Laurus Trading - Reasonable risk & immense long-term return

My trading is based on price action and position management aimed at stable regular daily profit (1% - 2%) with not too high drawdown (maximum 30%).

Instruments
EURUSD
GBPUSD
USDJPY
USDCAD
DAX
SP500

Timeframe
H1 to draw S/R lines
M15 to enter the trade

Chart
in attachement

Entry
With trend (from H1 timeframe), after pullback to S/R line
Decision supported by Stoch, EMA100 and Pivots
1st position is opened after initial signal
2nd position can be opened (from limit order) at a better price on closest local support/resistance
Stop loss
Hedging - if the price goes in opposite direction I start to progressively: open opposite positions and close initial positions. I close new opposite positions on next major S/R

Take profit
To the next local S/R. Usually about 20-30 pips

Disclaimer
Please note that any information provided in this thread should not be construed as trading tips, recommendations or investment advice and is provided with no warrants as to its accuracy.

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I'm open to questions and suggestions regarding my trading - maybe there is something I can change in order to have better results. I'll be posting here my trades - you can follow my trading also on Trade Explorer.

My trades from yesterday and today (I waited 1 day because I kept open positions):

EURUSD
Simple pullback from resistance in downtrend
Today I was waiting to see price reaching R1 to short again - however it retraced earlier without me

USDJPY
Simple pullback from support in uptrend
Today I was waiting for some strong reaction around S2 0 however it retraced earlier without me and without a clear sign

DAX
Today quick trade (late unfortunatelly - it looked for me as a chance for some quick rally at the end of the day - but it wasn't so I closed it quickly before session end). I should have entered earlier when it retraced from Pivot, however I had to leave computer.

GBPUSD
This instrument was problematic for me. First of all I started to enter shorts a bit too early - then buy stop order triggered, price retraced, leant on previous resistance
and then started to rise so I thought it will go up to 1.2575 so I closed shorts and placed another long. However it didn't go up so easily and created double top. So I started to decrease long position and progressively increase short position - I thought that so strong bearish signal will lead price to bottom around 1.2450 but it didn't happen and price retraced strongly from 1.2480 (it was also yesterday's pivot) - here I could have closed shorts and open longs, but I was sure that after that double top it will go further down and this retrace was just a quick one. After it broke 1.2510 I should have closed shorts (because short move was simply rejected) and open long and catch 20pip move until the next resistance, that could decrease previous losses - but I didn't because I was sure it will go down so I even opened another short at the top to make it easier to recover. Above the resistance I placed some buy stop orders (so that I would lock the position in case of move up) - after I woke up I could see that small position has been triggered, but I quickly closed it when few stron bearish engulfings appear (I replaced this buys as pending buy stops above this formation) - at this point finally my projections appeared to be right and price went down and i recovered with profit. If CPI from UK was positive and price would go up I would need to start closing shorts with big losses and my buy stips orders will be triggered and I will try keep this trade until next major resistance at 1.2575 where I would go out and maybe enter short if some visible pinbar appeared - to recover as much as possible. I'm not happy with too many switching of the position in those trades - if anybody has some idea, how could I have played this simpler, please let me know

Today's profit = +1%

USDJPY
First trade was too early and I quited because it started to go in opposite direction. I should have waited a bit for the price to drop a little bit and enter just after pinbar - however I thought that CPI from US would make mess on the chart so I haven't reentered - which was an error because this economic event isn't so strong and I could've quickly make money on this trade.
The second trade was after nice pinbar from main support on pivot, however I resigned as the market wasn't showing a strenght in up move.

GBPUSD
Entry on rejection from the resistance - the first trade wasn't enough so I had to add another.

EURUSD
Entry on rejection from the resistance similar to one on GBPUSD, however the price hasn't moved enough and I decided to close it, because it was late and I didn't see strength in this move. Here in fact I shouldn't even enter because just before entry the price broken previous resistanceon 1.0575 - so even if the market stopped on the next resistance, the move was purely bullish so it was too countertrend.

DAX
Here I haven't entered - after prior hard move down I waited on double confirmation in form of e.g. additional pinbar on this level in order to go long to the closest resistance. Probably I will make entry if I spot such situation in the future - if it goes against me I will just quickly go out of the trade or switch the position.

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If you have any questions or something is not clear or you see something that could be make better in my trading - don't hesitate to join the discussion

Last 2 days of this week were fatal - I've made many mistakes that lead to loosing all what I 've earned so far in February. But when I analyzed my errors I realized that it was mainly caused by not following rules of my system - if I had done it right, I would end up this week with nice profit.

DAX
First 2 trades were ok. The next day I was looking for some quick ways to recover losses from USDJPY and I haven't used my setup of pending limits and stop orders - after first rejection of up move I thought that maybe the uptrend is over so I closed with minimal loss and try to catch this down move with tight stop loss and of course caught this SL. The main mistake here was trying to catch down move when it was not really confirmed - I should have stayed outside the market if it wasn't clear.

EURUSD
I waited for a pullback in uptrend and I found it on Pivot line. I entered it correctly - what I did wrong was going out from the trade 3 times and entering again because I saw opposite signals - this was a mistake, because once I entered the trade I should have taken into consideration that price will fluctuate before a stronger move up. Afterwards the rest of managing position was ok - I started to open sell stop orders and closed open buys - it was according to the strategy and I finally got out on the next main support.

GBPUSD
I entered long position according to trend on pivot, however 2 bearish pinbars afterwards made me change my mind - the macro data were about to go out so I thought it would be wiser to quit. I think it was a good decision - however if stayed in the trade and would need to reverse the position I would earn enough till the main support on S3 to break even or even a bit profitable on this move.

SP500
First trade was too early - I shouldn't enter it but I had closed it pretty fast. The next trade was biased by recovering losses from other trades so I was also counting on quick and long move up so instead of closing with some profit at the end of the day, I kept it and had to close it on small loss. The next day my decision to enter long was good, but opposite candles lead me to close it to early. Basically I shouldn't be looking on single opposite candles on M15 - on H1 they looked very bullish so there was nothing to be afraid about.

USDCAD
I shouldn't even enter the first trade - but it's good that I closed it on break even. Another trade that day also ended on 0 profit but in fact there was no clear situation here so I also shouldn't have taken it. What I should have done was long trade next day in the morning.

USDJPY
On Thursday morning the price was a bit lower and I have doubts - maybe the uptrend was over. I should have stayed out until the market is more clear, however I didn't and I opened a long position, but it wasn't the biggest mistake because following the system would simply let me reverse the trade and be even profitable by the end of the day. My mistakes were following:
- closing next shorts too early instead of waiting till the major support - because I thought that the market is reversing again
- entering again long trades too early (I should have opened longs after the price shows that the down move was false and breaks previous support - which became resistance @114.00). At least I could have closed this unnecessary long position after the confirmation of down move. In fact after a price gone up a bit - instead of opening longs I should have open another short position (half of the existing sell position) because the price showed rejection and confirmed the down move.
The next day I closed the shorts from previous day, because I thought it's going to reverse and immediately opened long position which I quickly closed and opened short again, because a moment later I thought that the down move will be continued - very bad, impulsive overtrading without sticking to rules of the system.

Conclusions
The good thing about that is that I realized which errors I have made and I cannot make them again if I'm thinking seriously about growing this account:
1. After reversing the position, the reversed position should be kept till the major support/resistance and single m15 candles shouldn't matter.
2. After reversing the position, the opposite pending stop order should be kept above/below the main support/resistance.
3. If I'm not sure about the market I shouldn't enter.
4. If I enter, I should always do it according to rules with pending limit and stop orders and just wait a bit, give the price enough place to breath and keep the rules.
5. Going out of the trade before reaching TP or main S/R can be only based on strong signal on H1.


Next week I'm going to be more more vigilant and I will just stick to the rules. Making the same mistakes is just not an option.
I hope that those conclusions will be also helpful for others

This strategy appeared to be not good for me so I'm ending this journal. In the meantime I'm testing a different strategy that has much bigger potential in my opinion. Soon I will start a new journal with new account.

hy laurus why stop this jurnal? why not to focus with one strategy and be a pro with that...When you know the weakness of this strategy, Should have been anticipated...sory just my stupid opinion