journal of trader formally known as wasp

[wasp]

What became of ERIC

After dropping back through the S1 it just clipped the top of the downtrend line and after a few days hovering it has now headed back up. For a larger term view the long would be working out nicely now. So it was good to see the downtrend line held but a shame about the S1.

I'd like to think if I had still been watching it I may have re-entered as it stalled and price and volumes picked up again but c'est la vie...

Very interesting to see how its worked out though.

 

[wasp]

price action

One thing I have noticed when running and exiting my positions is that they are based on S/R and try to catch near the top and bottom of a move. I then sit and wait for my next MA cross signal.

Obviously this has lead me on to... If this a reason to exit, why not a reason to enter? Initially thoughts went to the problems of overtrading and trying to picking tops and bottoms but further tests are looking promising.

More to be done and deciding in real time which is the relevant S/R but the last 2 days shown are not bad... It'd require being in virtually the whole trading period and seems a bit too good at the moment but time will tell...

Something to test along side normal trading...

 

[dbphoenix]

One thing I have noticed when running and exiting my positions is that they are based on S/R and try to catch near the top and bottom of a move. I then sit and wait for my next MA cross signal.

Obviously this has lead me on to... If this a reason to exit, why not a reason to enter? Initially thoughts went to the problems of overtrading and trying to picking tops and bottoms but further tests are looking promising.

I was wondering when the old SAR would occur to you. If you do it right, the SAR can be the closest thing to an insurance policy there is in this trading life and can virtually eliminate losses (note I said "virtually"). But if you do it wrong, you can lose twice as much twice as fast and do severe damage to your trading account.

So study it, yes, and play with it, but be extremely careful and test the hell out of whatever tactic you employ that incorporates the SAR. It's like a glamour girl with syphilis.

 

[wasp]

I was wondering when the old SAR would occur to you. If you do it right, the SAR can be the closest thing to an insurance policy there is in this trading life and can virtually eliminate losses (note I said "virtually"). But if you do it wrong, you can lose twice as much twice as fast and do severe damage to your trading account.

So study it, yes, and play with it, but be extremely careful and test the hell out of whatever tactic you employ that incorporates the SAR. It's like a glamour girl with syphilis.

I had thought of it before but like you say, it can be a dangerous thing and can cause alot of problems if wrong but great if right.

I think for the meantime they will be watched but not acted on yet!

If I can start getting good at them, I could get rid of the MA's!

 

[rols]

I had thought of it before but like you say, it can be a dangerous thing and can cause alot of problems if wrong but great if right.

I think for the meantime they will be watched but not acted on yet!

If I can start getting good at them, I could get rid of the MA's!

Hey don't go a fixing what ain't broke for a quick rummage with Sif..... :cheesy:

Well done on results!

 

[laptop1]

Wasp

I am thinking of starting a Journal trading the EUR/USD 1 to 4 trades a day from 11 am to around 7pm.Live calls.....I dont like getting up early.

It looks like you are using displaced moving averages and entering a trade on the opening bar of the moving avr cross, what is you account size trading this method?...I understand you use a 20 pips stop at the start of a trade. The only thing that may let you down is trading the opening bar based on moving avr cross. Even more so if you are using displaced averages but good luck to you.

 

[wasp]

Wasp

I am thinking of starting a Journal trading the EUR/USD 1 to 4 trades a day from 11 am to around 7pm.Live calls.....I dont like getting up early.

It looks like you are using displaced moving averages and entering a trade on the opening bar of the moving avr cross, what is you account size trading this method?...I understand you use a 20 pips stop at the start of a trade. The only thing that may let you down is trading the opening bar based on moving avr cross. Even more so if you are using displaced averages but good luck to you.

Good stuff, I'll keep an eye out for it... I don't bother with live calls as thats not really my goal or reason for the journal.

As stated above, at the moment I am trading £20 per point. I know what you are saying regards to to the displaced moving average cross but its working out well so far...

good luck with your journal.

 

[wasp]

Sar

Stop and reverse...

I'm probably miles behind in the 'damn how obvious way to trade' but hey.... Something I will trade alongside my usual strat just to see if it works out any better or worse...

It looks strangely nice having a blank chart for a change... I'm not keen on the idea of breakouts as IMO thats getting in too late... Obviously there is always the problem of whether the same lines would have been drawn in real time...

A few examples from a random week

 

[Windowsill]

Changing Markets conditions used to be my main concern.

To put the following in context,I have an ugly mechanical system where i place a trade at 4pm and thats it, as I can only spare 10 mins a day on the computer. I have now 179 trades completed.

I also worry about 14 losses in a row! I have found that if i have just two losses in a row then I don't take the 3rd trade, If this would have also been a loss then I don't take the 4th and so on.

Introducing this to my spreadsheet makes a very small negative difference to the cumulative total.(96 points down out of total 4090)
In fact its a slightly positive (+87)if i treat each Monday as a fresh start.

For me this has affected 11 trades.

This gives me the comfort though knowing i cannot lose endlessley.

For you the figure will obviously be different, but I found it quite surprising & useful tool.

 

[laptop1]

Windowsill

If I had 2 losses in a row.I would take the third trade.I have done some work on this,PM see if I can help you.

Whats the most losses in a row, have you had?

wasp
What is you account size, trading this method.

 

[wasp]

wasp
What is you account size, trading this method.

enough! :cheesy:

 

[laptop1]

enough! :cheesy:

It a simple question. Is it 15k 40k 60k 90k account.I understand you are trading with a spread bet firm.

 

[wasp]

It a simple question. Is it 15k 40k 60k 90k account.I understand you are trading with a spread bet firm.

It is a simple enough question but one I don't particulary wish to divulge on a public forum. I have +6 figures at my disposal which I hope answers your question. I was trading with Capitalspreads but I have now split my accounts between Oanda, Interactivebrokers and CS.

 

[laptop1]

OK mate. I know some are trading 20 quid and more on a 5k account, this is madness, but as you say you have got 6 figures this would cover you risk of 0.5% on you account on a loss....trading 20 quid a point one would need 90k

I think I read you have a stop in place of 20 pips on entry. Personally I think a 20 point stop worked better on the EUR/USD. cable over reacts you would get stopped out more..... EUR/USD is more stable. Try testing you method over 20 days on the EUR and see what you come up with. you may be pleasantly surprised

 

[wasp]

OK mate. I know some are trading 20 quid and more on a 5k account, this is madness, but as you say you have got 6 figures this would cover you risk of 0.5% on you account on a loss....trading 20 quid a point one would need 90k

I think I read you have a stop in place of 20 pips on entry. Personally I think a 20 point stop worked better on the EUR/USD. cable over reacts you would get stopped out more..... EUR/USD is more stable. Try testing you method over 20 days on the EUR and see what you come up with. you may be pleasantly surprised

Trading that size on an account that small would be stupid. Not only would you have the problems of too many losses wiping you out quickly, that same issue would cause too many discipline and emotional problems. That is one factor I can happilly exclude from my list of issues.

Worry not, I have tested my strat enough to know that I can place my trades with a 20 pip stop, sometimes smaller. The EUR is that much smoother and probably safer with a smaller stop but, its all in relation, the good moves are then smaller too!

 

[wasp]

Interesting stuff

I'm liking this SAR malarky...

Although the MA cross strat is working well with cable I have wanted to have the ability to trade other markets and this is looking promising. Alot of fine tuning required but interesting all th same at the moment...

Dow and Gold charts...

 

[wasp]

Strat 2

Setups and criteria:

>Start ready at 6:30am
>Mark on all S/R levels produced overnight and any others within 200 pip range (only those with no price movement between level and current)
>Wait for the first cross over a S/R and pullback through
>Enter after 5/10 pips past or new candle* subject to change through live testing
>Trail each position behind S/R levels when new candle produced above/below
>Do the opposite when cross back through in other direction
>No targets and a maximum of 20 pip stoploss (incl. spread) regardless
>Keep going all day whilst trading Strat. 1
>If and when stopped out, await new set up the same

 

[wasp]

spot the difference

 

[dbphoenix]

Again, wasp, be careful. Doing this in real time is a whole 'nother matter. Have some very specific reversal rules in place. And I mean VERY specific.

 

[wasp]

At the moment, I shall trade my current plan as per usual and demo or small size trade the SAR theory at the same time.

Seeing how the MA's produce near the same results anyway, the only reason would be so I could then trade other markets also and maybe remove the MA's but at the moment, I really don't see why I would want to.