I’m trying out a new trading system and will record my journal here. My set ups are taken from 5/15/30/60 min charts. Goal is to make 20 pips per day. This system is not being conducted live at this time and so we will be in demo mode until we feel it is consistent. All positions will be single lots until the pip bank increases.
I pulled the plug much too early and should have adjusted my OCO order. Anway I’ll take the 10 pips and wait for the charts to reload.
This is my chart lay out with multi time frames
I have also noticed by trading in the direction of the STO’s making pips is not very hard. I’ll use a four hour chart to determine the overall trend. AUD/JPY’s 4 hr is in limbo right now so shorter targets is what I’m looking for.
Done for the night. Started this system yesterday and here are the trades thus far. I selected to stay with this one pair because it is somewhat volatile. The EUR trade was from late last night.
5/min trying to diverge in the RSI and trying to change the dynamics of the trend. In order for this to happen it needs to take out 101.35 with some conviction. We have a fractured set up and risk is high at present. Not planing on taking on any trades but just keeping my eye on it.
15/min trying to flag buy signal. 1 hour turning up. 5 min tgt 101.54 15/min tgt 101.80
Well fractured set ups are risky and I should add a rule to take profits quickly in this set up. It did hit 101.51 and I think I was targeting too much.
This chart shows why it was best for me to sit on my hands tonight. It is a fractured set up and I have not a clue were it is going.
Probability of a winning trade is reduced in this type of environment.
Well tried to force some trades without having good signals. The charts have been pretty much floating sideways since I got home from work.
I think AUD/JPY at a key spot right here. I would say next bull move is a blast through 102.60 area. Now the 4-hour trend is up and hit the 80 band in our STO indicator. We shall wait and see what develops here. My other time frames have been running sideways. I expect a move in coming. So I�m bull over the 102.59 and bear under 101.91 in the short term.
Trading AUD/JPY is a personal favourite for me.
Regards, Tymen Wortel, Perth, Western Australia.
Well AUD/JPY did breach my Bear-line and triggered short. I just got home from work and missed the nice move out. My short-term tgt is around 100.92. Anyway because of my lack of sittings in front of my screen I often miss the nice moves.
I made no trades today and will post my thoughts on what I�ve been doing later…
Here are my test system results thus far. Now have only had this running for 3 days and so things will change as I move on. As mentioned in last thread I often miss my prime set up and then forced to move to a smaller time frame. This almost forces me to get out to fast. I�m going to reevaluate this.
Thus far we have taken 16 trades and have won 13 times. Now from what I see that is great but I�m not very impressed with the amount of profit from the wins. This will improve over time but I feel that chasing pips could be dangerous. Now one might ask the question as why I�m only trading 1 lot? Well this is because I�m testing this with the lowest amount as possible. When my pip bank grows and my hit rate known I�d then be interested in using more lots. It could be a prudent thing to start out small/grow the account and gain confidence in a system, and then employ a position sizing strategy.
I�ve really only have been trying this multi time frame system out this week. So I�ll create rules as I go along. I do think one can be profitable with trading just one pair and not chasing every zig and zag they see.
Entry/targets smaller time frames often in direction of main trend, unless counter trade
Miss my prime set-ups (because of work).
Letting winners run
Having stops tight
Over the last few trading days my assessment is that I�ll need to come up with a better stop plan or trail plain that allows the trade to develop. Yes the goal is just 20 points a day but when a 60-100 point move presents itself I wish to be riding it.
Here is how I�m seeing things. 4-hour trend is down and this guy needs to hold the 99.48 area. Should it breach this I think we would then have a double top pattern in play. The measured move of this set up would be around 96.06. This would be one heck of a move but we shall see.
Now looking shorter term I do feel a bounce is in store with a retrace back into the 101.25 area. So for now I�m Bear in this pair and may try a counter trend play during the retrace. I will remain bear in this pair until it can take out the 102.59 and stick. 99.48 next bear line and 102.59 Bull. I also have other targets for shorter time frames.
AUD/JPY daily trend is up and the Bulls took control over the past few days. Shorter time frame is overbought and so we will be looking to play it short. I messed up my excel sheet and will now need to do over… Anyway I’m longer term bull in this pair. 102.57 area should be support now. Since the daily has turned up any shorting will be keyed off 4 hour charts.
Well did the opposite of what I said as in the overnight trading the pair sold off hard. Anyway I did take a long trade with a different set up. I noticed with trading 1 lot I had the tendency to over-trade. I’ll try trading 2 lots with limit at 15-20 pips and then move the stop to b/e. I tried this method today and got 16 pips on my first lot and 53 on the second. This will reduce the number of trades and help prevent the over trading I’ve been doing. Still have the 20 pip per day goal. My stops will be placed based on the charts and so this will vary. So like I said before this is all new too me and we will try to track this through excel… I just need to not delete the excel file…hehe
I see a fractured set up with the daily trend down, 4-hr down and my shorter time frames up.
I know this is just a demo account and you are counting pips but can you post your openeing balance and closing balance say at the end of the week?
I am most interested in the ROI of your system.
micrapip, I will do this as soon as I figure out my orders. I keep messing up my orders and end up with open positions that I did not wish to open. I think it has to do with my lots. Now over the last few days after coming home from work I noticed I was in a position I did not intend to open. This could have been a disaster if it was live.
Once I get things smoothed out and I get a grip on the ordering process I’ll reset the demo and start with 5K…