Swing system development journal

I have effected some minor changes in the system.

Richard Dennis said you have to be schizophrenic when designing a system,you have to tweak the system every second,until when you decide its good enough for live trading. Then you have to follow the system rigidly.

I hope the new tweaks will be permanent.

http://http://s7.postimage.org/vs1h767gr/image.gif

gone long USDJPY at the top of the candle

lets see whether my SL will survive


http://s7.postimage.org/vs1h767gr/image.gif

I missed taking two trades which would have been a B.E and a winner.

I have noticed when I lose,I can't see other opportunities before me.Its like my brain becomes frozen, I suffer from this behavior even in the real account as I treat demo exactly as real.

At least I know where the problems are,next is how to find the solutions.

this week I have been too busy to trade well as my co-worker is absent.

hopefully next week all will be well.

I have been reviewing the performance of the system if I had taken all the signals and I am thrilled.

I believe with a little practice I will get proficient in executing the system. I want to eliminate all the biases I have step by step until I learn to trade like a machine.

went short GBPAUD and is currently at around B.E.

My goal this week is to take each signal regardless of my biases and then review each trade.

stopped out of my USDJPY position by a spike.I must learn to give my profits more room.
Also failed to take a long position in EURUSD coz of my infamous intuition.

I think its cool to end the month positive even with a lot of holes in my game.

I see a lot of potential with the system, I am the one failing in my execution.

lets see what February has in store.

went short GBPNZD and long EURUSD.Both around B.E now,I hope I don't lose on the two but I'm very satisfied I followed my system.

If I had followed the system without deviation I would have been sitting on around 12% profit and wouldn't have been worrying on this john come lately trades spoiling my month.

"went short GBPNZD and long EURUSD.Both
around B.E now,I hope I don't lose on the
two but I'm very satisfied I followed my
system."


I was correct on both directions...gbpnzd got stopped out by widening spread to 20 pips!!!

I have to change the timeframe for NZD pairs to 4H as its not realistic to trade them on 1H timeframe.

The other problem is to stop using tight trailing stops and to let my trades breath.

I want to get the MAE and MFE of my trades using mt4i once I reach at least 100 trades and that will sort the optimum ATR multiple that I should use.

so far I have isolated two major weaknesses with my game;

1.Not taking all the signals- I still use feelings a lot and they are betraying me.

2.moving my stop too soon-this is my most dangerous habit and I have to kill it as its affecting my R:R negatively...no other way.

I believe with these two problems sorted I can make at least 10% per month without problems.
I will be vigilant.

I have decided to continue trading NZD pairs on H1.I will have to adjust SL to accommodate the widening spreads of upto 20pips.This is for diversification purposes.

long EURAUD and USDJPY.I will try not to move my SL too quickly.

lets see if the trades survive.

nice end to the week...at least black ink.I traded real well without violating my system.

let's see what next week has to offer.

I have decided to adopt a volatility based trailing stop where I close half my position on high volatility.I have noticed I am not comfortable with giving too much profit back.
As Livermore said when you are uncomfortable with positions,sell to the comfort level.

It may not be the best strategy but its one that addresses my weaknesses rather than use a tight trailing stop that is even more detrimental.

http://s3.postimage.org/ro9x45xtv/IM...214_093002.jpg

gone long USDJPY as per signal. I have noticed Thursdays are the worst performing days for my system.seems there is a lot of fake moves.

SL hit....incidentally I also got a short signal for EURUSD and I chose not to take it coz I thought it was double risk!! it could have been a great winner.

I have been reviewing my results this afternoon and I have found my trading discipline is poor.I still need
to follow my system atleast 95%.

All is not lost however coz I'm seeing some improvements and I am noticing the weak parts in my play.

I don't know how long it'll take for me to reach my goals,maybe another 20 trades.

closed my EURUSD long just after entry after noticing the market was quite stiff.I expect nice moves from tomorrow.

no trades today.its been an average week coz I failed to take two setups that would have won big.however the market let me easy.

so next weeks goal is to take all the signals.

been a little while....well the system is still doing great.I think I can say the system is now beyond improvement. All I can do is continue to improve the execution part and exits.

by the end of this month I'll open a micro account and trade it to 100 trades before making further commitments.