DAY 42 UPDATE (MAY 1ST 2019)
Wow!!!.. It’s a new month. I really did keep this up for a month!!!
NOW WHO’S THE BOSS?!!!
So we’ll do the usual first as always, and then we’ll move on to the End of the month Review.
No of Trades so far: 11
No of Active Trades: 1
Profit Trades: 4
Losing Trades: 5
Break Even Trades: 1
Trade stats increased by one more trade today:
There’s something different about this chart, I bet you wouldn’t have noticed at first glance, unless you’re really familiar with this pair that is. All previous trades I’ve been taking have been on the daily charts…
This one isn’t and this is the daily chart of the same pair now, alongside the H4 chart:
I have enclosed the area on the daily in the same box as on the daily so you can see what I’m looking at. nice BEEB forming at a daily level on the chart, so I had a limit order set below the Bearish engulfing candle, it’s currently active and we’re hoping it reaches first TP at least, then whatever the market gives after we’ll take.
Well, on more not so good news is the update on my:
You guessed it, I’m out at full Stop loss and that’s another hit to my account, more than I’m hitting the market in recent days
On the flip side we might be seeing a good PA candle forming at the recent high to the left of price on that chart so we’re watching out for that.
Well I finally pulled the plug on this one, it was obvious price was struggling as seen by the upper wicks on the last few daily candles, I could have waited for price to retrace back to the former resistance and hold as support but there’s no point holding on to a trade when you know it’s highly likely to go lower. Getting out on that one later than I could have did however cost -0.16% of my account. I’ll take that rather than a full loss,
I haven’t changed any of my strategy though in case you might be wondering, it’s on my exit scenario case to do just that when price action is showing red flags.
So in summary for the day, I’m out on the two old positions I was holding and in on a brand new one.
END OF THE MONTH REVIEW
This is something I really have been looking forward to, mainly because it’ll be my first official “check up” since we started on this Journey together. Also I’ll be able to show you guys a glimpse of how that works. I mentioned at the beginning of this thread that I’ll be using Trello Boards for my local Journal recording and analysis.
Here’s how my Journal looked like at the start of everything right up on the first few pages of this thread:
Bare but promising
Here’s how it looks now 11 trades later:
Each column you see here is a list dedicated to a single currency pairs, all pairs I watch have a list here.
If I take a trade on a currency pair, the details go into a card on it’s parent list, and subsequent cards are either updates of the existing trade or a new new one altogether if there’s a new trade.
Let’s take the last trade I got into for example:
There’s a single card on it’s list since it’s the first ever trade I’m taking on the pair. On the card you can see the labels (or tags) detailing a summary of the trade:
AP - According to Plan
BEEB - Bearish Engulfing Bar
I think the rest are pretty explanatory, I could open up the card for even more details on the trade:
The arrows there show the three sections of information I store on a card. This all happens for every new card (one everyday for active daily chart trades, and one every 4hours for active H4 chart trades)
This is more or less how my journal looks and works.
Now that it’s the end of the month and I might want to analyse my trades, I filter based on the information I need using the labels attached to each card. Please note however that there are still too few trades to reach any statistically significant conclusions about my trading. What I can discover and which I did though, is measure the quality of the trades I’ve taken in the last trading month and measure it against the standard they were based on. A general example might be taking a look at all PA trades I have taken since inception:
I have filtered the Board (that’s what Trello pages are called ) to show only trades taken based on pure price action:
If you were wondering why I decided it was time to start looking at the 4 hour charts for PA trades, this is why, I was only able to find and take two trades looking at the daily time-frame based on this strategy. My Journal tells me that to reach my monthly target of 5-10 PA trades comfortably every month. I need to start taking trades on the H4 charts as well.
what about breakout trades:
Journal tells me we’re doing just fine with the numbers on this one…
I could go on…
Journal says most trades have Reward to Risk of 1:1 which means either my win rate need to go up higher or my R:R need to change, I’m a high probability trader by nature and therefore keeping my R:R and getting to work on improving my conversion rate. A 60% conversion rate on my trades for this month alone would have seen my account up by roughly 4%.
These and many more are what I get from my Journal… I have shown some examples just so you can see how I use my Journal… Hopefully it wasn’t a event .
So that is that really for my month end “Check up”.
We’ll only be getting back to this in another month’s time, but by then I’ll have implemented some of the things I noticed the past month and further reviews means it’ll be even more effective as a tool to improve my trading, so watch out!
That’s enough rambling for just one post I suppose, If you haven’t yet fallen asleep along the way haha .
We’ll catch this tomorrow and talk more about the markets, less about what I do behind the scenes…
Enjoy the pip hunting guys…