ordinaryguy76
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Hello everyone !
Right, I'm going to post live trades here (DEMO ACCOUNT !) using a simple, semi-automated system, i.e. entry points and stop loss set upfront, but exit points can change. It's for trading S&P 500 1 trade per day.
I've read somewhere that newbies should start from FTSE100 as it's easier to trade, but I did not find FTSE to be easy. Also, I was not profitable with this system when backtested over a couple of years for FTSE100. S&P 500, on the other hand, seems to generate a steady stream of winners (47% wining trades and overall positive balance). Next thing is, this system requires action at the market trading hours close. I could not do that for FTSE as I would be leaving work and driving home at the time.
The system decides whether to buy or sell depending on price patterns from previous 4 days. I've tried 2 and 3 days, but results, although still profitable, were worse. Did not have enough computing power/time to try 5 days yet
I will enter trades near / at the market close (e.g. 9 pm UK time). Might decide to avoid weekends, though, depending on test results.
Enter at market price.
Initial stop loss will be set to 100 pips.
If stop loss is hit, I am assuming that I was wrong in terms of direction, so I'll have order open at the same time as main trade but in the opposite direction, around 100 pips from the original order. This new order will have a stop loss of 200 pips.
So, maximum loss per day is set to 300 pips.
This system seems to work even with no stop loss (second trade is not set up), but overall profit is reduced.
There is one issue with backtesting. I used official open/high/low/close, so it does not take into account out of hours moves. Most probably, I will need to adjust my stops. Perhaps I will need to change entry time. I want to test whether the system will work in real environment as well as expected or whether I am talking utter bu****it...
Will I have patience to update this journal ? No idea, but will give it a try.
Right, I'm going to post live trades here (DEMO ACCOUNT !) using a simple, semi-automated system, i.e. entry points and stop loss set upfront, but exit points can change. It's for trading S&P 500 1 trade per day.
I've read somewhere that newbies should start from FTSE100 as it's easier to trade, but I did not find FTSE to be easy. Also, I was not profitable with this system when backtested over a couple of years for FTSE100. S&P 500, on the other hand, seems to generate a steady stream of winners (47% wining trades and overall positive balance). Next thing is, this system requires action at the market trading hours close. I could not do that for FTSE as I would be leaving work and driving home at the time.
The system decides whether to buy or sell depending on price patterns from previous 4 days. I've tried 2 and 3 days, but results, although still profitable, were worse. Did not have enough computing power/time to try 5 days yet
I will enter trades near / at the market close (e.g. 9 pm UK time). Might decide to avoid weekends, though, depending on test results.
Enter at market price.
Initial stop loss will be set to 100 pips.
If stop loss is hit, I am assuming that I was wrong in terms of direction, so I'll have order open at the same time as main trade but in the opposite direction, around 100 pips from the original order. This new order will have a stop loss of 200 pips.
So, maximum loss per day is set to 300 pips.
This system seems to work even with no stop loss (second trade is not set up), but overall profit is reduced.
There is one issue with backtesting. I used official open/high/low/close, so it does not take into account out of hours moves. Most probably, I will need to adjust my stops. Perhaps I will need to change entry time. I want to test whether the system will work in real environment as well as expected or whether I am talking utter bu****it...
Will I have patience to update this journal ? No idea, but will give it a try.
