I have attempted to make my own strategy to test on a small account, I have been doing demo for over a month now and just feel that I dont take it seriously enough.
So i decided that I would just make a small account with only $500 in to start actually taking my trading my seriously.
I have come up with a strategy that I feel comfortable using but just wanted to get some feedback as to how I can improve my strategy as I would still class myself as a complete amateur.
This is my strategy.
Using 2 time frames anywhere between 15m-4h charts to position trades, using clear support and resistance levels on both time frames, must be below 50 period simple moving average. Looking for bounces off support and resistance.
You must be following the trend up or down do not trade continuations, check higher time frame must be looking for trade opportunities that follow the trend on both higher and lower time frames.
Mark out clear support, resistance and trend lines on higher time frame to mark where potential bounces may happen.
Do the same for time frame you want to trade, and look for the bounces.
Once you have found a potential trading area, how strong was the move up/down to where you want to trade if very strong need stronger confirmation of the bounce.
The retracement of bounce area must sit anywhere from 40-60% of previous down/up move.
Trigger must be close of atleast 1 indecision/reversal candle and close of a reversal candle, order on close of the 2nd candle, 3 candlestick triggers if the upward move was strong.
Set stop loss just above/below the shadow of the indecision candle at the predicted bounce.
Hi, did you use the trading journal? daily charts are also good when using price action. Very convenient to use, if you trade at the closing of the candle and you can clearly see where the market is heading (less noise) Regards Greg
The lower the timeframe the more the market ranges. In my opinion follow the trend strategies should only be aplied if trading from daily charts up to monthly.
Just test this strategy than you know if it works.
If it makes profit, there is no reason to change anything- that’s the best procedure. Look at first if it works that way.
I have not started with this strategy yet so have not made a trading journal but will be something that i look to do, any suggestions on things to look at before i begib?
How do you mean money management? I mean Im very aware of risk reward ratios and also the 2-5% risk of your account per trade, what other things can I look at for help with money management?
Trading journal journal is a place where you write down all your insights about the strategy and the market, for example why you opened positions here, set stop loss order and take profit at a given level. In the future, these levels will change due to your observations.
I got a little bit more detailed in your strategy as I use for myself similar inputs with success- but it seems to be a quant to complicated. But what is really good is the fact that you take multiple timeframes ln account. For me I only enter trades, if I get a signal on the 1M chart which is supported by 5M and maybe (depends on the overall situation) by 15M chart.
Don’t test your strategy with your hard earned money, I have been there. Testing on a live Account will possibly increase your seriousness in this trade business but you will be more conscious on making the money grow rather than making your system better. You might want to concentrate on improving both money and system but the psychology of several losses will cause a mind war between trading to improve the system and trading to recover the money.
That sounds like a great plan. You should test this out and share the charts for some insight. If you’re confident with it, I say go for it. Good luck to you.
You have really come up with a very good strategy plan. I also planned a strategy before entering into the trade market and it helped in growing trade, increased financial health, productivity and efficiency.
It just depends on how you plan and analyse things and make a strategy on the basis of that.
did you use the trading journal? daily charts are also good when using price action. Very convenient to use, if you trade at the closing of the candle and you can clearly see where the market is heading (less noise) Regards Greg