Ananth's journal (DEMO Trading)

Hi All,

Here is a short intro about me before starting my journal.

I am 2 years old to forex trading. I read lots of information and tried lots of strategies, lots of indicators, lots of EAs. Even coded 100s of EAs and indicators. But i am not successful yet. I always wanted to automate and i wanted the robot to generate income for me. I wanted to enjoy the life while my robot works for me. I realized that i cannot create a successful robot without being a successful trader myself. Also no one is going to give their successful robot to others with 99$. It took me 2 years to understand this.

Finally i decided to trade manually. I have a full time job which would take around 9 to 10 hours of my time daily. I don't want to spent rest of my time also before monitor starring at the charts. So my trading will be simple and would take less chart time. Thats all about the intro. Below is my plan. If below plan doesn't works, then there are only 2 reasons.

1. I am not discipline and not followed the plan correctly. I can rectify this by following the plan correctly.
2. My plan has some problems. Identify the reasons which are repeating in the lost trades and correct the plan based on the repetitive reason.

here is the plan:

Analysis: Look for direction in weekly. Look for entries in daily.
Direction --> Based on trend indicator. Should not in a range.
Entries --> Based on PASR. If price is near SR(Support Or Resistance), price near round numbers, price at 50%fib, price at oversold or overbought of oscillator indicator, price action on candlestics.

Open position: place stop orders on the low or high of confirmation candle. Should be filled with momentum.

Profit taking or exit: based on the trend reversal on higher timeframe, based on sr lines, round numbers and add more on coming through anything simple.

Stop Loss : Give enough room. On swing low or swing high, on SR line. Add more on anything i come across.

Discipline : No hard rules. But don't enter without reason. Keep it as simple as possible.

Exposure, money management will be added when trading live.

Here is the excerpt:

1. Look at higher time frame for direction. There should be a valid trend to go lower or skip the instrument.
2. Price should travel in opposite direction to the trend in lower timeframe. Mark the retracement levels. Look for price actions on those levels or oscillator trigger to place orders.
3. Try to filter out entries. Its better to not trade than to lose.
4. Exit trades wisely.
5. Give enough breathing space for the trades. Place stop orders based on that.
6. Demo trade until tripling atleast three demo accounts.(Even if it takes my whole life. If I can't do that in demo than it can't be done in live).

I wish you great patiente and discipline.

Best of luck

Thanks broketrader !!!!

Order #1:
Placed GBPUSD sell stop --> 1.5550(Fancy round number ),sl-->1.5780, TP-->1.51.
Reasons for placing order:

1. Weekly : Trend is down. Price is below 50 and 20 sma. High of current candle touched 50sma and bounced.
2. Daily : Bearish engulfing bar is forming. Williams %R is in overbought territory. Support at 1.5600. Placed order below the support to get it filled with momentum.

Reasons if trade fails:

1. Slope of 20 and 50 ema in weekly is not good enough. So weekly is slightly in range bound.

Lets see how its going.