journal of trader formally known as wasp

[Jyde]

EDIT: Actually 3 things obviously, the other alternative is it continues up which is always preferable

Haha, indeed it is!

So if I understand you correct, in the unlikely occurance that you will have an opposing signal, you will simply stop and reverse trade?

Or did I misunderstand and you are actually saying that the possibility simply does not occur in your strategy, i.e. being ex. long and a short signal pops up?

 

[wasp]

Yep, if I get an opposing signal I stop and reverse. If it goes nowhere then signals the same direction again then, thats annoying but, I haven't a clue whether the next signal will or will not work so I just take them regardless and rely on the probabilities. With a daily maximum to limit downside its all happy days.

 

[Jyde]

Makes a lot of sense (though whipsaws are clearly an anoying fact of trading).

Thanks for your answers. Hope the good results continue!

 

[CYOF]

A thought on the DOW..........

Reading the old darkside threads and thought I'd give it a go... No money on the line, just looking :cheesy:

Just thought a follow up might be good - where next ? - will the trend resume or pullback continue - if back by how much - will it test the 23.6% or fall through and test the38.2% - OBV is falling off and trendline break to the downside may happen next week - but then again it may not - we can never really know what the market will do next, but we should be prepared to trade it no matter what way it goes.

Regards,

 

[wasp]

Just thought a follow up might be good - where next ? - will the trend resume or pullback continue - if back by how much - will it test the 23.6% or fall through and test the38.2% - OBV is falling off and trendline break to the downside may happen next week - but then again it may not - we can never really know what the market will do next, but we should be prepared to trade it no matter what way it goes.

Regards,

My attempts on the DOW have always lead to dissapointment which is why I tend to stay away. In hindsight I would like to think I'd have been short of the top when it reached the top of the channel (1) and I'd now be short until we get to the S/R (2) and lower run of the channel.

I think that area (3) will be very imortant and a break or bounce would be the decider for a continuation of the upward trend or a change to down. I am very much a 'trade what you see' trader and the pice action in that area would be the decider for me.

 

[wasp]

For Trendie...

 

[trendie]

Top Bloke

greatly appreciated, wasp.

 

[CYOF]

My attempts on the DOW have always lead to dissapointment which is why I tend to stay away. In hindsight I would like to think I'd have been short of the top when it reached the top of the channel (1) and I'd now be short until we get to the S/R (2) and lower run of the channel.

I think that area (3) will be very imortant and a break or bounce would be the decider for a continuation of the upward trend or a change to down. I am very much a 'trade what you see' trader and the pice action in that area would be the decider for me.

Hi wasp,

Firstly, as your journal is for FX (I should have read your first post) I will not post any more details in relation to the DOW after this post.

A question: how has your trading developed since you started this journal?

Have you found the posting of your details to be of benefit, or did they have the opposite effect?

Just wondering, as I am considering starting a journal but I am not sure at this moment if it will be of any real benefit to me, or those who participate?

Regards,

 

[wasp]

Hi wasp,

Firstly, as your journal is for FX (I should have read your first post) I will not post any more details in relation to the DOW after this post.

A question: how has your trading developed since you started this journal?

Have you found the posting of your details to be of benefit, or did they have the opposite effect?

Just wondering, as I am considering starting a journal but I am not sure at this moment if it will be of any real benefit to me, or those who participate?

Regards,

Hi CYOF,

I don't mind looking at the DOW in my journal at all. The original purpose has achieved its goal and is open for anything now really. Although, if you are to start a journal, then it will make sense to obviously look at it in your own thread if it is on your shortlist.

As for the journal and its uses, I'd say yes, immensely. I would recommend it to anyone but we are all different and its not to say it will always work for everyone. I was having issues with discipline which is why I started it. Not for the pursuit of abandoning that 3 letter word Socrates is searching for on another thread but to get me to prove it works. It was all very well keeping a journal in my drawer but it was too easy to cheat. On here, everyone could see my strat and know what I should have been doing and that made me unable to cheat and it did the job. I knew how much stick I'd get here so didn't deter from the plan at all. At the end of the month trading said strat. I had proved it worked and gained the required discipline in unison and since then, things have been great.

HTH and look forward to your journal hopefully

wasp

 

[Charlton]

Hi CYOF,

I don't mind looking at the DOW in my journal at all. The original purpose has achieved its goal and is open for anything now really. Although, if you are to start a journal, then it will make sense to obviously look at it in your own thread if it is on your shortlist.

As for the journal and its uses, I'd say yes, immensely. I would recommend it to anyone but we are all different and its not to say it will always work for everyone. I was having issues with discipline which is why I started it. Not for the pursuit of abandoning that 3 letter word Socrates is searching for on another thread but to get me to prove it works. It was all very well keeping a journal in my drawer but it was too easy to cheat. On here, everyone could see my strat and know what I should have been doing and that made me unable to cheat and it did the job. I knew how much stick I'd get here so didn't deter from the plan at all. At the end of the month trading said strat. I had proved it worked and gained the required discipline in unison and since then, things have been great.

HTH and look forward to your journal hopefully

wasp

Wasp

You know I have been an admirer of your journal and also Firewalker's. I think both have been an inspiration t others. What is the 3 letter word ?

Charlton

 

[CYOF]

Cheers wasp,

Thanks for the feedback - maybe the journal was the best way to go from day 1 - instead of trying the ctm forum!

Well, no sense in looking back - always look forward.

Regards,

 

[firewalker99]

Wasp

You know I have been an admirer of your journal and also Firewalker's. I think both have been an inspiration t others. What is the 3 letter word ?

Charlton

Ego

(PS: Thanks for the remark)

 

[wasp]

Cash machine running dry...

Adapt and succeed....

I've had a good run in the 2 months since finishing this journal. The original reason was my discipline to my rules. In part that was down to information overload and seeing 72 reasons to be long and short simoultaniously after reading too much and the other reason of course being fear and greed. After having the discipline to do it and do it right on the journal I was a happy man and like I say, enjoyed 2 good months...

I had no issues with entries, or pulling the trigger as such, but it was the exits. The exit strat is based upon trailing the stop behind what statistically proved to be areas of S/R and giving a bit of leeway so as to get the best of each move. I used to find myself exiting after not breaking s/r immediately and not being patient enoug to wait it out for the next to cross. After the month on here I cracked it and have been letting it run away with my trailing stops as they should...

Nothing stays the same though... Over the last 2 weeks the complete opposite has been happening, I have been doing as my plan and the market has not been spiking through S/R but not printing new candles above and out of the last 20, at least 2/3d's have not broken the S/R and pulled back to the previous S/R.. this is all fine and good but alot of those trades have seen 40, 50 pips to revert to 20 or less! Basically, the complete opposite if 3 months ago and what I stopped myself from doing then, I need to be doing now in order to get the most out of each trade!

A lesson learnt, nothing stays the same forever and no matter how much effort and how much you streamline and how much you apply discipline, nothing lasts forever.... Back to the drawing board to have a good butchers at my exits.....

Que Sera, sera....

 

[ampro]

If your exits are all you need to concern yourself with, then you're on the right track.

You've obviously built a strategy which suits your (trading) personality & currently forms the backbone of your specific instrument deployment.

The fact you're retaining & maintaining profit with this particular method, under ever changing market conditions, signals that you have a good grasp on your money/risk profile.

I wouldn't mind betting that's the major key to your progression thus far.

Account preservation (particularly in tight & difficult market environments) is crucial.

If you have a tight rein on this strat & you begin to recognize when this method of execution is under performing, then it'll be a whole lot easier to tweak it or adapt it to reflect the change in market behaviour.

Nice position to be in.

 

[CYOF]

To add to ampro's points:

Quotation (not exactly but close enough) by Barry Rudd:

"remember, these patterns are not present all of the time"

All markets move UP - Down - Sideways, each with different degrees of movement.

One should only trade the patterns that have proven to be successful - this is one of the drawbacks that I think may be present in automated traded systems - wasp, correct me if I am wrong but I am presuming that you are using a modified Grey1 automated system.

An automated system, in order to replicate itself, will have to be re-adjusted depending on the degree of movement in relation to the initial parameters.

This may require several tweaks of the system so that the end results are consistent.

Just my thoughts!

 

[wasp]

If your exits are all you need to concern yourself with, then you're on the right track.

You've obviously built a strategy which suits your (trading) personality & currently forms the backbone of your specific instrument deployment.

The fact you're retaining & maintaining profit with this particular method, under ever changing market conditions, signals that you have a good grasp on your money/risk profile.

I wouldn't mind betting that's the major key to your progression thus far.

Account preservation (particularly in tight & difficult market environments) is crucial.

If you have a tight rein on this strat & you begin to recognize when this method of execution is under performing, then it'll be a whole lot easier to tweak it or adapt it to reflect the change in market behaviour.

Nice position to be in.

Thanks ampro,

It is one thing to be in a pretty good position whereas a couple of changes in un ideal market condition should make all the difference, its not comforting though.

I do have a good grasp of my money/risk profile yet this throws a spanner in the works somewhat. It is fortunate I have had a good couple of months behind me but, now I have to decifer the best step forward, and have nothing more than the last 2 weeks different conditions to decide on my next move.

It will be an awkward and interesting 2 weeks deciding if it is a change in the market, or just a couple of weeks with low profitabiltiy, and an increase in volitility over the next couple of weeks will get the old strat back on track.

To add to ampro's points:

Quotation (not exactly but close enough) by Barry Rudd:

"remember, these patterns are not present all of the time"

All markets move UP - Down - Sideways, each with different degrees of movement.

One should only trade the patterns that have proven to be successful - this is one of the drawbacks that I think may be present in automated traded systems - wasp, correct me if I am wrong but I am presuming that you are using a modified Grey1 automated system.

An automated system, in order to replicate itself, will have to be re-adjusted depending on the degree of movement in relation to the initial parameters.

This may require several tweaks of the system so that the end results are consistent.

Just my thoughts!

Hi CYOF,

I don't use Grey1's strategy, I have no idea what it is apart from something related to VWAP and MACCI? I use a simple MA crossover strat and support / resistance for exits. Well, maybe a tad more than just that but simple nonetheless.

An automated system, in order to replicate itself, will have to be re-adjusted depending on the degree of movement in relation to the initial parameters.

This may require several tweaks of the system so that the end results are consistent.

Just my thoughts!

This is part of the problem, I had done all that prior to the journal and throughout the journal and afterwards, for the las 2 months, it has been fine. It has been only the last 2 weeks where things have changed, and I either need to 'tweak' or sit thorough this and see if things change back over the next 2 weeks.

Only time will tell... still, bloody annoying all the same

 

[SOCRATES]

Hi CYOF,

I don't mind looking at the DOW in my journal at all. The original purpose has achieved its goal and is open for anything now really. Although, if you are to start a journal, then it will make sense to obviously look at it in your own thread if it is on your shortlist.

As for the journal and its uses, I'd say yes, immensely. I would recommend it to anyone but we are all different and its not to say it will always work for everyone. I was having issues with discipline which is why I started it. Not for the pursuit of abandoning that 3 letter word Socrates is searching for on another thread but to get me to prove it works. It was all very well keeping a journal in my drawer but it was too easy to cheat. On here, everyone could see my strat and know what I should have been doing and that made me unable to cheat and it did the job. I knew how much stick I'd get here so didn't deter from the plan at all. At the end of the month trading said strat. I had proved it worked and gained the required discipline in unison and since then, things have been great.

HTH and look forward to your journal hopefully

wasp

You obviously misunderstand....I am not searching for the word at all....I know all about it and do not include it in my trading....the object of the excercise is to bring it to the attention of those who need it....to search within themselves and to find it and deal with it properly.....hence the allegory of the moth above the flame.... ...that's all.

 

[wasp]

You obviously misunderstand....I am not searching for the word at all....I know all about it and do not include it in my trading....the object of the excercise is to bring it to the attention of those who need it....to search within themselves and to find it and deal with it properly.....hence the allegory of the moth above the flame.... ...that's all.

Ahhh Socrates, I'm touched, I didn't think you read my journal!?

I am aware you do not include it in 'your trading' and knew exactly your point of your contribution to the thread, hence me staying out of it.

 

[SOCRATES]

Ahhh Socrates, I'm touched, I didn't think you read my journal!?

I am aware you do not include it in 'your trading' and knew exactly your point of your contribution to the thread, hence me staying out of it.

I do not normally read any of the journals posted here. It was brought to my notice by another member who spotted it.

 

[egro1egro]

I agree this is quite a remarkable journal. It was quite useful for me, as I had a similar system, although with a little more twist in it concerning entry algorithm ( as I call it).

When I enter on a break-out of a bar/level/whatever, I move stop-loss to break-even at the end of bar period (the bar which triggers my entry stop). If it is not in profit yet then I close position at market. It gets me out of the game very often or even prematurely, but on the other hand, keeps my losses small and almost always allows me to enter on a strong momentum into a trend.

I was also playing with SAR, but not on the initial stop-loss - only on an opposite signal later or on a stop-loss after the first bar. It suits GBPUSD pair perfectly as it has trends with strong momentum at the beginning of almost every trend, but refuses to work on EURUSD which is not volatile enough for this sort of initial moment.

As for premature exit problem you mentioned. I use 3 things:

1) I put initial t/p limit order which is kept for some time in the beginning of a trend. It will catch sudden windfall profits. But of course prevents you from getting even bigger windfall profits-)):

2) if the initial t/p order is not taken during some short period of time, I can either remove it or move further and then rely on stop-loss which is trailed in a similar to yours way.

3) I can exit at market at the moment when I feel the moment is exhausted. This can be tuned to a particular time-frame. It is a very interesting approach. If you get a true trend the price will make 2 or 3 Ross Hook on its way. You can exit either on 2nd/3rd hook, or exit on a failed hook, when the price tries to resume the movement but fails to make a new high/low. On news you can see those hooks most likely on 5 min TF, sometimes on bigger TFs. But on bigger TFs Ross Hooks are not that clean and frequent. It is an interesting observation, but perhaps many traders would laugh at it - don't know really.

That is my 5 cents.