"New" Trader Introduction

[flavieng]

Hi there,

I am 24, student in MSc FInancial markets and currently FX broker in London for an internship.

I used to trade a lot long time ago, using only fundamental analysis. After a break of 1 year (at least) I choosed to come back on the market.

I opened a demo account and know I want to associate my fundamental knowledge to technical tools. I started my account recently but I found my strategy to trade.

I am writing you to share experiences and knowlegde regarding the market.

I am recording all my trade in a trading book to learn quicker and better.
If you want to have a look :

My FXperience - Trading journal

I would be very happy to learn from anyone but only constructive critics will be accepted.

Thanks everyone for the time you spend to read the new thread and hope to discuss more with you all late.

 

[The Leopard]

Thanks
As an experienced trader perhaps you would like to reply to the many questions on my thread.

His experience doesn't count - it wasn't on demo.

 

[flavieng]

Yes I was on a demo account - and still trading on demo. (As a student = no money!)

But I implemented rules and I am doing it seriously, as it was a real one in order to progress quickly !

 

[flavieng]

And btw, I think I have more things to learn than things to teach !

 

[flavieng]

I created a blog to record all my trades and some analysis.
I find this better than writing on word or excel, I can combine Graphs and comments.

Do not hesitate to comment or to give your feedback about it

My Trading journal

Thanks in advance for your help!

 

[flavieng]

ANyone has an opinion about my trading strategy ? Good or bad it doesn't matter, I am here to improve my trading and to help as much as possible people who need to.

 

[Enzzo]

I implemented rules and I am doing it seriously, as it was a real one in order to progress quickly !

Hi Flavieng..
Good way to go from the beginning...
Keeping a journal/stats on your trades, and review then frequently, will speed up more than you think your learning process to avoid repeating same mistakes over and over....
And implement rules for every possible "outcome" would make you trust your method, even more, as you have all mostly planned before hand to react appropriately to every situation...
About the method.... If you can resume it right here, it would be a lot easier to comment without going into the individual trades....

 

[flavieng]

Hi Enzzo,

Thank you for your answer.

You will find my trading strategy below. But I am making some exception depending on fundamental situation or data to be published. Indeed, as I am better in fundamental analysis.


Type of trading
Day trading and Swing trading

System type
As my time frame is quite long, I will also use data expected and published so a big part of fundamental analysis will be used
Technical analysis to set up entry and exit
Manual

Pairs traded
G7 crosses

Timeframes
30M - 1H - 4H

Risk
Risk level < 3%
Risk/reward ratio > 1:1

Indicators
Fibonacci retracements
EMA 5SMA 15
SMA 100
SMA 200
MACD (12, 26, 9)
RSI (14)

Additional rules
Do not trade during speeches and Monday morning
Do not trade Friday afternoon (depending on what happened during the week)
Do not trade after 4 losing trade in a row

Trading Rules
I will always be using signals AFTER the current signaling candle is closed.
1. Never open a trade if price is less than 25 pips away from 100 SMA or 200 SMA

2. Do enter the market when price has crossed either 100 SMA (expect large move) or 200 SMA (expect very large move) and only after the current candle has closed on the opposite side of the SMA.

3. Set stop loss initially at 50 pips. Look for nearest support/resistance level and adjust it accordingly (Fibonacci retracements) – it could grow up to 70-90 pips but it should not be less than 40 pips. Anyway this measure is taken only to save me from a sudden “exploding market”, in all other cases it will not be hit as the system will take me out from the trade earlier.

4. Always have a look to see the position of the RSI – too overbought or oversold : no trade

5. Enter in the direction of 5 EMA once two conditions are met:


Entry rules
1) 5 EMA crosses 15 SMA “permanently” – which means the current candle is closed and lines are “locked” and will not move while we make a decision to open a trade.

2) MACD lines are crossed, and the current candle is closed.

The 2 crosses do not have to happen simultaneously. MACD lines can cross earlier than EMA and SMA or shortly after, but there should be no more than 5 candles in between 2 crosses.

If “2-cross” condition is not met – no entry.

Exit rules
Exit with the same rules as for entry: when two crosses are in place. If we have only one cross – we are still in trade.

Profit target
a) I can set TP to a desired amount of pips and followed with trailing stop further once the target is reached.
b) Use more or less 60/90 pips profit target (Adjust regarding the near supports and resistances) – do start chasing the price with trailing stop after gaining 50 pips.(According to a Risk/reward ration > 1)

Other points
Do not be too greedy !
Check last Highs and Lows to set up TP/SL, too wide is too difficult for small periods.
Use Fibonacci retracements to set up SL and TP


Feel free to comment

 

[Enzzo]

Check last Highs and Lows to set up TP/SL, too wide is too difficult for small periods.
Use Fibonacci retracements to set up SL and TP

Hi Flavieng..
It looks like you have most of the aspects ruled.... which is quite good imho...
I am not an expert regarding Indys as I don't really use them that much and only occasionally, but it looks to me that you basically try to enter on cross of MA's and MACD when RSI is not that much oversold/bought as for your reading....

Do you enter right when crosses happen on candle closed?...
if so, I would recommend you to take a look to get into the move on a pullback (if you want in the lower tf's) after the crosses are met as per your conditions, rather than right on the crosses, as your SL will be much smaller allowing you to position size better, and even you can filter some "losers" if you create some rules for the pullback as well....
Of course some moves here and there will be missed by doing this, but I really think they will be well compensated on the long run......

Apart from this I would be very cautious setting my SL's on swings high/low, as those spots are the favorite ones for big guns to trigger them just to get liquidity, trap retail traders and going the other way around after it.....so you will see very often how your SL is hit (even when it was a wide one), just to be the very bottom/high of the move/day/etc.....

do not take all this as "the truth", of course... this is only my personal opinion, way to understand the market, and my personal experience.... you know,there are many ways to skin a cat... hehe

Hope it helps you a bit