My pair selection is based on Dennis’s idea of SW pairing chart. I look for a currency that move up or down in rank and pair it with currency that move up or down in rank in the opposing direction. After i have selected the currency pair that i want to trade, i use technical analysis to interpret if that particular pair is doing a pullback or trend continuation. After which, i will decide if i want to counter trend or follow trend. Normally, if i interpret prices as doing a pullback, i will counter trend trade, and if price is in a trend continuation phase after a breakout. I will use a trend following system to time my entry.
However, instead of using JPY as the common denominator, i use USD as the common denominator and rank them accordingly. The reason why i use USD instead of JPY is so that i can easily add 4 other currency into my SW chart.
Namely, TRY, MXN, ZAR, SGD .
Below is a screenshot of my SW chart.
There are various ways to interpret the chart. At present, i’m still in the mist of optimizing my way of interpreting the SW chart. I’m still experimenting as per se. The hard part is not the chart construct, it is the accurate interpretation of whether a currency is going up or down. Sometimes, the ranking of SW chart and technical analysis simply doesn’t tally. Which explain why i counter trend till my account got busted. It seems to still best to just follow the trend. We can only make our best attempt to interpret the market, when market trend gets choppy, every interpretation just get baffling.
If you follow my thread, you will realize that i’m a pretty hardcore trader. i’m basically trading every market session 24/7. In Singapore, my evening time is around New york and London overlapped session. I usually do my pair selection around that session. Most of my signal is after the closing of London session. I have a day job, thus i can only do my technical analysis during the evening timing.
Here’s is an update on my progress,
Previously, i busted my $500 account. I reloaded a $2000 on the 25th Sept 2018. My equity grow from a starting balance of $2065 to $2525 on the 10 Oct 2018. After that i was stuck with demo trading for a while. On the 17th Oct 2018, i transferred $500 to my Dukascopy’s Live FX trader contest account. I sustained a huge -$233 losses from my USDZAR trade on the 17th Oct 2018. Needless to say, my contest account also went into the red on the same day. For my contest account, the day end balance was $430. Today, i managed to re-gained my losses from GBPJPY short trade.
Current live account balance : $2231
Current contest account balance : $510
Net profit from my starting balance of $2065 to date were,
(2231+510) - 2065 = $676
(676/2065) x 100% = 32.7%
(my current equity gain since 25th Sept 2018 till 18 Oct 2018)
Today was an quite emotionally turbulent day for me. Yesterday, i lost a huge chunk of my money due to USDZAR trade. Based on my previous self-imposed trading tilt breaker rule , i was supposed to trade demo if i were to lose One trade. But, i was in a contest and i don’t want to lose. My mind was torn apart as to whether i should continue trading or not. Eventually, i gave in to the Devil and continue to trade both of my live account and contest live account. The excuse i gave myself was technically the GBPJPY short seems too good to give it a pass. GBPJPY did crash today, and i’m glad i didn’t stop trading today.
On hindsight, i just realized it was damn troublesome to keep login in and out to enter trades on both account. I need to seriously give some thought over this matter.
It was fortunate that my SW chart didn’t fail me today. Very Lucky… I’m glad Lady Luck is on my side today. I sincerely thank the Great Heavenly forces up there giving me the chance to recoup my losses from the USDZAR trade.
My personal live account portfolio statement is above
My contest account portfolio statement is below
Below is a sceenshot of my current ranking in Dukascopy’s Live FX trader contest.