PureMuscle - My trading log

Beginner Questions
1

Hey guys :smiley:

Alright, since itā€™s raining outside and I canā€™t go lift some weights (because Iā€™ve left them in the rain like an idiot :/), Iā€™ve decided that Iā€™m going to start my own trading log here in Newbie Island, purely so that I remain accountable for all my trades and stick to my intended parameters. First and foremost: I am still very much a novice when it comes to forex trading, so please feel absolutely free to critique my trades and money-management as much as you like. I am extremely open to advice and take great interest in the opinions of others on specific pairs or trades etc.

[B][U]System:[/U][/B]
Ok, so first of all the system I am making use of is the Big E trading system as explained in detail here.

Thus, the basic premise of my trading will be based on analysing the Heikin Ashi candles and watching for points where the red TDI will be crossed from either below (buy) or above (sell) by the green TDI.

[B]Entry points:[/B]
My entry point is also dictated by the position of the candle either above or below the SMA line, which is shown directly on the main chart. If the candle closes above the line, it is likely that the price will continue to increase, and a long position can be entered into. However, this point and the one above it will need to be considered together in order to confirm the expected movement upwards or downwards. I also analyse the nature of the candle into either:

  • Strongly bullish (a long blue candle with a short wick)
  • Weakly bullish (a blue candle with a medium to long wick)
  • Neutral (a blue or red candle that has a long wick on either side of the body)
  • Weakly bearish (a red candle with a medium to long wick)
  • Strongly bearish (a long red candle with a short wick)
    These will either confirm or detract from my expected move up or downwards.

Lastly, I am also using the stochastic index which will indicate whether the currency is oversold or overbought. Should all three indicators point to the same result, I will make an entry accordingly.

[B]Exit points:[/B]
My exit point in a particular trade will be based on the variables discussed above. Should the TDI line reverse or ā€œcurlā€ in the opposite direction to that which it had been travelling in, it would be cautious to exit the trade. Also, should a candle come back below the SMA line if it had previously been above it, this would also constitute an exit point.

[B]Time frame:[/B]
My elected time frame will vary based on the circumstances (as sometimes I find that the shorter time frames provide me with a much earlier indication of a likely reversal), but generally I will be looking for direction from the 1H and 4H TFs, with my main trend coming from the daily time frame.

[B]Support and resistance:[/B]
Although the issues discussed above will be my main considerations, I will of course keep in mind that there are certain levels of support and resistance which can be identified. These will influence my trades, and particularly my profit taking levels and stop loss levels.

[B]TPs / SLs / Other issues:[/B]
Generally, I intend to place take profits (TP) and stop losses (SL) at various levels based on the current market conditions. I do not feel that it would be beneficial setting tight SLs or TPs if there is clear evidence suggesting that the trend is in a certain direction.
Despite this, no matter what, [U]I will not allow a trade to exceed a 50 pips loss.[/U]

A very important consideration overriding all of the above points is that I will always consider the latest news events in my trades. I have found that these have lead me to my largest wins, and there really is no point in trading purely technically without fundamental analysis.

So my main money management considerations at this point are:

  1. No trade may exceed a 50 pip loss.
  2. I will not risk more than 2% of my capital on a single trade.
  3. I will not allow a winner to turn into a loser. NEVER.
  4. A quote for me to remember: "Being right but being early simply means that you are wrong:

Ok well thatā€™s it. Time to find some trades and get started on this bugger!!! :smiley:

Here is a look at what the system setup looks like :slight_smile:

2

Great start! Keep up the testing/trading and let us know how it is going.

3

Thread looks thick, solid, tight. Thanks for the inspiration and keep us updated with any new progress pics.

4

Thanks guys :slight_smile:

Alright, finally I got to do some trading today after work. It took a long time to find a nice entry point (probably because I was looking at the EUR/USD chart too often), but I eventually did find one and below is the result.

Just a quick note: I am beginning this journal with an account balance of ZAR5,000 (Yes, Iā€™m from South Africa). I will also post my trade values so that I can see exactly how much I made or lost as a percentage of what I put on the line.

[U]Trade No 1:[/U]
Pair: USD/JPY
Position: Short
Entry price: 76.85
Exit price: 76.75
Profit / Loss: [B]+10 pips[/B]

Ok, I made this entry based on two timeframes. First I had looked at the 1H chart and noted that the green TDI was on its way downwards and, although weak, a red bearish candle was forming. So to check what was happening over the shorter term, I checked the 30MIN chart, and to my delight, I noticed that there were more red bearish candles and that they had broken through the SMA line, suggesting that the 1H chart will follow suit. In addition, the green TDI had already broken through the red one, further confirming the downwards move.

[B]30Min[/B]

[B]1H[/B]

Alright, so to summarise, the following entry conditions were present:

  1. The green TDI had cut downwards through the red TDI at a position of above 50 - This prompted a strong SELL
  2. The bullish candles had come to a close, and the new red bearish candles had come down through the SMA line - This prompted a SELL
  3. The stochastic was on its way downwards from an overbought position - This prompted a SELL

What most convinced me about this trend was that the TDI had a steep downwards slope, and generally the result that follows tends to be way stronger when this occurs.

Other details of the trade:
[B]Stop loss: 77.00[/B]
I placed my stop loss at this level based on the previous high of around 77.00, ensuring that I am well within my maximum loss of 50 pips.
[B]Take profit: 76.60[/B]
This was based on the fact that the previous low was around 76.60, and I didnā€™t want to bet against the dollar for too long, as the USD/JPY moves rather slowly from one position to the next.

Result:

The trade continued to move in the right direction, not once going into a loss position. Unfortunately, the movement ended before it reached my take profit, and I was forced to close at 76.75. Sad to have only earned 10 pips, but on the bright side my entry was timed perfectly, and Iā€™m happy about that.

So anyway, gosh I didnā€™t expect to do so much explaining for such a small trade! Haha but itā€™s good because at least Iā€™m justifying my trade fully.

More to come as soon as I can find another entry! Just found a nice EUR/USD one, so letā€™s seeā€¦

5

your replies make me laugh.

6

[U]Trade No 2:[/U]
Pair: EUR/USD
Position: Short
Entry price: 1.3340
Exit price: 1.3390
Profit / Loss: [B]-50 pips[/B]

[U]Trade No 3:[/U]
Pair: EUR/USD
Position: Short
Entry price: 1.3320
Exit price: 1.3370
Profit / Loss: [B]-50 pips[/B]

Two losses to start off the day - *$&%! Anyway, so on the 1H chart I once again noted that the green TDI was on its way downwards and that the red bearish candles were forming. My mistake on this was that the TDI lines are almost horizontal. This usually suggests that its not a particularly good idea to be trying to predict the trend, as it can go either way.

Nevertheless, I entered at this point. As the trade did go in my favour for awhile, I loaded a second short. This one also moved in my favour. Unfortunately I was not around my PC at the time when the first blue bullish candle started and wacked right through the SMA (and my SL). A terrible trade, but at least I learnt from it.

[B]1H[/B]

Alright, so to summarise, the following entry conditions were present:

  1. The green TDI had cut downwards through the red TDI at a position of above 50 - This prompted a SELL
  2. The bullish candles had come to a close, and the new red bearish candles had come down through the SMA line - This prompted a SELL
  3. The stochastic was on its way downwards from an overbought position - This prompted a SELL

Reason for failure: The TDI lines were too flat for a perfect entry.

Other details of the trade:
[B]Stop loss: 1.3390 and 1.3370[/B]
I placed my stops at these levels using a 50 pip general stop loss.

[B]Take profit: 1.3290 and 1.3280[/B]
Again, a general TP set without much thought. Had I made them tighter, I wouldā€™ve actually profited from the trade.

[U]Trade No 4:[/U]
Pair: USD/ZAR
Position: Long
Entry price: 7.9298
Exit price: 7.9902
Profit / Loss: [B]+604 pips[/B] (Although its a high number, each pip is worth far less, so you can essentially divide the win by 10)

My favourite pair! This one was very easy to spot. On the 30M chart the green TDI was on its way upwards on a nice and strong angle and that the bullish candles were forming above the SMA line. The same pattern was forming on the 1H chart.

The trade was in my favour from the entry point and did not once go into loss. Again, I am encouraged by this!

[B]30M[/B]

The following entry conditions were present:

  1. The green TDI had cut upwards strongly through the red TDI at a position of above 50 - This prompted a strong BUY
  2. The bearish candles had come to a close, and the new blue bullish candles were breaking through the SMA line - This prompted a BUY
  3. The stochastic was on its way upwards from an oversold position - This prompted a BUY

Other details of the trade:
[B]Stop loss: 7.8900[/B]
This stop was placed below the previous low.

[B]Take profit: 7.9900[/B]
This TP was set without much thought unfortunately. Had I been able to access the charts at work, I wouldā€™ve kept this one running till well over 8.0000. My mistake!

[U]Trade No 5:[/U]
Pair: EUR/USD
Position: Short
Entry price: 1.3384
Exit price: 1.3330
Profit / Loss: [B]+54 pips[/B]

Awesome trade this one! The EUR/USD had just surged up to 1.3400, and was back on its way down. All of the conditions for entry were met, and lo and behold, a nice profit!

[B]1H[/B]

In retrospect - WOW, too bad I didnā€™t catch this recent uptrend in time!

The following entry conditions were present:

  1. The green TDI had cut downwards very strongly through the red TDI at a position well above 50 - This prompted a strong SELL
  2. The bullish candles had come to a close, and the bearish candles were just breaking through the SMA line - This prompted a SELL
  3. The stochastic was on its way downwards from an overbought position - This prompted a SELL

Other details of the trade:
[B]Stop loss: 1.3400[/B]
This was based on the fact that the pair had not yet broken through this level.

[B]Take profit: 1.3330[/B]
Once again I sold myself short - couldā€™ve made more! But again this was due to not being at the PC. Anyway, I decided on a reasonable profit of 50 pips when entering into the trade.

OTHER trades:
Tried to scalp on EUR/USDā€¦ lets just say, NEVER again. Lost [B]20 pips[/B]. My fault for not following the strategy I set.

Current trade balance: [B]ZAR 5,042[/B]

7

And yes, I see the irony in his reply now.

8

[U]Trade No 6:[/U]
Pair: EUR/AUD
Position: Short
Entry price: 1.3820
Exit price: 1.3790
Profit / Loss: [B]+30 pips[/B]

[U]Trade No 7:[/U]
Pair: EUR/AUD
Position: Short
Entry price: 1.3787
Exit price: 1.3790
Profit / Loss: [B]-3 pips[/B]

[B]30M[/B]

The following entry conditions are present:

  1. The bullish candles have come to a close, and the bearish candles are breaking through the SMA line - This prompted a SELL
  2. The green TDI has cut downwards through the red TDI at a position above 50 - This prompts a SELL
  3. The stochastic was on its way downwards from an overbought position - This prompted a SELL

I have opened this trade currently, so letā€™s see what happensā€¦ I am in favour of this one so early because the decision about the euro interest rate will clearly only have a temporary effect on the EUR, and as can be seen from the chart, the trend is still strongly downwards.

Result:

The trade moved nicely, shifting down all the way to 1.3749 (71 pips). Unfortunately my TP was sitting at 1.3720, and the pattern reversed. I also had opened another position at 1.3787, which also moved into profit, but the reversal prompted me to close both.

Nevertheless, I am extremely happy with my entry points, which seem to be timed really well :slight_smile:

9

Stats update:
Balance: [B]ZAR 5,152[/B]
Profit: ZAR 152
Percentage return: 3%
Trades: 8 (includes the attempted scalp)
Wins: 4
Losses: 4

Ok, so the ratio isnā€™t great, but the fact is that I have made more than Iā€™ve lost, so Iā€™m happy :slight_smile:

10

BigE was something I looked at a while go, shame it only works on longer timeframes really. Itā€™s nice to see it working though and 1:1 win/loss but with a positive account is definatley a positive sign. Keep up the good work.

11

RAGE RAGE RAGE ARGGHH ARGHHH!!! Stupid and illogical trading was the name of the game for me yesterday, as I made emotional trade after emotional trade, completely disregarding the rules of the system and blasting my account to oblivion.

What I have learnt:

  1. DONā€™T EVER trade at work! (Why? Because I do not have access to my charts at work and every trade I make is based on pure impulse.)
  2. DONā€™T try to make up for a lost trade by immediately re-entering the market!
  3. FOLLOW THE FREAKING SYSTEM DAMMIT!!!

Ok, enough ranting now. Pure and simply, I made the splendid mistake of not following my system, and trying to trade based on price action. As a result, I failed hopelessly. Lesson learnt and never to be repeated. Come Monday, I am going to be more determined than EVER to stick to the system.

Shroomhead - I must say that, on the contrary, I am finding that using the BigE system over the shorter time frames is providing much more timely entries into the market, and in addition, it captures the effect of news events nicely. What I do seem to have an issue with is my exit points, which I feel should rather be based on the longer time frames. Nevertheless, we will see how it goes now that I have been thoroughly chastised.

New Balance: [B]ZAR 4,188[/B]

12

I have the same problem with irrational trades. After losses as well As large consecutive winners. This is going to be my next large hurdle really. I have been reading a lot of books and Trading in the Zone is really quite good. I am one third the way the trading for a living by Alexander elder and it really rips the mask of trading away like no other . I hope you can find your trading center again. I am searching for mine. Good luck. Cheers and good pippin

13

Thanks, best of luck to you as well! :slight_smile: Although as a wise individual once said, ā€œIn my experience thereā€™s no such thing as luckā€ :wink:

14

I donā€™t trade news and it gives way too many false signals on M1 and M5 I believe, not to mention you have to start dealing the with spread. Plus HA averaged candles are not as effective as reading price action when you need to be lightening fast. I could be wrong, perhaps Iā€™ll look into it again at some point in the future, but from what I tested I didnā€™t find BigE useful on short timeframes.

It seems to be working out nicely for you (which is all thatā€™s important), so just stick with the plan. :slight_smile:

15

Wow! All I can say is WOW! :smiley: And thank you very much to the wonderful news announcements today!

Today was all about the EUR/USD for me, and I turned my balance around! The system picked up the trade perfectly and I climbed in again and again for a return of 21% on the day!

A summary of the trades follows:
Total trades: 13
Wins: 11
Losses: 2 (both on USD/JPY - trying to scalp even though I PROMISED I wouldnā€™t :/)

All 11 wins were long positions on EUR/USD which I suppose could just have been three of four long trades held through the day, but nevertheless. I scaled into my trades nicely and Iā€™m so very happy now!

So anyway, the initial setup was:

[U]Trade No 20:[/U]
Pair: EUR/USD
Position: Long
Entry price: 1.3472 (and numerous scale-ins thereafter)
Exit price: 1.3520 - 1.3650 (range within which all the trades were closed)
Profit / Loss: [B]+241 pips[/B]

[B]1H[/B]

The following entry conditions were present:

  1. The bearish candles had come to a close, and the bullish candles were breaking well above the SMA line - This prompted a BUY
  2. The green TDI had cut upwards through the red TDI and was continuing above it even on the shorter timeframes - This prompted a BUY
  3. The stochastic was on its way upwards from an oversold position - This prompted a BUY

All of the indicators suggested a BUY, and the best part was that all the timeframes suggested the same result. Then of course can a number of news events which further cemented the position and has brought the euro back from the grave, just like my trade account :stuck_out_tongue:

New Balance: [B]ZAR 5,088[/B]

A lesson learnt -> STICK TO YOUR SYSTEM!!! It works!

16

Just a quick question to anyone that reads this: Is there someplace where you can see the volumes traded on all currencies at a glance? I know MT4 has one, but it seems that you canā€™t make direct comparisons between pairsā€¦

Anyway, so I want to test the different time frames now to see whether the shorter ones give me a favourable entry point. So for the first time I have used the 15Min chart to enter into what appears to be a short on EUR/USD. All the other signs are there, so letā€™s see if it works out.

[U]Trade No: 31[/U]
Position: Short
Entry point: 1.3670
TP: Looking at around 1.3600

[B]15MIN[/B]

Closed at 1.3635 for [B]+35[/B] pips. Sigh, I was hoping it would be more thoughā€¦ The candles reversed so I pulled out of the trade.

17

So as I look back on a vastly successful day by my standards, I canā€™t help but be completely entranced by this exciting concept known as forex trading. The things one can learn just by listening to anotherā€™s opinion, or looking at how they analyse a chart in contrast to how I would for instance - itā€™s just so fascinating! :smiley: Itā€™s like weā€™re all detectives or scientists piecing together all these little clues to try to figure out what just happened, and whatā€™s going to happen next. Hahaha I love it, this mystery of forex!
One thing is for sure, forex is certainly not gambling; itā€™s just a very tough puzzle that a lot of us will never solve entirely :wink:

18

Right, to make a long story short (excuse the pun):

  • I lost heavily, bringing my account down to R 2,312
  • I won a huge long-term trade, bringing my account back to R 5,950.
  • I then went short on E/U and got raped to no end.

So anyway, Iā€™m back to my log to make use of every possible tool to ensure that I show this market that I will NEVER give up, and that itā€™s time to give me back my PIPS DAMMIT!!!

First up:

[B][U]1. EUR/USD:[/U][/B]

Entry at: 1.4200

A SHORT trade. You can better your mamaā€™s ass that the EUR cannot keep climbing indefinitely, and that these little red guys are the start of a nice little downwards shift. My target is that first fib level of 1.4156. I will not dare go beyond that!
My stop loss is above the previous candleā€™s high at 1.4220.

[B][U]2. USD/JPY:[/U][/B]

Entry point: 75.95

A LONG trade. Why? Pure and simply, the BOJ would never let the USD keep pushing it to new record lows, and last time this happened, they intervened and caused a ruckus. Additionally, the H4 has some nice blue candles supporting my view, as well as a fair crossover of the TDIs. Stop loss is 75.60. Take profit is 76.30. 1:1 risk you say? My ass. I am confident in this one.

Total trades taken: 2
Trades Open: 2
Trades Won: 0
Trades Lost: 0

19

Nice. The EUR/USD closed out at the TP, so bagged a cool 44 pips.

The USD/JPY is just going lower and lower, so Iā€™m giving up on it. Dammit. 19 pips loss.

Total trades taken: 2
Trades Open: 0
Trades Won: 1
Trades Lost: 1
Net pips: +25

Still got a lot more pips to rip out of the market and never give back!

20

Alright, Iā€™ve taken a bit of a risk, trading on a rather awful chart, but nevertheless I think it should be ok, as Iā€™m only risking 1% on the trade. I have taken a LONG on EUR/USD with an entry of 1.4154.
TP = 1.4200
SL = 1.4130

Closed the trade for 16 pips. Sigh, what a pathetic day for EUR/USD. I hope next week isnā€™t going to start off as dead as this.

Total trades: 3
Trades open: 0
Trades won: 2
Trades lost: 1
Net pips: +41 pips