Currency trading on D1 time frame

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trader_d

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I'll be posting my forex trades on daily time frame (D1) in this journal.

I have a full time job and usually have difficulty trading lower time frames. Recently I started trading H4 time frame using a mobile phone when I'm at work. However, D1 time frame is still my primary choice. My method is purely technical analysis and I (try to) follow trend. I try to catch reversals and add to my position at retracements.

My favorite pair for this method is eur/usd, but depending on market conditions I may trade other pairs such as gbp/usd, aud/usd or usd/jpy.

I hope this journal improves my trading.
 
Good luck :clover:

I'm guessing you are not Trader_Dante in disguise.:rolleyes:

Will watch with interest
 
trader_d;1238500using a mobile phone when I'm at work. However, D1 time frame is still my primary choice. My method is purely technical analysis and I (try to) follow trend. I try to catch reversals and add to my position at retracements.
Click to expand...


Good luck as your gonna need it trading off a mobile. I use a mobile app only to monitor or close trades but never to open trades.
 
JDTRADER said:
Good luck as your gonna need it trading off a mobile. I use a mobile app only to monitor or close trades but never to open trades.
Click to expand...

I'm not gonna use my mobile device for this method. I open/close trades only around 5 pm NY time. This method is suitable for people having full time job who can't watch the market intraday.
 
I'm short on eur/usd at 1.2879 from 12-Aug-2010.
I won't consider this trade in my profit/loss calculations in this journal, because I opened it before starting this thread.
 
I closed my short position and now I'm long at 1.2802 with s/l at 1.2650 with 1% risk.
Things on on daily time frame move very slowly. This will be a very boring journal. :sleep:
 

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trader_d said:
I closed my short position and now I'm long at 1.2802 with s/l at 1.2650 with 1% risk.
Trading on daily time frame is very slow. This will be a very boring journal. :sleep:
Click to expand...

Lets see who is right ?

I'm short target 1.2665
 
YOu might both be right, bearing in mind that his stop is below your target.
 
Thursday euro traded in a very narrow range. I won't close the position during NFP.
I also set a sell stop order at 1.2650 s/l: 1.2786
 
Position closed at 1.2880. Have a nice weekend everybody.
 

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trader_d said:
I closed my short position and now I'm long at 1.2802 with s/l at 1.2650 with 1% risk.
Things on on daily time frame move very slowly. This will be a very boring journal. :sleep:
Click to expand...

A good move and good trading, well done :clap:
 
trader_d said:
I'll be posting my forex trades on daily time frame (D1) in this journal.

I have a full time job and usually have difficulty trading lower time frames. Recently I started trading H4 time frame using a mobile phone when I'm at work. However, D1 time frame is still my primary choice. My method is purely technical analysis and I (try to) follow trend. I try to catch reversals and add to my position at retracements.

My favorite pair for this method is eur/usd, but depending on market conditions I may trade other pairs such as gbp/usd, aud/usd or usd/jpy.

I hope this journal improves my trading.
Click to expand...



Good luck trader, I have an ambition to add forex at some point to my index trading and I too have a 'real' job that keeps me away from the screen for long periods.

One word of caution on trend-following. This is old, well-established respected advice - but it dates from an era when investors were just that, rather than traders, when they could only go long and only on real shares, there being no spreadbetting or CFD's available. Check your system for positions taken with-trend and counter-trend. Two systems that I use and have back-tested on indices are only just a bit better than break-even when counter-trend entry signals are ignored: but they pay very well if these are included. Severely back-test your systems before you exclude counter-trend positions, they could be your biggest earners as long as you have a strict and sensible stop-loss.
 
tomorton said:
Good luck trader, I have an ambition to add forex at some point to my index trading and I too have a 'real' job that keeps me away from the screen for long periods.

One word of caution on trend-following. This is old, well-established respected advice - but it dates from an era when investors were just that, rather than traders, when they could only go long and only on real shares, there being no spreadbetting or CFD's available. Check your system for positions taken with-trend and counter-trend. Two systems that I use and have back-tested on indices are only just a bit better than break-even when counter-trend entry signals are ignored: but they pay very well if these are included. Severely back-test your systems before you exclude counter-trend positions, they could be your biggest earners as long as you have a strict and sensible stop-loss.
Click to expand...

Interesting point
 
tomorton said:
Good luck trader, I have an ambition to add forex at some point to my index trading and I too have a 'real' job that keeps me away from the screen for long periods.

One word of caution on trend-following. This is old, well-established respected advice - but it dates from an era when investors were just that, rather than traders, when they could only go long and only on real shares, there being no spreadbetting or CFD's available. Check your system for positions taken with-trend and counter-trend. Two systems that I use and have back-tested on indices are only just a bit better than break-even when counter-trend entry signals are ignored: but they pay very well if these are included. Severely back-test your systems before you exclude counter-trend positions, they could be your biggest earners as long as you have a strict and sensible stop-loss.
Click to expand...

Many thanks for your advice.
While I'm not sure if I correctly understand your point, but I need to point out the following:

I try to follow trend, for example when trend of eurusd is up, I only look for longs. I don't take short positions on minor correction. I only go short when my analysis suggests that trend has reversed. Frankly speaking, this is the hard part, identifying corrections from reversals :(

Regarding back tests, I have performed limited back testing and real trading of this method (considering that it is discretionary) with promising results. However, I intend to perform an extensive back test for about 10 years of eurusd, gbpusd, usdjpy and audusd pairs.

any further comments will be appreciated.
 
trader_d said:
Many thanks for your advice.
While I'm not sure if I correctly understand your point, but I need to point out the following:

I try to follow trend, for example when trend of eurusd is up, I only look for longs. I don't take short positions on minor correction. I only go short when my analysis suggests that trend has reversed. Frankly speaking, this is the hard part, identifying corrections from reversals :(

Regarding back tests, I have performed limited back testing and real trading of this method (considering that it is discretionary) with promising results. However, I intend to perform an extensive back test for about 10 years of eurusd, gbpusd, usdjpy and audusd pairs.

any further comments will be appreciated.
Click to expand...


You have it, distinguishing corrections from reversals is very difficult. Firstly you have to have a rigorous method for defining trend direction - when in reality, the vast numbers of market players each with their own positions, ambitions, time frames etc. make a single trend impossible to call. (If you are going to filter signals based on current trend, you have to use a fixed and objective gauge for this, so as to ensure in your backtesting you're not relaxing your view of trend direction to suit the outcome and sub-consciously massaging your own results.)

In any case, secondly, no trend is unbreakable and continues infinitely, so whatever hard and fast method for defining trend is used, eventually it will fail. If you can plan a asymmetrical position management, such that your stop is always fixed at X pips, but your profit target can be moved out to 2x or 3X or 10X etc. pips according to price action, why do you need to filter out the counter-trend signals at all?

Thirdly, these days we don't have to ignore counter-trend signals. If your filter system is that good, you could buy or short the filtered-out signal. The trend-following-only positions rule came from a time when we could only buy, and the costs of getting out if wrong were steep, forcing a dubious position to be held because, as a result, the owner couldn't afford to get out (especially if they might have to get back in again later) and couldn't afford to hedge. Nowadays, trade overheads are very small and you can trade both ways on a modest account. A more flexible and nuanced approach is now possible and could be much more profitable. Backtesting your chosen methods and markets will confirm or deny overall profitability, but still keep the focus on controlling how much you might lose.
 
eur/usd long position re-opened at 1.2884 s/l: 1.2760
 

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