Hi everyone. A couple years ago I got interesting in trading, so I read a few books and took an online trading course. Unfortunately this course included a trading strategy that was quite confusing and the guys were all the time doing some pressure to buy new lessons. So this started to sound a lot like scam and I just gave up at the time.
Around a month ago I came back and this time I want do the things right and in my own rhythm. I’ve been reading a lot, hearing some opinions and practicing in a demo account.
I’m more interested in being a swing trader because I have a full time job and I don’t have the chance to be all day doing technical analysis. At this point, and with all information gathered, I believe I’m finally getting something that I can call a Trading Strategy. It stills needs to be tuned and it’s still under testing, so I would like to share it with you so I can hear some opinions.
Technical analysis:
Check current trend on 1d timeframe
Check support/resistance areas and trendlines
Use Fibonacci Retracement
Check chart and canddlestick patterns
EMA 200, 50 and 10 (adapt to find dynamic support/resistance)
Entry Trigger on the 4h timefrime:
Only buy for uptrend and sell for downtrend
ADX between 25 and 50
Buy: RSI between 50 and 70
Sell: RSI between 30 and 50
Trade on retracement or breakout (with retest) of support/resistance levels in the 4h timeframe
Stop Loss: 2 x ATR
Target Profit: 3 x Stop Loss
Trailing Stop: Set levels at Entry Level, Entry+(1xSL), Entry+(2xSL). Move SL to next level when price reaches the level after.
Position size: 1% Risk - Use Calculator
Exit trigger:
Stop Loss is hit
Target Profit is hit
Manually when ranging for more than 15 days
This is my strategy at the moment. Let me know what are your thoughts.
Well its great to see you apply disciplined approach to it, but you need to understand why it has to work for you. Using publicly available techniques for trading means you trade without any edge over the market or in other words make blind steps
Thank you for the feedback guys. At this point I am still testing this strategy. I created a trading journal to keep track of all trades and create some statistics. I can share it with you once I have a reasonable number of trades.
At this point I believe what mainly needs to be improved is the entry trigger. It is still a bit confusing with too many indicators. @midwest mentioned Bollinger Bands, maybe I can give it a try.
Also the target profit at 3xStopLoss I believe it is sometimes too much. A good approach would be scaling out the position a little bit earlier at Entry+(1xSL) and Entry+(2xSL).
Any suggestions on how to scale out positions and entry triggers are welcome.
pj, the attachment is a double Bollinger Band set at bot 1% and 2% along with a CCI oscillator this one is set at 125 but I usually set it at 100 and 200 when useing the Bands.
I highlighted the channel at the top as many folks don’t like trading the channels.
When not trading across from one side to the other you can clearly see the trend following the outer channel heading south. When the PA pulls away you can wait for the next signal or trade across. However, note the momentum not indicated by the CCI, so I would stay out as it clearly indicates another channel.
While I trade from side to side most folks trade from teh center MA AKA mean out to the 2% deviation.
