Hey Traders, how goes it? This is Duane
My goal is to show you how I trade my Live Account using my trading strategy.
I have been a Live Account Trader for some time but this is the first time posting the exact details of how I go about doing it. It will include the factors that determine my Trading decisions, my Video Analysis of the market using my techniques and the trades that I am thinking of making.
More importantly, I will show you my 6-12 Month trading goals so that you can see what my goals are from Forex Trading.
MY METHODOLOGY
Here is the Methodology I use
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Using Candlestick Patterns and Trend Lines on the Daily & 4 Hour Charts for Market Direction
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Using the 4 Hour Chart for my Entry
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Targeting 100 to 200 Pips Per Trade (Stop Losses average 100 Pips)
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I Risk no more than 5% per trade.
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Holding Trades for 2-7 Days, depending on the type of trade
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Never Monitoring my Trade until the trade is closed (very important to avoid emotional trading)
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Using FXCM Trading Platform for Entry Signals-
This platform provides the best version of the New York Close of the Daily Candle- crucial to trading strategies like mine. Strangely, even though other platforms use this candle, FXCM charts seem to be the most accurate.
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The Daily and 4 Hour Charts offer greater stability and reliable Entry Signals. Indicators tend to give conflicting signals and clutter my charts. Day Trading was fun when I did it back in 2006 but the volatility of the smaller time frames makes it an unrealistic option for trading.
The Larger Charts also help you to predict major movements and reversals much better, keeping you away from trading losses.
GBP USD JANUARY 18, 2017
PREDICTED RALLY
RALLIED AS PREDICTED
Economic Analysis is also unnecessary for my style of trading. As an Economist who worked at my country`s Central Bank, I can assure you that most of the data released weekly are volatile and unreliable. If you are going to use Economic Data, long-term data is your best bet. But since my trading is done within a 7 Day time frame, that type of data is also not of much use.
TRADING STRATEGIES
I target several types of market conditions
[B]1. TRENDING MARKETS
2, CONSOLIDATION MARKETS (Trading between Support & Resistance)
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BREAKOUTS FROM CONSOLIDATIONS
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FALSE BREAKOUT REVERSALS
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My strategies are adjusted depending on the type of market conditions faced. Usually the main change is the holding period. Consolidation Breakouts tend to take 5-7 Days, while the others take 2-5 days on average.
TRADING PLATFORMS
Now, even though I use FXCM charts for my Entry Signals, I actually preferred to use Dukascopy back when I started Swing Trading in 2011. However, the 2015 Swiss Bank shocker got me thinking it might be time to make a switch. Fortunately I didnt lose money- actually got out just before it took place based on where I had projected the market to pullback…
Nevertheless, I decided to start looking for a broker with Negative Balance Protection. This led to me to FxPro where I now trade. Even though FXCM also provides this, customer service has never been the best.
TRADING GOALS
With my style of trading, trading is done 3 times per month on average. Losing money to Day Trading is something I have experienced, and it aint gonna happen again. Its better to protect your capital trading slowly and patiently targeting the best setups that have a High Probability of Success.
For most of my trading, average Rate of Return has been between 50% to 100%.
However with the addition of more aggressive strategies, this now the goal over a 6 Month period
6 MONTH TARGET
Extending it to 12 Months will give you approximately 120% Rate of Return, accounting for losses along the way.
So that is my Trading Methodology and Goals in a nutshell.
In the next post I will give you the results of my trading so far since the switch to my new broker (up 12%)
It will include the Setup and Forecast for the trades and the analysis of the results.
Until next time, safe trading.
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Duane
DRFXTRADING[/B]
