within that trade and will not know how to proceed.
2. Item II: If I do accidentally enter a trade as a result of straying from my entry strategies, I should close that trade immediately whether in profit or not to avoid any unneccesary damage to my account balance.

Section IV: To Never Chase Trades

1. Item 1: If I come to the party late and miss the exact trading point where I should enter the market, I will sit on the sidelines and wait for a new signal. By trading many pairs on many time frames, a new signal is sure to happen in a short period of time.
2. Item II: Having missed the exact entry it is also very risky to set a limit order where I would have liked to be in the market. I am advising myself to avoid using this option to still enter the market where I originally missed my entry price. Price may already be reversing to a new direction at the time my limit order would be triggered.

Section V: To Exit with a Profit and not get Greedy

1. Item I: It is important I avoid thinking that I should hold onto an open trade just a little bit longer to increase my profit for that trade. Many times the trade will then turn against me while I am waiting for more pips. Now my tendency will be to stay in the trade even longer as I hope price will get back to the point where I should have origninally exited. This could result in my ending up with no profit or worse yet, taking a loss. With that said, sometimes it can be adventagous to hold onto that trade, but I have accurately read the signs as to how much more profit I really need for this trade.

Section VI: Visually, the Aspects of my Chart must Mean Something to me.

1. Item I: It is very important that when I setup my charts, that everything visual has meaniing to me. This way when I go look at a specific aspect of my, important facts regarding current price action will be reveled to me. To have an idicator or an M.A. on my chart that has no meaning or refernce to me will confuse me in my trading and put me in a situation where I could be entering a trade where I shouldn't.
2. Item II: It is equally important that I remain comfortable with my charts and how I have them set up and what I am using for visual ques. For this reason, I should not make drastic changes to my charts without very good reason. A lot of research has gone into setting them up like I have, and it should take a lot of research to make a significant change to them.

Section VII: Staying Focused when I am Evaluating my Charts

1. Item I: It is important when I open up my charts that I look for specific things which I have defined as my trading startegies. It does me no good just to keep fliping back and forth between charts and timeframes without taking the necessary time to evaluate them based on my trading by-laws. So, when I open up my charts, I should have answered all the question I need to have answered on whether a trading opportunity exits or not. Only then I should move on to the next chart and repeat.
2. Item II: If I have determined that one of my trading rules have been met, then I should deal with that particular trade right then and there before moving on to another chart. This way I will not have to remember to come back later.
3. Item III: Once I have entered a market or a pending trade I should write down in my journal the pair I am trading, the time frame in which the trade was on, and the stratedgy I used for determining that I should enter a trade. This will help me to not get confused when it comes to possibly enterin a trade on another time frame or exiting that particular trade.

SectionVII: Stay with my Strategies

1. Item I: It is important that I stay with my strategies. I have spent many hours deciding on effective ways to enter a trade. As such I have identifiec 3 or 4 ways in which I feel comfortable entering the market. I think it is important not to mix parts of one with parts of another, but follow them to a "T". If I do not do this I will find that I will have a market position open, but that I will be lost as to what to expect or how to manage it.

Secion VIII: Stick to my Money Management By-Laws

1. Item I: It is important that I stick to the by-laws I have set up for not getting away from my means and putting too much money at risk. Since my income is limited to start with no means at the moment to replace what I loose. I need to make sure that I follow what I will call "sound money" practices.

Section IX: Limit the time I Spend Trading on a Daily Basis

1. Item I: It is important that trading doesn't run my life. That I control my trading. Not that my trading controls me. Spending too much time trading I believe will lead to bad decisions, as well as syphoning all the fun my life would be by my ability to earn a living from home.

Section X: Not to Trade Short Term on Holidays

1. Item I: It is important that I remember how holidays can affect and change the dynamics of short term trading. For this reason it is in my best interest to be aware as to which days are holidays, and take some time to stop short term trading on the holiday itself, but possible a day or two before and after the holiday as well. It will remain important to monitor any long term trades during these "days off"
2. Item II: It is also advisable to evaluate any open trades thoroughly if I am planing on going on vacation or won't be around my computer for period of time. If I plan on leaving them open, than stops should be in place to shield myself and my balance from any market disasters.

Article II: My Chart Setup

Section I: My Template

1. Item I:
   Attached Image (click to enlarge)

   
   

Section II: My Indicators

1. Item I: The first indicator I would like to mention is actually a combination of 3 EMA's. These 3 EMA's combined help me determine for each specific time frame if price is trending up, trending down or range bound. They are colored Dark Orange on my chart and are as follows:
   1. 34 EMA High
   2. 34 EMA Low
   3. 34 EMA Close

2. Item II: Next is another indictor made up of a series of 3 EMA'S. However, rather than help me determine if price is trending up, trending down or range bound on the time frame I have open. It helps me determine these attributes on the next time from above the one I have open. For example, if I have the hourly chart open, it helps me determine where I am in conjunction with the 4-hour chart by plotting the 34 EMA high, low and close of the 4-hour chart on the hourly chart. If I have the 15 minute chart open, it helps me determine what is happening on the hourly chart by plotting the 34 EMA high, low, and close on the 15 minute chart. And so on. The nice thing is that I do not need to switch charts to make this determination. They are colored Indian Red on my charts.
   1. 15 Minute Chart
      1. 165 EMA High
      2. 130 EMA Close
      3. 110 EMA Low

   2. 1 Hour Chart
      1. 165 EMA High
      2. 130 EMA Close
      3. 110 EMA Low

   3. 4 Hour Chart
      1. 225 EMA High
      2. 180 EMA Close
      3. 115 EMA Low

   4. Daily Chart
      1. 260 EMA High
      2. 205 EMA Close
      3. 165 EMA Low

3. Item III: Next on my chart is an indicator which I purchased from MBFX Trading which I really enjoy having on my chart. Using it makes it easier to put into perspective the other lower indicators that I use. This indicator consists of the 7 background lines that are visible on my chart. The concept of this indicator is to look to sell when price reaches the upper red lines, and to look to buy when price reaches the lower green lines.
4. Item IV: Next is a CCI indicator which I found here on FF which I have done some modifications to and I am expecting to do more such as alerts to my cell phone, etc. I use this indicator in multiple different ways to enter the market.
5. Item V: Lastly is a second indicator from MBFX Trading that is used in correlation with the MBFX indicator on my chart. I also use this indicator in multiple ways to enter the market.
6. Item VI: I will also use trendlines on my chart. Usually no more than one or two at a time. I will use these in multiple ways to help me enter into a trade.
7. Item VII: Oracle Momentum Indicator
   1. This indicator consists of the Blue and Red Slope Lines on my chart. The concept is that when the blue slope line is below the red slope line, momentum is down. When the blue slope line is above the red slope line, momentum is up.

Article III: Currency Pairs to Trade and Time Frames in which to Trade them
Section I: Which Time Frames and Which Pairs

1. Item I: After much deliberation regarding time having to spend at my computer, total risk, and having a life, I think it is best that I focus my attention to limiting both end of day and intra day trading.
   1. Intraday Trading
      1. 1 Hour Charts: I will trade the following pairs during the New York session-ish.
         1. eurusd
         2. gbpusd
         3. usdcad
         4. usdchf
         5. eurjpy

      2. 4 Hour Charts: I will trade the following pairs anytime. However, my end of day trading on the daily charts will take precidence.
         1. All pairs excluding the 5 above.

   2. End of Day Trading
      1. Daily Charts: I will trade the following pairs anytime.
         1. All pairs excluding the 5 above.

Article IV: Trading Strategies and Using my Visual Chart Aids
Section I: Trendlines

Section II: CCI Divergence

Section III: MBFX Reversal

Section IV: Oracle Momentum

Article V: What Strategies for Which Time Frame
Section I: 1-Hour Time Frame

1. Item I: CCI Divergence
2. Item II: MBFX Reversal
3. Item III: Oracle Momentum

Section II: 4-Hour Time Frame

1. Item I: MBFX Reversal
2. Item II: Oracle Momentum
3. Item III: Trendlines

Section III: Daily Time Frame

2. Item I: CCI Divergence
3. Item II: MBFX Reversal
4. Item III: Oracle Momentum
5. Item IV: Trendlines

Article VI: Staying Focused so I Don't Miss that Very Important Entry
Section I: Order in which to Determine if a Trading Opportunity Exists

1. Item I: Open up a chart to full screen mode.
2. Item II: Verify that all trendlines on that chart are current.
   1. If they are not current, update the chart with current trendlines before moving on.

3. Item III: Determine whether the criteria have been met to place a LIMIT order based on any valid trendline breaks.
   1. If so, place any LIMIT orders before moving on.

4. Item IV: Determine whether we have any divergence forming on the CCI indicator
   1. If so, make a note of which pair so you can check back later.

5. Item V: If we have divergence on the CCI indicator, make sure that the second criteria is met of a level crossing.
   1. If so, place any STOP entries before moving on.

6. Item VI: Determine if price has touched either of the upper green lines or the lower red lines of the MBFX System indicator.
   1. If so, make a note of this in my notebook before moving on for easy reference.

7. Item VII: Check the MBFX Timing indicator and compare it with any notes on the MBFX System indicator to determine if a STOP trade should be placed.
   1. If so, place any STOP entries before moving on.

8. Item VII: Once again, check the MBFX Timing indicator and determine if there are any signals for a continuation trade.
   1. If so, place any STOP orders before moving on.

Article VII: Entering and Exiting a Trade
Section I: Entrance Details

1. Item I: 1-Hour Time Frame
   1. 6 Pip Buffer
   2. Figure in spread when entering a buy stop or a buy limit order

2. Item II: 4-Hour Time Frame
   1. 12 Pip Biffer
   2. Figure in spread when entering a buy stop or a buy limit order

3. Item III: Daily Time Frame
   1. 18 Pip Buffer
   2. Figure in spread when entering a buy stop or a buy limit order

Article VIII: Trading End of Day Stocks
Section I: Choice of Stock

1. SLV - This is a Silver ETF fund that follows closely with the price of silver

Section II: Trading Hours

1. I am only going to trade stocks using the daily candlestick charts
2. I will evaluate my charts stating at 3:00 p.m. CST. This will give me a chance to contact my broker and place any orders with my before the end of the trading day.

Article IX: Day Trading Holidays

Section I: January
Section II: February
Section III: March
Section IV: April
Section V: May

1. Memorial Day Holiday
   1. I will take a trading holiday the Thursday and Friday prior to Memorial Day, as well as Memorial Day itself.
      

Section VI: June

1. No Mandatory Days Off

Section VII: July

1. 4th of July Holiday
   1. If the holiday falls on a week day, I will take a trading holiday the day before and the day of 4th of July.
   2. If the holiday falls on a weekded I will take a trading holiday the Friday before and the Monday after.

Section VIII: August

Section IX: September

Section X: October

Section XI: November

Section XII: December


Dust

What a nice day in the markets. My charts advised me to short the EurUsd, GbpUsd, as well as long UsdCad and GbpAud. Shortly after entering my trades, price easily hit my Take Profit targets. It was nice that it happened so fast with very little messing around. As I had to leave my house during this, it was nice I did not have to do any adjusting of my Stop Loss level.

Setting up my Trading Constitution is working very well for me so far. I followed it to a "T" today again, and it was great! I want to be able to keep updating it with exactlty how my trading is to be accomplished every day, and not vere from that plan of action ever.

Though these trades were taken on a demo account, it will be lovely to compound this a bit and shoot for just a little bit more tomorrow. If this keeps up, I will be able to go live with confidence this time. Perhaps it won't be long and I will make public my live account!

That is my goal!

Dust

Good Morning:

Nothing really to say or report. Just wanted to say Good Morning, now that I am in the office. Time to see what the day brings.

The only initial trade I am possibly looking is a USdCad short. Otherwise, nothing else is currently in my sights at the moment. But, on the M 15 chart, that can change within a few hours. So I will keep my eyes open.

Good Luck Trading!

Dust

What a nice day compared to yesterdays uncertainty.

I want to say that I feel so much better about my trading since I have started to put togehter some rules for myself. Besides being able to make a living trading, there are many more things that I want trading to be able to do for me in life. I realized as of late, that I have not been doing a very good job in that category, and it was about high time I did.

Now at the same time I am reaching my trading goals. All of my trading goals. What a difference taking my trading to this level means to me in my life.

I am so looking forward to tomorrow.

Good Luck Trading!

Dust

According to what I am seeing, EurAud has gone bearish. As such, I have entered a short trade. How long it will remain bearish I am not sure. I have placed a safety stop sightly above the last swing high, which allows me about 400 pips worth of wiggle room.

Take Profit is 10 pips!

I hope it makes it.

No take profit. I am riding it until she can' take me any longer.

I will pass along an update when one becomes available.

Dust

Good Morning.. what a wild ride that was.

M15 morning trades -

My system had me Eurusd short this morning which looked good for awhile, but then went against me for a loss. But, it then had me open a long position where I proceeded to cover my losses from the first trade and make a nice profit. I must say that the confidence is building go live for real.

GbpUsd had me long and so did GbpAud, though the profits for GbpAud have yet to be realized. UsdCad also still has me long.

It is interesting to be long all four pairs at the same time. Whoever trades based on correlation of pairs could have some very very bad days.

I love it when a plan comes together. I am looking for more opportunities next week.

All said I am looking for a very nice weekend, and I hope anyone reading this has one as well.

Dust

As I want this thread to be journal for all my activities, I am goin to use it for multiple things:

1) My daily 15M chart trades of the eurusd, gbpusd, usdcad, and the gbpaud

2) My end of day forex trading off the daily chart

3) My end of day trading of stocks.

So, here is my stock update for today:

Bought AAPL (Apple) @ 571.66 with a stop @ 521.17

Bought HOG (Harley Davidson) @ 46.68 with a stop @ 44.87

I guess the other reason I am adding this to my journal is that I am using the same strategy trading both intra and end of day currencies and end of day stocks.

The fact that how I am now trading works during all three medians with anything that I want to trade has really boosted my conficence level.

I believe I am finally ready to make a real go at this!

I just need to be patient, go slow and keep spending more time away from my computer than I do at.

Again, have a nice weekend!

Dust

It seems that everything I have in place to be a successful trader is looking good. However, there is one last thing that I still need to complete. That last thing is....where to place my initial Stop Loss.

So far, I have just been using the high or low of the last swing. This works well, as long as the market doesn't revert back immediately. If this happens, which it does sometimes, I think that my Stop Loss is to great, and my loss ends up to be too large. I think it would be better to find a method for placing the Stop Loss, where I would not be risking so much right off the bat.

As you can tell from my EurAud trade and my two stock trades above. My Stop Loss is rather generous. I do not think that I need to be so generous to the market, as it already has everything.

Therefore, I think my philosphy for figuring out a system for placing my Stop Loss will be that I would rather get stopped out for a small loss, and re-enter, than take one large loss by using too generous of a stop.

The key for me now is figuring out the point in a trade where it is likely that the trade will continue to move against me. It is at this point that I would like to place my Stop Loss every time.

So, that is my project for the weekend.

Be good to yourself fellow traders.

Dust

Okay, I have found what I think is the proper place to put my stop for this trade. Besides this, I will also use a Stop and Reverse if that happens first, but for now I have zoomed out my chart on the H1Time Frame to what seems the best place for my stop.

That point is 1.2900, and is shown here at the trend line.

I think I will place my SL @ 1.3000, but leave the Trendlline where it is. I will than revert back to this post and verify, that to close out this trade I need a close above 1.2900, and a break above the high of the bar that closed above 1.2900.

This puts my Stop Loss at about 200 pips rather than the 400 I originally had it set at.

Now, if the Stop Loss is hit without giving me a signal to trade long, I can than reset another sell order at the same spot or higher than the original one.

No harm No foul.

Dust

Attached Image (click to enlarge)

Could you link up your trade explorer with your journal please ? Thanks. :-)

good luck with your trading,will drop by to follow your journey

Let me see what I can do. I do not run my live account off an MT4 platform anymore. I just do my charting on MT4. With that said, I will go ahead and open a new demo account and when I place a trade, I will also place one on my MT4 account with a chart so you can see the progress. At least with my End Of Day trades. The 15M trades I make I will try to do those as well, but during that time I am pretty much in the heat of the moment.

So, this will be a new demo account untainted with anything by my end of day trades and soem 15M trades as I can. As such, it may take a few days to appear. Hope this helps

I found that by not doing my charting and trading from the same account that it gives me a buffer between my impulses and pressing the "enter" button.

Thank you. I wish the same for your journey.

Looks like my day trading opportunities may come a bit later, as the four pairs I trade showed they were already into a move by my indicators. I am not interested in chasing trades. I will have to see what happens as the day progresses. As a matter of fact, this is good information to add to my Trading Constitution.

I have also started a fresh demo account for monitoring my trades on MT4 and have opened up the EurAud trade placed a few days ago.

Dust

My first trade today is a UsdCad long. This was made off the 15M chart.

Entry @ 1.04122

Stop @ 1.0387, or a reversal trade.

No take profit at the moment.

Took a 13 pip loss. I was not around to close a boit earlier, this trade should only have been about 8 pips.

I went short UsdCad as well as GbpAud.

Will see if we have some trades that will take us into Asia open or if things are just going to slow down and not to much.

I will keep my stops at about 25 pips or so for each pair.

Dust

My UsdCad and GbpAud short positions are still open and finally starting to see some profit.

Long term: I have opened a EurNzd sell trade at market. It looks like I will also be placing a Gbpchf sell stop in about 45 minutes. But I will check back a little later in regards to that trade.

Off to see if there are any good postions to buy any stock.

Dust

Had this been still during the US markets, I would have most likely left my trades open. As it is Asia, I have closed both my UsdCad and GbpAud trades with a profit.

I have also opened up a GbpChf sell stop order for a long term trade off the Daily charts.

Until tomorrow when I will be here collecting some more pips..

Later,

Dust

Good Morning -

I got into the office a little late this morning, and consequently I missed my GbpAud short entry. Other than that, nothing is happening at the moment.

Yesterday was really quite and nothing was very appealing, so I stayed on the sideline.

My two open longer term trades are off and running, so I will be keeping an eye on them as well.

Dust