Hi there, I am now at trade #92 and it is time for me to reflect on what has happened and what I have learnt from all of this 100-live trades challenge.
I started with a simple set of rules which I amended slightly in v2.0
In there I have 3-types of trades: direction of the inner trend line; if itl is broken then trade the "reverse crown right tip"; if itl is broken also can trade against the broken itl if there is a 4h/2h 786 candle of a large swing (this one is quite hard to explain in words). I however, have not just traded according to my rules, I traded outside all of this so really I can't say I have been "Disciplined".
The good news is that I just re-written my rules for trading and did it so "without reading my original rules", I re-developed this from the experiences of the 100 live trades challenge "separately" and if you compared the two I have came up with the same conclusions with the exception of "one more group/type" of trades.
I find this quite encouraging, and I hope to adhere to these 4-groups 100%
This have been perhaps the most challenging part of all my trading strategy. One thing is to know when to enter a trade, another is to know how to manage your profits, how to set up your profits, when to move the trade to b/e to avoid doing it too early, etc etc.
I know that the most profits I can make is when I follow the rules detailed in my strategy, "let the market swing, move your stops to the most recent hi/lo using the 2h or 4h chart, keep adding to your live trade(s) in a pyramid style until such time that the market breaks the itl and forms a contrarian signal, In other words, stay in the trade and keep pyramiding on it until the next trade in the opposite direction appears.
Well, this is much easier "said than done" and it is certainly quite easy to do when you are "back testing"...when you are in the live trades and see that you made 300 pips and then it is starting to retrace (in the case of the gj this retracements are sometimes 100 pips or more!) then you get out only to realised that it wasn't retracing at all!
Anyway, what I have decided to do is use the fibonacci extensions as my profit targets for the G/J. It is a good compromise for now until I become far more experienced and disciplined in following the cancel/replace method.
Finally, since I am about to finish this thread, I want to make my contribution to those of you who have been following my posts. I have gotten a few nice feedback in my inbox and I thank you all of you and hope that you continue to generate profits. As such, I will attached one example chart for each of the 4-type of trades based on my redefined trading strategy (which it is not that far off from the v1.0 i might say)
my next few posts will also be a look at the upcoming week so you all can be on the look out for the next trades....