Need some feedback on my trading plan

Trading Systems
65

Hi MagSSS
I just looked through your strategy description and I think it looks very realistic. But I am a bit confused about what are the respective roles of the daily chart versus the 4-Hour chart. For example, you said:

I assume this is primarily from the daily chart. But do you also put the same MA’s on the 4-hour chart and wait for that chart to synch with the daily MA’s?

Also, are you setting your support/resistance areas from the daily chart? If so, then these would be the same on the 4-hour chart anyway. But the 4H chart may offer more intermediate S/R areas.

Also, on which charts are you watching the RSI levels and looking for confirmation candles?

I use an extremely similar set-up, and have done for many years, except that I tend to work with the 4H/1H charts and only use the daily for an overall picture of what’s going on. I think it is a very logical approach:

Basically, you are looking to trade with, and not against, the current main trend and entering on pullbacks to identified earlier S/R areas - and then exiting on identified previous “exhaustion” areas. This means your SL risk is small compared with the profit potential, which is good risk management.

In brief: A good probability edge combined with sound risk management.

Some extra thoughts:
If you are looking at 28 currency pairs, be careful to watch for possible correlation between some pairs where they would move in the same way when reacting to news/fundamentals. This can unintentionally lead to excess risk exposure.

SInce you are trading off daily charts, the moves will inevitably be greater than on lower TFs. This offers the possibility to move your SL as the trade evolves to B/E or even locking in a profit.

Both the 50 and 200 MAs on the daily charts move like oil tankers and take time to change. So even when the trend has exhausted they will still give the same signal for some time. This can lead to periods of whipsawing because daily trends do not reverse immediately and can consolidate for long periods.

Have you considered trading commodities or stock indices like US30, DAX, etc? These tend to have longer moves. I also think support/resistance levels carry more sense with these products because they have an underlying “product”. Currency pairs, on the other hand, comprise two currencies, both of which have their own factors.

Anyway, I look forward to hearing more how you are doing, and wish you all the best :smiley:

1 Like
67

(post deleted by author)

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I am a supporter for this definition. :grin:

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Trading is not a competition. Rather than we waste our energy, it’s better we use it to improve our trading.

I have met many people that have been long in this industry. Some have done forex for 20 years with no result, some are good in within 3-5 years. Mostly, the fastest will be around 3-5 years.

Above the successful trader, most of them have different type of perspective, So trading will be their own business, technique and habit, we don’t fight over it.
Most of time, when we share something, we just want to see other perspectives. every one free to comment and we surely learn from it to improve our own strategy. This is how we survive. Market is dynamic, many new aspect that we can’t see. By have a group of trader who willing to share, we can get improvement faster.

Even now, I’m still interesting to learn from others and I gain a lot of benefit from them. Other than discretionary trade, I’m a heavy user of EA. I never buy an EA, I create them by my own.

“Stay Hungry , Stay Foolish. - Steve Jobs -

About your trading plan, the most flaws comes from, you design it before you do back test. The analogy is, you make a plan to buy a pair of shoes to every store you go. Remember you need to find out what kind of store you go. If they sell foot ware, you can execute your plan.

The same thing with your plan, a strategy for all major pairs. For instance, you can see how EURUSD, AUDUSD, USDJPY move. They have differently actions. So the strategy will have different result.

The same thing with timeframe to identify major trend. For instance, you can use H4 for identify trend in EURUSD, while using D1 will be lagging. But NZDUSD most likely perform better in D1.

For MA 50/200, you need to be specific on which timefame you want to use it. EURUSD can use it in M5, but it’s useless for USDJPY. The samething happens to RSI. When you use it in wrong TF, you can’t even open a position, because RSI wont reach 30 and 70.

The point is you need to be very specific to plan your strategy when using indicators.

1 Like
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Show me logical arguments against my statement

77

something for you, definition from the internet after I copy and paste word “sophistry” three top results:

“subtly deceptive reasoning or argumentation”

“the clever use of arguments that seem true but are really false, in order to deceive people”

“1. a subtle, tricky, superficially plausible, but generally fallacious method of reasoning.”

“2. a false argument; sophism.”

results from google https://tiny.pl/djbd4

Again, you didn’t show any argument against my statement, and I don’t know where did you found your definition, maybe you show me some source?, according to definitions which I found and added links to it looks like you want to misunderstand users.You and Vasyl should consider why you are here.