Another difference from SR Player strategy was when you entered the trade was a second retest for that S/R level … but in fact was a good trade. I appreciate a comment from SR Player on retests.
My biggest problem with this strategy is to define TP … when I see that I am in positive territory I must think and stop myself of not closing the trade and let it go …
for me it was not a retest, otherwise i would not have taken the trade! in my eyes it’s just consolidation, a breakout and slow return to that level. no retest for me. where do you see the first test?
Sometimes the indicator wont retrace 100% back to zero and the trade works, thats trading I suppose…So you also use hidden divergence to trade with also, good man.
Hey SR,
Just curious as to your thoughts on the eur/aud trade. I’m still in, up 100 pips or so and it’s found some congestion. My trigger finger is getting a little itchy and I’m resisting the urge to take my pips and run. Any advise?
I agree that was the first re-test…What was also great about this kiwi dollar short was that there was a re-test on the weekly trend line also at the same point adding a convergence of strength to this trade.
What you say is true in that it would be pointless to use an automated system that is not profitable. However, if it were truly a complete automated solution, it would have no choice but to be profitable. I think most people approach automation from a “luck” perspective. They think that something magical or exotic exists which, when these “perfect” circumstances appear will give the trader this super edge to get rich from. Usually they are waiting for the next big move to catch. Usually people end up on the “wrong” side of the move.
If subjectivity, you are referring to adjusting exits or entries, this can be logically explained and coded. For example, I have an automated system that has plenty of customization of different parameters: lot size, pips between entries, exit TP, but all the core aspects from entry to exit are mechanical. Imagine you own a bakery and can bake the best cookies. This is fine to do yourself by hand, but as sales increase, it will get to a point where either a) you hire someone to produce the cookies or buy a machine that can mix and bake cookies for you, or b) continue to do your best at only baking them yourself. Obviously a) would put you at a much bigger advantage to grow and have more sales than you could ever have with doing it all alone, but then again, maybe you just like to bake cookies all day With any level of automation, there are tradeoffs; but since the common goal is to be profitable, automation should beat manual every time when it comes to repetitive work.
The video and attached spreadsheet in this article shows how traders can adjust the risk to match their account size using a series of trades. Since you are a math guy, you’ll appreciate the objectivity. I didn’t upload it here in babypips yet, but I will do so maybe next week. Website is long overdue.
You are on the right track in that you should automate as much as possible, even if it isn’t fully automatic. This maximizes your TIME, which we all have only so much of. You can supervise many different pairs instead of only one or two.
another update on my stats using my version of this system this week
+363 pips closed (after losses and spreads)
+97 pips floating
=> ~32.05% gain (considering also the floating profits)
10 win trades, 5 lose trades
cheers
p.s.: i’m thinking about opening a thread for trading log purposes and also to get some feedback to my trade setups, maybe get helpful advice for improvement and so on. also i won’t need to “spam” this thread with my stats anymore i would also post the trades i’m about to take, sometimes if i have the time also provide a chart and explanation, but that would not be the rule. if anyone is interested in me opening a trading log thread please let me know.
just had lunch and feel too full to study so i thought i could post something.
so eur/aud is finally coming down again some pips. lets see if it continues. i’m thinking about adding 1 or 2 more positions on eur/aud in the next couple of days. i will wait for some further down movement. i could imagine that there will be some retracement because of strong support around 1.28, in addition there is also a 38.2 % fib level. if it will go back to ~ 1.2875 i will short again.
after that, assuming it will finally breach the 1.28 level and continues a bit further down, i would short again when it retraces back to 1.28, the now turned strong resistance. all these shorts could stand by themselves, however, considering the very strong weekly topside resistance from which i initially shorted the first position, gives us also the hint that shorts would make sense in the next days.
just something i will keep an eye on, this does not mean that i will definitely trade these levels. it is all assuming quite a bit. setups could change because of some movements. for example if some of the named levels of interest will be tested before the test which i just wrote about, then the trades would become invalid, because just like SR player i would only trade the first test.
With any level of automation, there are tradeoffs; but since the common goal is to be profitable, automation should beat manual every time when it comes to repetitive work.
i would also post the trades i’m about to take, sometimes if i have the time also provide a chart and explanation, but that would not be the rule. if anyone is interested in me opening a trading log thread please let me know.
but if you are ok with it i will just post some more stuff here.
