Now this post is just a first of many or rather i will have daily updates. I am starting my forward testing journey from today and will be documenting my success and/or failures and will share it with you.
A bit of my background: i was exposed to trading by a friend whom i met after a while and he “excitedly” shared, how he was makin easy money trading crypto. A certain FOMO kicked in and i was like… holly shyt on the friggin cracker!! I’m missin out on easy money. So i jumped in with a $1000 investment and i shouldnt explain how badly i got burned. Thats when i started researching or rather seriously learning trading. Crypto burnt me bad and left a bad taste in me mouth and i decided i will not be trading it to register my protest. Guess wot as i focussed learning forex, my friend called and told me how crypto was down. Anyway, i have a fulltime job and its hard fr me to sit in front of a computer and stare at charts, i needed a system where i set my positions and then check ‘em late at night. Swing trading was a way to go for me and also im quite dumb. As dumb as i look… so all this technical analysis and support n resistance and all was just not for me. I needed a mechanical system of indicators that do all the work for me. No points in guessing im lazy as duck too. I came across this VP guy on youtube with his NNFX system of trading. Love the idea of trading on a daily timeframe with minimal work and maximum returns lol (thats not wot he says… its my wishful thinkin). Now he sounds very talkative, a nerd tryin to be cool kinda guy. Or in other words he sounds a carbon copy of me minus nerdness. 6 months of listening to his videos, i came up with a system and today im going to start trading on demo or forward testing without backtesting lol (see how lazy i am…).
My system includes a baseline kijen Sen (BL), first Confirmation indicator SSL (C1), second confirmation indicator DiDi (C2), a volume confirmation indicator WAE and ATR for Take profit and Stop loss. I will be trading every single combination of majors where ever i get a signal. I will be taking two positions one for 1:1 RR and second trail stop if its in a trend but will move SL for second one to breakeven as soon as the first TP is hit. Rules if entry for Long: price trading above baseline, SSL cross up, DiDi cross down (thats wot i learnt from VP guy and trsut me his way of having DiDi inverted is the way to go), WAE above explosion line and dead market line. If everythin aligns i go in with 1.5 ATR as SL and 1 ATR as TP. And same inverted rules for short.
Now first day, three pairs gave me Long entry signals AUDUSD, NZDUSD, GBPUSD and fourth one was just not there yet but i was like meh im too lazy to wait another day… lets go in so i went short on uSDCAD. for USDCAD, price was above baseline and both C1 and C2 crosses gave entry signals, i went down from 1D to 4H timeframe and it seemed a consistent downtrend on 4H timeframe so i went Short on daily. Now if that downward trend reverses on me today i will have a loss on CAD and it will be a lesson. Now my demo has a $1000 initial balance and all my positions are 0.01 lot size (1% per position as i have two for eas pair)
Wish me luck guys, i will post an update tomorrow.
Day 2:
Not that anyone would be interested but i am late in adding my update. This morning i wokeup to check on my positions before daily candle close at 7am Sydney (AU time), and found all my positions were in profit. And JPY was showing signs of rapid rise… i decided to close positions on NZDUSD and GBPUSD as they seem to be heading into a pullback on daily. I was disappointed and was hoping that atleast they will hit my first TP before heading into a pull back but i guess my TP was quite further apart… i need to review my ATR and adjust periods. Anyway most of you might know pullback on daily timeframe aint fun, its like you sit there and see your position go the other way all day and then you hope the next day it starts its climb back in your direction and not continue pulling back for another and/or more days… anyway i closed off those positions and i guess it was good because when i checked later USD had decided to change direction and my other IS dollar positions were heading fr a loss… i had to quickly close of uSDCAD as well. Anyway i had profit on my first day and Gain on Account is 1.2% on my first day of trading. Not too bad i guess… anyway JPy was giving alot of signals and i went in on EURJPY, CHFJPY and also GBPNZD gave an entry signal and i went short on it as well… which all are in loss after 12 hours but London session (8am) just started and im heading home after work (5pm AU time)… so hope we can see some turn around. Oh btw i kept AUDUSD as i have a feeling it will be out of pull back in a single day (fingers crossed!!).
Day 1: lesson 1: do not over leverage one kind of currency… i had too many USD combinations in all my positions and as USD turned direction every position i had was going down… and today i got all my positions on JPy and everythin is in loss
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Day 3:
Panic selling and taking a break!!
As i learnt a valuable lesson not to leverage or have too many positions on same currency, all my positions were in JPY combinations nd saw full 14 hours of return jumpin between profit n loss and at one point when everything was in profit, i lost control of my emotions nd closed off all poisitions fearing all will be lost again… even positions giving in good results… a bit disappointed in meself but its ok im emotionally unstable nd gota work on it now. So summary!! No trade open today im taking a break nd i have 2.3% gain on account in three days of trading. Made a whopping $23 on $1000 account… quite an achievement aye
Lesson Learnt today: emotional control. Its ok sometimes you have bigger losses but you should not panic and start selling everything out of fear of going back to basic nd start from zero. I did that today with GBPNZD pair was going in loss and wiped half my GoA, i paniced nd sold everything nd doubled my GoA but i would have made more only if i had control over my emotions. Fear or panic aint good in trading.
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Day 3:
I was quite busy and didnt get time to write updates for day 4 and 5… but as i said in my last update on day 3 i plan to take a break… but guess wot!!! I didn’t!!!
I got some time during the work hours in a boring online meeting and i got in on my trading view and thought “hmmmm lets do something i havnt done yet!! And voilaaaaaa i havnt touched gold yet… though i hate gold jewellery but wouldnt mind getting some gold after all… i would like to be rich as duck… and i started messing with it on hourly chart and guess wot!! Before you know… you are in a position and all your profits burnt to death … so day 2 end i was up 2.3% in profit and at the end of day 3 i had lost it all and also was down 1.8% on the original amount (initial account balance). Was extremely disappointed in myself. Im dumb but gosh that was stupid of me 🫣
Day 4:
I checked and no pair was givin me any signals… well a few were givin a few hints but none was a “sure sure” thing so i decided to not go into a swing trade instead check those “maybe maybe” pairs during the day on hourly chart and see if i can get any setups. Guess wot i got some good setups throughout the day and i recovered all the losses. Got me thinkin i should check on my hourly trade seyup during the day. Its basically my swing trading setup with tweaks to support hourly timeframe instead of daily. But its alot of keeping an eye on the chart during the day for me!!
Now i am up 0.06%. Yeah basically im back to square one but atleast i am not in loss.
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