Hey guys! I am still alive, and still grinding on my trading ![:slight_smile: :slight_smile:](https://forums.babypips.com/images/emoji/twitter/slight_smile.png?v=5)
I switched my strategy to trading on the 4 hour charts and looking for double top and double bottom chart patterns. I also need to see RSI overbought or oversold on the first part of the pattern, and then an RSI cross back into ānormalā range on the retest of the level. If I get all those to line up then I enter at trade at the market.
My back tests on the EUR/USD pair for last 5 years shows that each trade has a positive expectancy of about 35 pips and some change, and on the GBP/USD pair each trade is worth about 43 pips for the same price range. Average losing streak is 2 trades, and max losing streak is 7 trades. Average risk/reward is 1.5 reward to 1 risk, with a win rate average of 55%.
The four hour charts have been working well because of my full time job. I tried day trading the Asian sessions on both range and 5 minute charts and it was like the bonds department of a big bank in the early 1970ās. I would rather just pop onto my charts every four hours or so (which I can with my job) and check on trades rather than limit myself to the snailās market of the Asian sessions.
I am still figuring out what money management system I want to apply, and once I get that done Iāll re-open my trading account with another $100 (didnāt blow the first one up, just pulled the plug once I hit 35% loss on original equity). Right now I am just demo trading the four hours and seeing if I can implement my strategy under accurate market conditions.
My end goal is to trade the USD pairs on a swing trading basis and build my account from there. If I ever get to be a full time trader then I will daytrade the NY session, and use swing trading to smooth out my equity curve.
For me education I have read / listened to the following books:
One Good Trade by Mike Bellafiore
The Playbook by Mike Bellafiore
The Daily Trading Coach by Brett Steenbarger
Trading in the Zone by Mark Douglas
New Market Wizards by Jack Schwager
Forex Trading for Dummies (forgot the author)
Technical Analysis for Dummies (forgot the author)
Currently working on Hedge Fund Wizards by Jack Schwager. After that I plan on getting Reminiscences of a Stock Operator and then beyond that I am out of ideas for books to read.
Well thatās all I have - I am going to try to be more active here as well even though I am still heavily testing my trading strategies (which makes for very boring reading
)