Book of LITE

Currency Strength/Weakness profiling for Week 6, Mon. 3rd Feb. - to - Fri. 7th Feb. 2014.

STRENGTH PROFILE
1. -GBP
2. -CHF
3. -USD
4. -EUR
5. -NZD
6. -JPY
7. -AUD
8. -CAD

RATE OF CHANGE
1. JPY
2. GBP
3. USD
4. CHF
5. EUR
6. AUD
7. NZD
8. CAD


(1 = strongest; 8 = weakest).

Trading Plan for Week 6 Mon. 3rd Feb - Fri. 7th Feb 2014.

1. Continue with CADJPY trade initiated last week.
2. Entries to be made only after Asia session on Tues. 28th Jan commences.
3. No trades to be taken after Asia session on Fri. 31st Jan closes.
4. Play relative JPY strength against CAD weakness.
5. Take particular note of high impact news/ volatility expected with news on WED 5th, Thur 6th and Fri 7th. (NFP week).

WEEK 6 TRADE SUMMARY

Terrible trading week it was. Made some really stupid errors, but the learning experience is good for me. Basically I entered more positions to the CADJPY trade plan for the week and ended up over leveraging the account. GREED. I have to learn to stay within my risk management plan. Most important lesson is I should have taken profit at previous weeks low. That was the highest probability scenario given that I dont like moving stops to breakeven and become a victim of market volatility.

Currency Strength/Weakness profiling for Week 7, Mon. 3rd Feb. - to - Fri. 7th Feb. 2014.

STRENGTH PROFILE
1. -GBP
2. -CHF
3. -USD
4. -EUR
5. -NZD
6. -JPY
7. -CAD
8. -AUD
RATE OF CHANGE
1. JPY
2. CHF
3. USD
4. EUR
5. NZD
6. GBP
7. AUD
8. CAD


(1 = strongest; 8 = weakest).

Trading Plan for Week 7 Mon 10th. Feb - Fri. 14th. Feb 2014.

1. CADJPY trade setup still valid.
2. Entries to be made only after Asia session on Tues. 11th Feb commences.
3. No trades to be taken after Asia session on Fri. 14th Feb closes.
4. Play relative JPY strength against CAD weakness with respect to Rate of Change.
5. Take particular note of how price will react around the nearest most significant support at 92.01 which is WEEK 4 LOW.
Weak buying there makes a sell entry with target at 90.80, LAST WEEKS LOW, a very high probability setup. Fingers crossed.

Unfortunately couldnt update my journal last week. Serious ISP issues. My strength indicators suddenly refusing to update after the latest mt4 updates. strange. Will have to do a manual relative analysis of currency strength and/or weakness for now. Still have a CADJPY sell in play from 2 weeks ago or so. The setup is still very much valid. From now I just have to be DISCIPLINED enough to stick to my risk tolerance per trade. 2% for now. The actual power is in compounding i realise. GREED always tempts to over-leverage.

In the longer term, GBP, EUR and CHF still typically looking strongest, while AUD, JPY and CAD continue looking the weakest. Since my strength meters are not working for now, a cursory analysis of how each of the strong currencies performed against each other and each of the weak currencies, suggests CHF to be the strongest going into WEEK 8, while CAD is without doubt still the weakest across board.
So CADCHF is on focus this week. Next is to figure out entries...

CADCHF ENTRY PLAN...

CADCHF EXIT PLAN...

Average weekly candle size is about 180pips, so depending on where the high of the week is when entries are triggered, TPs will be continually updated accordingly to reflect the high of the week.

WEEK 9 TRADE REVIEWS
Entry 1 Level was triggered according to plan. Re-entered again at the same level when it was becoming obvious 0.8044 was probably going to be the high of the week. Target originally set for 180 pips using 0.8044 as the week high, but BUYING VOLUME (or partial profit taking) started after 150 pips @ 0.7895, so closed the trades for the week at 0.7937 for about 103pips. Trade setup still valid though, so might start rebuilding continuation re-entries at the nearest major resistance level 0.7991 depending on how how price reacts there.

WEEK 9 TRADE REVIEWS

...got fed up with the CADJPY trade and closed it for 26 pips and 56 pips.

Started experimenting with VOLUME CALIBERATED ENTRY LEVELS, so took a couple of other trades that were not originally part of my trade plan for the week.
They all worked out, so I might start incorporating this strategy into my entry plans.

EURUSD 126 pips.
GBPUSD 71 pips, 120 pips, 118 pips.
NZDUSD 94 pips.
USDJPY 50 pips, 79 pips.

WEEK 8 Strength and ROC Profiling was used to pick direction on all the trades while Volume Caliberated Levels used to pick the entries.

Currency Strength/Weakness profiling for WEEK 10 based on PRICE ACTION DURING THE MONTH OF FEBRUARY 2014.
STRENGTH PROFILE
1. -NZD
2. -CHF
3. -EUR
4. -GBP
5. -AUD
6. -CAD
7. -JPY
8. -USD
RATE OF CHANGE
1. GBP
2. NZD
3. CHF
4. EUR
5. AUD
6. USD
7. JPY
8. CAD

(1 = strongest; 8 = weakest).

TRADE PLAN FOR WEEK 10 2014

I will be looking for VOLUME CALIBERATED ENTRIES( limit orders) on GBPCAD and NZDUSD, as suggested by STRENGTH and ROC PROFILING.
Will also look for entries on other pairs except AUD pairs.

GBPUSD, NZDJPY and EURJPY also added to my short-list for the week.

GBPJPY, CHFJPY, CADCHF and USDCHF added...

WEEK 10 TRADE REVIEWS

What a week! Mind boggling rallies all over the charts! My strength profiles and volume caliberated liquidity levels working out perfectly so far. Didnt have a single losing trade and hit about 50% increase in account balance, which suggests risk exposure still a wee bit high, but actually each INDIVIDUAL trade by itself was properly sized for low risk. But overall drawdown did hit an uncomfortable 10% or so at a point, so ill have to work on an algo for capping overall risk exposure.

Current algo for profiling strength/weakness working a treat, while Rate of Change profiling not so much, so Im just gonna dump that and stick strictly with strength/weakness in collaboration with volume caliberated liquidity levels/zones for building positions.

Currency Strength/Weakness profiling for WEEK 11(Mon 10th March - to - Fri 14th March 2014).
STRENGTH PROFILE
1. -CHF
2. -NZD
3. -GBP
4. -AUD
5. -EUR
6. -USD
7. -CAD
8. -JPY

(1 = strongest; 8 = weakest).

Trading Plan for WEEK 11(Mon 10th March - to - Fri 14th March 2014).

Pairing strong pairs against weak pairs mean Ill be trading CHFJPY, CADCHF, USDCHF, GBPJPY, GBPCAD, GBPUSD, NZDJPY, NZDUSD and AUDCAD(my broker doesnt offer NZDCAD).

WEEK 11 REVIEW

Most pairs stuck into liquidity seeking mode, which mostly meant counter-trend setups. These are not as high probability trades as trend trades, but still tradable with experience and proper risk management. Largely an uneventful week for me, though tried taking some of the CTs, for small loses. Good news is most of the pairs closed out the week around strategic liquidity levels, which makes Week 12 a high probability trend continuation trading week, or at the very least good to start building positions.