Hi fellow traders
I know this is the slingshot journal, but I want to post the rules & journal of my Mechanical Supply & Demand strategy on this thread. The reason is to keep this only to those who are following my work & because this may also be part of my overall portfolio along side the slingshot strategy. Again this is to diversify my portfolio & to smooth my yearly profits. I can then trade my large savings account using both of these strategies with 100% confidence & belief.
[B]This is my one & only goal.[/B]
All other goals will naturally fall into place.
This Mechanical strategy has nothing to do with actually analysing supply & demand levels, but it does however allow me to be part of the creation of the supply & demand levels which is where the big boys are buying/selling. In a nutshell, I ride all trends with the HTF bias without fail. Unfortunately there will be losses, but that’s part of trading & can not be avoided. So far the results are promising especially when compared next to the slingshot data.
As an example:
2005 slingshot produced 162% Loss.
2005 Mechanical S & D produced 76% profit. This was why I wanted to diversify strategies.
This now means my average yearly profit is up overall till end 2005.
I have plenty more work to do before conclusive results can posted & should take me another week to complete.
[B]Right…the rules are very simple:[/B]
1 - HTF (Monthly chart) - Plot a 20EMA. This is your buy/sell line. If price has closed above, only look for longs. If price has close below, only look for shorts.
2 - Entry (Daily chart) - If going long, the daily bars must break previous day/s low to become a setup bar. Entry order is 5 pips above closed setup bar. Stop is 20 pips below setup bar or recent swing low. Adjust order at every new setup bar until entry is initiated.
This is reversed for shorts. The only difference is stop will be 23 pips above setup bar.
3 - Trade management (Weekly chart) - Once entry is initiated, there is nothing to do until either you get stopped out or the weekly bar closes. Once the weekly bar/s is closed you will trail stop 10 pips below & continue trailing every future closed Weekly bar until stopped out (whether profit or loss). Price will tell you when to get out. For shorts stop will be 13 pips above Weekly closed bar.
There is nothing else to add or take away. [B]KISS - keep it simple stupid[/B].
[B]My back testing journal:[/B]
All percentage based on 1 lot size to keep scientific & in line with the Slingshot results.
Forex tester 2 starting balance $10000
2003 - Profit 132% Balance $16600 - Mechanical supply & demand strategy GBPUSD 2003 132% profit - YouTube
2004 - profit 64% Balance $19800 - Mechanical supply & demand strategy GBPUSD 2004 64% profit - YouTube
2005 - profit 76% Balance $23600 - Mechanical supply & demand strategy GBPUSD 2005 76% profit - YouTube
[B]Note: I have a small live account to forward test my Mechanical S & D Strategy.[/B]
I will post both the LIVE Slingshot & Mech S & D trading account updates to this thread. All youtube video links for both strategies will be posted on this journal too.
Safe trading all