Solution's Journal

Trading Discussion Trade Journals
1

WORK IN PROGRESS

[U]Objective:[/U] To force discipline upon my trading by cataloging and annotating every trade, and using the resultant organized data to build a personalized/proven system for trading forex.

Rules

  1. No new trade may be taken until all rules have been adhered to.
    Reason: Discipline

  2. An annotated chart(s) of every trade must be created.
    Reason: For historical reference, and to better understand/evolve the way I look at a chart.

  3. Every pattern/set-up/methodology traded must have a running average of the following,
    a. Success rate
    b. Average Pips gained/lost
    Reason: To determine what types of trades I am best at, and what needs to be improved on, or disregarded.

  4. Every pattern/set-up/methodology traded must have an outlined and customized money management plan that will be followed with 100% consistency.
    Reason: Discipline

  5. No live trading for at least six months, [I]if ever[/I].
    Reason: Unless this journal can provide proof of long term consistent profitability, I will have no logical reason to begin live trading.

  6. Ignore all news.
    Reason: I have no way of numerically representing news or accurately reflecting its impact on the success/failure of the various trades I will be making. Also I am terrible at interpreting news, and so for now will pretend that variable simply doesn’t exist (sticks head in sand).

Important Questions

a) What is the path of least resistance?
b) Where are the “freshest” areas of supply and demand?
c) How can I make things simpler?
d) How do the different currency pairs behave during which I normally trade?

Method #1: Banana Pudding

Success rate = 00.00%

Average Pips gained/lost:
(D) = 00.00%
(W) = 00.00%
(M) = 00.00%

Account Value = $1000.00

Method #2: Turkey Sandwich

Success rate = 00.00%

Average Pips gained/lost:
(D) = 00.00%
(W) = 00.00%
(M) = 00.00%

Account Value = $1000.00

Method #3: TBD

Success rate = 00.00%

Average Pips gained/lost:
(D) = 00.00%
(W) = 00.00%
(M) = 00.00%

Account Value = $1000.00

Combined Account Statistics

Account Value = $3000.00

Average Pips gained/lost:
(D) = 00.00%
(W) = 00.00%
(M) = 00.00%

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2

Method #1

Code Name: Banana Pudding

Methodology: Volume spread analysis and divergence.

Tools:
a. Tick Volume (possibly a tick volume oscillator or the volume from related futures)
c. Fibonacci Retracement (standard levels)

Time Frame:

Money Management:

Explanation: Volume spread analysis (VSA) has four phases. They include mark-up, mark-down, accumulation, and distribution. The underlying idea is that the markets are controlled by professionals who account for the majority of volume. By interpreting volume and price spread we should be able to spot which phase the chart is in, and position ourselves with the professionals, instead of the foolish heard.

VSA Phases.jpg618Ă—700 37.4 KB

Divergence is simply put, when price and macd are trending in opposite directions. In other words, if price is making lower lows, you would look to see if the MACD is making higher lows. This tends to illustrate that a trend is weakening, possibly signaling a reversal.


Example(s):

Issues: The volume you see in Forex is not comprehensive, and is usually referred to as “tick” volume. This volume is simply a count of every trade (buy or sell) over a given time-frame.

Personal Opinion:

References: tradethetruth.com

3

Method #2

Code Name: Turkey Sandwich

Methodology: Gartley/Butterfly/harmonics

Tools: Fibonacci Retracement (.000 .236 .382 .500 .618 .786 1.000 1.272 1.618 2.000 2.618 .886)

Time Frame:

Money Management:

Explanation:

Gartley 222.jpg695Ă—230 37.8 KB


Harmonic possibilities.jpg700Ă—470 28.2 KB

Example:

Issues:

Personal Opinion:

References: Sir Tmoneybag’s thread: http://forums.babypips.com/forextown/21934-30-pips-day-keeps-your-money-bay.html

4

Method #3

Code Name: Apple Cider

Methodology: Basic Price Action

Tools: Candles, trend lines, and support(demand)/resistance(supply) levels.

Time Frame: 4-h, Daily.

Money Management:

Explanation:



Example:

Issues:

Personal Opinion:

References:

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5

Genesis scalping method

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6

Reserved

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