PerchTird DNA Journal

Beginner Questions
1

I’ve copied the trading plan from xXTrizzleXx, as it nearly perfect for ME.
I’ve changed just a couple items - and here is my version.

Credits due to Trizzle and Tymen for the DNA plan. And others for very worthwhile contributions to the threads involved. THANKS to ALL.

I have a twofold goal here - I want to discover a ‘winning’ I refer to as ‘Non-Loss’ percentage when I trade.

and obviously, whether or not I am profitable.

Without Further Ado - The Trading Plan

Markets
Several currency pairs are chosen to increase the probability of detecting trades:

-EUR/USD
-GBP/USD
-AUD/USD
-GBP/JPY
-EUR/JPY
-USD/JPY
-USD/CHF
-USD/CAD
-EUR/GBP
-GBP/CHF
-EUR/AUD
-EUR/CAD

Position Sizing

A strategy using 3 contracts will be used for all trades. The sum of all 3 contracts will be no more than 3% using 1% for each of 3 open positions, which constitue a trade; of the account balance, as evaluated at the beginning of each trading period, which is 1 week.

Time Frame

The 4 Hour Timeframe will be traded. (possibly daily timeframe also)

Entries

Two Bollinger Bands are used, one with Standard Deviation set to 1.0 and the other set to 2.0.

Entries will be made employing a system which uses an Orthodox Count Back Line method.

Only begin drawing the CBL from candles which touch the Outer Bollinger Band. If the CBL extends too close to the Middle Bollinger Band, then cut it in half. (Too close meaning more than midway between Standard Deviation 1.0 Band and Middle Bollinger Band)

Bollinger Band bubbles and sausages will not be traded, until Point P has been reached, as they reduce the Win: Loss ratio. Point P is the point where the retrace of Price Action hits the Outer Bollinger Band.

Stops
Initial SL is 5 pips above/below the extreme candle.

Trailing Stop: as I am unable to babysit the trade, I have an automated Trailing stop as follows: this is for 4 hr time frame only.
Upon reaching 30 positive pips, a TS will be at 35 pips (hence a possible 5 pip loss yet, but will trail up to 60 positive pips stopping at a plus 25 pips this is considered BE) I am guessing typically the MID BB will be in the 30-80 pip range.
Also once price moves to plus 100, then again move the stop to plus 50.
All other points of interest will manually be monitored as best I can.

If you are stopped out INITIALLY, use the candle which stopped you out as criteria for another CBL entry. If however this second entry is stopped out as well, evaluate whether or not a Bollinger Band Bubble or Sausage has formed. If it has not formed, then feel free to enter once again. If it has formed, stay out of the trade until Point P has been reached.

Exits

The Middle Bollinger Band will be the site of TP 1.
The Outer Bollinger Band will be the site of TP2.
Let the final contract run, TP is set at 300 pips, for TP3. This allows either the time for me to get back to the charts and adjust manually OR if it gets to300 before I get a chance to look, then it most likely will be wise to TP.

Alternatively, you can use the Parabolic SAR to exit, as explained beautifully by Tymen, here!

EXIT ALL TRADES BY THE MARKET CLOSE ON FRIDAY!

2

Go for it [B]PerchTird[/B]!! :slight_smile:

Not only will you learn as you go along, but you will encourage and teach others to trade well also.

Not only that, but you actually teach yourself as you post!! :slight_smile:
(I know this because I am a retired school teacher).

If you continue this thread long enough, you will not only become an expert trader, but also gain Honorary FX Membership in the process.

I look forward to visiting you here every so often to see how you are going.
I wish you all the best on this thread.

So soldier on - [B]persevere and advance!![/B] :wink: :wink:

3

Honored to have you visit here. You and you’re comments are always welcome.

Test entry for monitoring trades, as I am not sure if I will post charts or not.

Pair Date Time Opened Mid/BE Non/Loss Loss % profit%
gbp/chf 40,373 0 2 2 X 100 0

4

Mnthly - severe downtrend, however price is near mid bb - and climbing - favor long.

Wkly - over long term - down, but last 7 weeks up; so favor long but nearing top of BB - nearing a point P - still favor long for now. (after checking 1 day chart, I changed my mind - see below 1 day description to keep it chronological)

Daily - last three days down - from top of BB - so looking to enter short if possible (Oh crap nevermind, in a daily sausage, so I am not looking to trade

deleted (but left here to know i did think this before and the thoughts were wrong)
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++±-- actually according to DNA, may have very recently entered short on a 2 CBL or even entered short a little earlier on a 1 CBL. So have an open position short??? OR - no I wouldn’t be short cause all above time frames say go long??? what are your thoughts?+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

4hrly - oh interesting - since this is the time frame I am looking at trading - it has hit the bottom BB and has a pinbar looking bar and either the 1 or 2 CBL is very close to each other - so on next 4 hr bar if a break long - I am in. (since this trend is obviously up) actually drew line at 1.5210 for entry point.

1 hr - o geez - this has already started the trend down, this ‘disagrees’ with my ah ha - nice entry on the 4 hr chart.

30 minute - been down - nearing a squeeze point - watch for entries ----- but which way??? ( I think short term - ( I was going to say short term is down, but I was wrong with that too - -there is nothing to say it has to be down)

15 / 5 minute - I consider both to be in a prolonged sqeeze - only the bold would be trying to trade ups and downs here - way to little pippage to substantiate a trading method.

5

Sorry about image quality, after I looked it’s not great - – -- but in this circumstance maybe it’s just fine?

Sorry I got sidetracked and didn’t post a specific question, and after re-reading, this sort of seems a bit rambling on about nothing -sorry for that.

The basic question is - is what I see what you see - is what I described what you would describe?

I don’t thing there is any sort of entry criteria met - -except maybe for the 4hr chart is getting close?

thanks again

6

Weekly/Daily Analysis - not sure how this will go -

G/U - many day up trend and 4 hr BB is at bottom - look for entry about 1.52400

G/J -daily range tween 135.75 and 131.600 - currently price is at 132.184 so very near bottom of range - watch for a 4 hr entry point (nothing near it now it’s at a walking point??)

E/J = daily range tween 113.2 and 108 - currently at 112.3 so in middle and 4 hr is also middle no entry now

E/U =- daily on an upper BB walk and 4 hr just broke this upper BB walk - no entry (however on shorter time frame looking to short??)

U/J = opposite E/U a lower BB walk and 4 hr just broke that walk - no entry for awhile

A/U - daily at/near mid bb and 4 hr last 6 ranging, but not in a sqeeze , no entry

E/G -daily possible upper bb walk - however 4 hr just broke that walk - no meaning - no entry just watch

E/C - interesting set here - daily is just off a downward walk and is at point P- (note - just means downward walk is done and now uptrend/price has reached the upper BB for Point P - this is 16 candles (lol) days in the making.
4hr currently however is just breaking an upward walk - also note - a break just means price is no longer ‘on’ the upper BB. nothing more

G/C - daily is at mid BB -on a downward walk (not saying it’ll continue just observing) 4 hr shows a nice squeeze forming - I have no problem going either way on this 4 hr - maybe play ping pong with it till it decides witch(yes scary halloween lady) way to go (but don’t know how to play ping pong yet -wonder if tymen or graviton or others do ???

U/C -daily big time downward walk, at the moment it is nearing the mid bb - for a possible parabolic SAR exit if you would have gotten in a month or so ago. 4 hr nearing upper BB - so guessing a play short in the next 5-10 4hr candles may be in order??? wait and see.

C/J - daily is/was on an upward walk, but has currently broken below the mid bb - 4 rh is ?? I’ll describe as beginning a downward walk no entries in near future.

7

As I stated before I am part time, so I will need to work on consistency. You will see in the fact that I missed the first trade :).

For this week on the 4 hr time frame I only have a little to talk about.

lets start with the first one.

This is before the decision to do this ‘right’ and so is not included in the totals, but thought i’d share just to remind me to do it right.

Ok this pict. is way to small to do any good. which is good. Making adjustments.

8

Here is a EUR/CHF trade executed on the 20th about 12;40 p.m. (CST)

This is the DNA style
trade number 1

Pair Time Price Result NonLoss%

EUR/CHF 12:40 p.m. 1.35439 lot 1 TP1 hit
lot 2 & 3 BE 100%

Ok still not happy with the pic. but here are a couple of notes.
I played this as a daily DNA trade -
End of a daily sausage - and now reaced point P - so valid entry point
a 1 candle CBL also noted a double high - - not sure double high means much but just noted it. I believe/understand a double high with a lower close - would have been a really nice signal.
And so we hit the Mid BB and TP1 reached, then lot2 and lot3 moved to BE plus 1 pip.

and so as you can see on the 4 hr charts it was half way through a move already - which leads me to a thought process that isn’t necessarily explained in the trade plan.

It will just seem smart to go down a time frame or two to get a ‘better/best’ entry - as pointed out in the trading plans.

IN this specific case , had I been around about 8 hrs earlier -on the 4hr chart I may have had an entry, and it would have been an extra 100 pips.

BUT - I hope I don’t confuse here, but this would not have been a valid entry now that I actually look - it is the END of a sausage, which is a no-trade-zone.

9

Trade 2 is USD/JPY

Pair Time Price Result NonLoss%

USD/JPY 2:10 p.m. 87.195 lot 1 TP1 hit
lot 2 & 3 BE 100%

Special note here - I neglected to set my TP1 and TP2 points so I had 3 open lots and at one point TP1 did hit, if I would have set it, and so this is the same result as trade 1, but I took a loss.
Method percentage remains at 100%.
I however because of lack of following am at 50% lesson learned, so don’t do this anymore.
You can see TP1 actually hit by the arrow.

10

Trade 3

AUD-USD

Pair Time Price Result NonLoss%

AUD/USD 1:56 p.m. .89137 SL hit for all three lots 66.6%

A new CBL has formed and I was stopped out - a loss it happens - reason you go with small percentages, it looks like another CBL a third one has almost happened -0 - — it just feels like you should ignore this pair for shorts at this time, just doesn’t seem to want to cooperate.

11

Great to see you are now so organized PerchTird. I’m sure your work in that respect will pay off well. Typically, you need about 20 to 30 trades to get an idea if you need to make adjustments in your trading plan. I’ll be happy to help analyze best I can when you get there. Happy trading!

12

Thanks for visiting Graviton - your thoughts are always welcome here.

13

G/U - Daily is on a BB walk up, 4 hr is also at the top, but I will not play a short , against the daily walk up. But do watch.
-as I noticed - or thought from last week. sort of a reverse thinking - IF the 4hr charts are on a walk up - - but the daily shows a nice point P - maybe even though the 4hr is quitting it’s walk - a normal NO TRADE zone, if a higher time frame says it’s a good entry, then give it a try??

G/J - Daily is ranging so nicely, and nearing the top BB - as well the 4 hr is at the top BB - and the current candle is CBL - maybe the first 4 - 8 hrs will get an entry here??? worth a watch

E/J - in a daily range - squeeze ; and at the moment both upper and lower BB are pinching in - and both the 4 hr and daily are 1/2 past the mid BB - nothing immediate here - but put on watch this week.

E/U - not commenting at this time - in middle of 'nowhere ’

U/J- Daily in process of walk down - and 4 hr at top BB with an extreme candle, could be wise to go short soon?

A/U - from last week, not sure I like this one, it is making an extreme candle, but I went short last week and got stopped out.

E/G - am confused with it so no entry, but 4hr is trending up - but seems to have broken that trend line?? but is at a point where a decision to go long could happen. watch and learn on this one.

E/C - here is an example of my inverse thoughts – check higher time frame to take action on a lower one:: - there are a lot of things going on this 4hr chart. It has reached a point P on the upper BB, and this is off the heals of just hitting point P on the lower BB from a previous walk up.
Daily just 4-5 candles ago made an extreme candle at a point P from a recent walk down and currently price is peaking/peeking at that point P again.

So here is reverse thoughts - - oh man 1 hr is still pushing higher and higher. last 10+ candles all touching upper band.
On the 30 minute candles, just the very last candle has broken away from the upper band.
On the 15 minute - the last 7 bars have pulled away from the upper band.

I guess what I am getting at is the last 15 minute candle is an extreme candle - and can be used as a CBL to make entry short on this pair – -- I am guessing this is a dangerous entry, but if it would work, could enter with a 10 pip SL.

other thoughts - - - seems that if you played a weekly DNA you might already be in this one long.

and monthly suggests long.

hmm and I want to go short.

G/C - in a bubble up no entry here for awhile

thats it for now, last couple of pair didn’t say much either.

14

Great to see your journal coming along nicely. [B]PerchTird[/B]! I also see the influence [B]Graviton[/B] has on your trading, with your [B]Weekly Pair Anaylsis[/B].

I see that you also use InterBank FX Trader as your broker. If you would like to display charts within the post, and not as attachments, you can use File --> Save Picture As --> Current Workspace (or something like that) to save it, and then upload it to ImageShack. ImageShack will then provide you with a link, that you copy-paste and it will show your chart quite nicely! :slight_smile:

Hope this helps!

Happy pipping!