DAY 61 UPDATE (TUESDAY 21ST MAY 2019)
Tuesday Update, pretty dull for a day after Monday on my end, but that’s PA trading on large TF’s for you, you gotta be able to bear the barren spells without favorable trade set ups.
No of Trades so far: 21
No of Active Trades: 1
Profitable Trades: 11
Losing Trades: 6
Break Even Trades: 3
So today was pretty boring, but yesterday turned out in a queer manner… Why? Well… I did something out of what the plan dictated . Although it is PA based and did work out, I found myself thinking about it quite a lot after the trade and thought I should let you in on my crazy stunt journal… Here’s what I did?
I TOOK A TRADE IN THE MIDDLE OF NOWHERE
I decided looking at the NZDCAD H1 chart that there was a BEEB just after a break and retest around a minor level that was worth shorting. Here’s how it looked:
Right after the breakdown of the middle red line level which was pretty significant, I was looking for a tradeable PA based set up on a retest of the level, I mean the trend was obviously favoring a short as it’s been down all the way last week, but the short trade never materialized on the H4, after the trend moved down a bit further I switched back to the lower TF and found I could have spotted the Inside bar short set up right on the H1, and it would have been tradeable based on my plan, here’s what I was looking at:
Tradeable Inside bar in line with bearish trend after a pullback and retest of broken key support level
And right when I was thinking of how I missed a nice 2% boost to my trading balance (I hadn’t spotted any other set up all day), I saw this playing out:
The BEEB at the the retest of the minor orange resistance zone was tempting, and I took it, knowing what I was doing (Taking trades that isn’t from an already marked key daily level. I felt strongly about the trade (subjective nature of the personal self taking control over the objective plan-following self here ) and went short on the BEEB that was so alluring to me at the time, here’s how the trade turned out:
I ended up making a profit on the trade but not the way my plan wanted me to and that is not something I should be doing.
A better way to have played the trade if I had spotted the H1 inside bar ealier would be to short it with stop above the key level (the high of the mother bar), take profit on half position on the minor support level that got broken and adding another 1% short on the BEEB I found at the retest of the minor resistance using the now remaining 1% at 100% profit as insurance for the new pyramided short.
At the end of the day at the bottom key level, I would have been out with a nice 1:3 risk to reward trade all the while risking only 1% of my account to get there. I would have been very happy with myself and the fact that I did follow the plan.
So that resolves the allure of taking PA setups found within key levels, Only if it’s risk free, and pyramided down to the next key level.
The only set up found so far is this BUEB setup on GBP/CHF.
However the downward momentum leading to that PA pattern makes it an unlikely trade for me so I’m watching the daily for a stronger PA that might signal a long entry on this one.
On the good side, it’s day 60 and 20 trades later my account is still not in the red, currently standing at 4% gain, I would say I am very okay with the results so far, the goal is to achieve a consistent average monthly return of 2% or more on equity and then everything else will follow.
So far…So good… and the learning continues…
That’s enough rambling for today Journal… tomorrow will be a good time to catch up again, see you then