Keitsuke Trade Journal

[keitsuke]

Hi everyone

After six months of demo trading and one month of live trading, I have decided to create a trade journal on Babypips.

I have taken what I have learnt from the School of Pipsology as well as various veterans of this forum and formulated that knowledge into a trading system that I am comfortable trading with.

By posting a trade journal, I hope to not only track my own performance, but also to persist with my ongoing education in forex through this forum, as well as benefiting from valuable feedback from fellow traders.

I hope that over time, this trade journal will reflect gradual improvements in my trades.

I will provide a summary of my trading system in the next post.

Keitsuke

[keitsuke]

My system is very simple. Below are some parameters first:

Time frame:
H4, H1, and M5.

Indicators:
H4 – SMA, stochastic, trend lines.
H1 – Bollinger bands, stochastic.
M5 – Starc bands.
And the most important indicator of all – Candlesticks!

Maximum leverage:
10:1

Maximum risk exposure:
2% of equity

H4 is used to gauge the general trend. H1 is used to identify reversal patterns as well as retracement of continuation patterns. And M5 is used for entry.

My system is not really a system; it’s a trading style, for now. As I gradually gain more experience in trading, I will change my trading style where appropriate, but for now I’m laying down the foundations.

I read from a particular technical analysis book while I was studying forex the following quote. It goes along the lines of;

“The market will continue to move in one direction (up, down, sideways) unless an external force (such as economic news, fed speeches, significant world events) forces it to change direction.”

It may seem blatantly obvious what the quote is suggesting, however, I can guarantee a lot of new traders out there, knowing the above holds true, will try to contravene the statement by bottom/top picking. I know I certainly have, and it had cost me dearly in some trades, which is why it forms the foundation of my trading style.

Here’s my trading style in a nutshell;

1. Trend analysis using H4 – this determines the direction of my trade, as well as my T/P level.
2. Candlestick patterns using H1 – this determines whether there is a trade setup based on reversal patterns.
3. Bollinger bands and fib retracement levels – used to determine the level of risk of a particular trade setup in 2. Fib also used as S/L and T/P targets.
4. Entry using starc bands on M5.
5. S/L and T/P are used upon entry. S/L does not change, but T/P may change depending on how the trade pans out.

So here goes.
I welcome any questions or feedback from fellow traders, whether positive or negative.


Keitsuke

[keitsuke]

Short EUR/JPY 161.95

S/L 162.24

T/P 161.00

Evening star pattern on H1, with H4 trending down.

[keitsuke]

Stopped out.

-29 pips.

[tymen1]

Originally Posted by keitsuke

Stopped out.

-29 pips.

A pity!

I know you are using your own system.

I would not have traded that pattern.
It is better to trade only green stars until you have more experience.

Stand by for the release of my 4 levels of candlestick trading, Scalping, Basic, Intermediate, and Advanced.
These are protected against such losses by using a break even principle.

All the best with your trading.



As a protection, if you continue to have losses and it gets too much for you, then I recommend you adopt the Basic method that I will outline in my thread.
I have examined your chart carefully.
You would have made a profit with my basic method, even with a red star!

A small tip for you :

When posting charts, use a higher magnification so that what you intend to show - the evening star - is very clear.
Then your entry, stop loss etc will be very clear also.
All those candles to the left of the evening star are really irrelevant.

[keitsuke]

Originally Posted by tymen1

A pity!

Thanks for your advice Tymen. I am always keeping an eye on developments in your candlestick thread. I have much to learn from you. Looking forward to your new methods!

Keitsuke

[Ray_1]

Originally Posted by keitsuke

Stopped out.

-29 pips.

From what I learned from tymen1 thread, the evening star pattern was not a quality pattern as it did not touch the Bollinger band except the wick of the middle candlestick. It is better to take a short pattern that occurred on the upper Bollinger band.

[keitsuke]

Low volume due to UK Summer Bank Holiday.

No trades today.

[keitsuke]

EUR and GBP dropped like a stone due to worse than expected German business confidence. I missed the initial move, so looking to short on any significant retrace.

[keitsuke]

Short USD/JPY 109.68

S/L 109.96

T/P 109.10

Double top, evening star.