Hello my dear friend @The_Baller
After quite some time of silence, I am here to say big thanks for your thoughts and that you are on the roll!
Your thread has been educational enough for all of us, or at least for me as I was able to setup an dedicated live account where I implemented your techniques whilst putting my mindset at ease. I have read everything what you have posted thoroughly and then applied it to own trading style.
Here’s some key points which I adhere to at all times:
- No more than 4 hours of analyzing weekly
- Trend is your friend without any exception - Trade only in the direction of trend on Monthly
- Drill down to weekly and find an entry point somewhere
- Eat pizza (still trying to stay healthy so there’s only one large pizza a week with sides)
- When trade is going against you on daily or weekly, do not hesitate to scale in as it is only side effect noise. Look at things from bigger picture (monthly)
What I’ve got so far:
- 27 trades done
- 24 winners and 3 losers (first one and second second one was due to the tight stop loss and as soon as I got kicked out the trade turned in my favour; third one was incorrectly trailing stop set to B.E where swap charges made the trade red) - evidence below
- profit factor is 9.89 so far and balance gain is impressive 121.38% as of today.
- longest trade over 1 month and week on USDJPY and this is due to my bad entry points (this still needs to be improved) but I am still totally comfortable as the trades are already going in my favour and I erased around 20% equity drawdown to as little as 1%
Conclusion: I have been in forex game over 7 years now on self-educational basis, started on 5 minutes charts to daily charts, but on daily I always got distracted by reversal 4hr candles where I couldn’t stick with the initial plan which led me end the trade in loss.
I have met tens of ‘professional’ traders, attended seminars, read books and watched hundreds hours of videos and webinars. I didn’t make any money. Until I discovered this thread and realised stuff like ‘stop loss manipulation’ and smart money, bigger picture, etc etc…
I started to quite understand why all the ‘educators’ and Forex schools teaches the same techniques which simply do not work and do not make money. It is because there are broker firms standing behind them (or support them on incentive basis) and the goal is simple - to open and close as many trades as possible no matter what the outcome will be. Because it is the commission what makes money for them. I am fine to open just 10 trades per month if it makes me 30% gain on balance rather than 50 trades with 51% success.
Also, I am not dependent on the account performance, I don’t do withdrawals and am not greedy. I do a normal 9-5 work and the goal here is to leave it at some point. That’s why the initial deposit was as little as £500 and if blow it up I wouldn’t mind and will start this again with bigger pot but smaller sizes.
With all this in mind I believe that there is a possibility to get odds in our favour and make money. I am very happy with the results and let me know what you think.