My Trading Log

[o990l6mh]

I intend to use this thread as my way of logging my trades and to post my thoughts about what I've done well and more importantly, the mistakes that I identify.

Next post will state the system I intend to use, although it may be changed along the way.

[o990l6mh]

Just a quick reflection before posting my system:

After making quite a few pips on the EUR/USD over the last few days movement, I closed that trade yesterday and later opened another trade that seemed good:

EUR/CHF sell at 1.5727 approx 2400 GMT+1

However this morning as I checked, the trade was going against me and i decided to close it, thinking that it was a case of overtrading on to much self-confidence due to the previous very succesful trade.
As I'm checking now, I realize that patience would have had my trade now at +50 pips...

Why does it have to be so hard to STICK TO YOUR SYSTEM!?

[o990l6mh]

My system as follows:

Risk: max 5% of capital at any one time, no more than two trades going on at the same time. Lot size is adjusted to meet the risk condition.

Timeframe: Daily + weekly and monthly for trend overview
When work allows it, I will be looking for trades on the 4H as well

Trading Hours: Checking news, current positions and planning new positions roughly between 18-19 GMT, position opening and closing 22 GMT

Indicators: Bollingerband 16 periods and candlestick reading

Enter: When moderately to highly reliable candlestick pattern can be discerned on daily and the trade to be is in the direction of the larger timeframe trend

S/L: Place PCI (Power/Computer/Internet) stoploss 3 pips beyond Highest High or Lowest Low of Candlestick formation

T/P: Close 1/2 position at +30pip and move S/L to Break Even, Trailing Stop is placed together with T/P. T/P is placed at opposing Bollingerband.
Position is closed if Trailing Stop triggers or if T/P is reached

Currency pair: Any, if spread <10,
Focus will be on AUD/USD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/USD, GBP/USD, USD/CHF and USD/JPY
Profit Target: 20 pips/day
Leverage: 1:500, though only 1:100 on demo account due to limitation in demo
Broker: Alpari UK

All trading will be carried out on a Alpari UK demo account, until it becomes clear that my system either works or does not work.
Starting capital will be 1000 USD

[o990l6mh]

This thread is primarily for my own sake, but comments, advice and so forth is of course welcome.

I have already begun trading and in my next post I'll add those trades that have been done, and perhaps discuss them briefly as well, as some of them were not carried out well.

There's just one way to learn and improve and it's called learning by doing.

Good trading to all

[o990l6mh]

Trade #1

2008-12-10 BUY EUR/CHF 1.5612 23.55 GMT +1
S/L 1.5653
T/P 1.5705
2008-12-11 CLOSE AT T/P 12.02 GMT+1

+93 pips

Thoughts:
I acted on a morning star formation which appeared in a Bollinger squeeze. Though it might be admitted that I certainly didn't wait for confirmation, it went well.

[o990l6mh]

2008-12-10 BUY USD/CHF 1.1988 23.58 GMT +1
S/L 1.1847
T/P VOIDED
2008-12-11 CLOSE AT 1.1925 12.02 GMT+1

-63 pips

Thoughts:
In retrospect, I honestly can't say what I was thinking. It makes no sense at all this trade. Lesson - be focused and sharp if you're gonna trade
When i realized that this trade should never have been, I closed it at market.

[o990l6mh]

Oh my, it seems I just went from nothing at all to a newbie!

[o990l6mh]

I've made some changes to my system, but the principles remain the same:



Risk: Max 5% of account balance
No more than two simultaneously ongoing trades on the same account.

Timeframe: Daily, plus weekly and monthly for determination of overall trend and of important formations on larger timeframes

Trading hours: News catchup, checkup on current posistions and planning for new positions for about 1-2 hours between 19-22
Posistions opened as close to 00.00 as possible

Indicators: Bollinger Bands 18 periods along with candlesticks

Enter: When one of the following candlestick formations are identified on daily and its suggested direction agrees with trend on weekly timeframe:

Bearish:

Dark Cloud Cover
Evening Star/evening Doji Star
Three Inside Down
Three Outside Down
Bearish Engulfing

Bullish:

Piercing Line
Morning Star/Morning Doji Star
Three Inside Up
Three Outside Up
Bullish Engulfing

Continuation:

Bearish Falling Three Methods
Bullish Rising Three Methods

Stop Loss: PCI Stop Loss is placed 3 pips above or below Highest High or Lowest Low of formation

Take Profit: Target 1: Close 1/2 position at +120 pips. Move Stop Loss 120 pips. Place a 150 pip Trailing Stop.

Target 2: Trade is closed when Stop is hit

Currency Pairs: AUD/USD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/USD, GBP/USD, USD/CHF, USD/JPY

Profit Goal: 30 pips/day

Leverage: 1:500

Broker: Alpari UK

[o990l6mh]

This very slightly adjusted version of the daily system I will be looking to use for trading on 4H charts:


Risk: Max 3% of account balance
No more than two simultaneously ongoing trades on the same account.

Timeframe: 4H, plus daily and weekly for determination of overall trend and of important formations on larger timeframes

Trading hours: Whenever possible, especially every other monday

Indicators: Bollinger Bands 18 periods along with candlesticks

Enter: When one of the following candlestick formations are identified on 4H and its suggested direction agrees with trend on daily timeframe:

Bearish:

Dark Cloud Cover
Evening Star/evening Doji Star
Three Inside Down
Three Outside Down
Bearish Engulfing

Bullish:

Piercing Line
Morning Star/Morning Doji Star
Three Inside Up
Three Outside Up
Bullish Engulfing

Continuation:

Bearish Falling Three Methods
Bullish Rising Three Methods

Stop Loss: PCI Stop Loss is placed 3 pips above or below Highest High or Lowest Low of formation

Take Profit: Target 1: Close 1/2 position at +20 pips. Move Stop Loss 20 pips. Place a 25 pip Trailing Stop.

Target 2: Trade is closed when Stop is hit

Currency Pairs: AUD/USD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/USD, GBP/USD, USD/CHF, USD/JPY

Profit Goal: 10 pips/trade

Leverage: 1:500

Broker: Alpari UK

[o990l6mh]

Well, this is live, I just placed this trade. let's see how it goes.

2008-12-18 SELL GBP/USD 1.5035 23.27 GMT +1
S/L 1.5722
T/P 1.4920


Thoughts:
Acting on a Morning Star formation, not a perfect one but close enough, on daily timeframe. Pair is in downtrend on weekly, so the entry is valid.
Due to x-mas coming up I plan to close this trade when this weeks trading ends whether it's on + or -.
T/P was set 120 pips away for entire lot. Hopefully the trade will close itself with a profit tomorrow.
This of course screws up R/R ratio badly, which makes me think that I might have hesitated to do this trade on real money. Of course that means I should perhaps not have made it on demo money either, but it's difficult to resist the chance to test trade one own creation...
I plan to read Alexander Elders book, it's a lot about psychology and I'm understanding better every day what a huge part of successful trading that is.
I even believe those that say it's THE hardest part of being a profitable trader. Gonna try to do some self-improvement there.