I will post all my trades here for 6 months from today until Oct 21 2024. This is to encourage me to stick to my system and don’t mess it up. I hope that this exercise is enough for me to do “good” eventhough my audience are all anonymous and do not know me personally. I think this is better than to trade on my own. At least I will have some sense of accountability to stick to the system because I know “someone” is watching.
Entry Criteria:
I will trade the daily charts.
I will use weekly charts just to confirm the direction of the trend.
I will use the indicators bollinger bands, stochastic and ATR.
Look for the “extreme” stochastic above 80 or below 20.
Compare the price of this extreme to the previous extreme.
The characteristic of uptrend is higher high and higher low and for downtrend it is lower high and lower low.
This criteria will define the direction of the trade/trend.
Look for the slope of the middle bollinger band. It should correspond to the direction of the trade.
Check the slope of the middle bollinger band in the weeklies. It should correspond to the direction of the trade.
Wait for the price to touch the middle bollinger band before deciding to enter the trade.
If the stochastic is already at the extreme for more than 2 days. I can enter the trade.
If the stochastic is at the outer extreme (more than 90 or less than 10). I can enter the trade.
If the price is at the levels of support/resistance. Specifically round numbers and previous swing high/low. I can enter the trade.
If the stochastic lines already crossed over. I can enter the trade
I will only risk 1% of my portfolio on each trade, but I can split it into two trades of 0.5% each.
I will set the initial SL not less than 1 ATR and not more than 2 ATRs.
I will set the initial SL behind round numbers and/or previous swing high/low.
The initial TP is the previous extreme level.
The trade should have a risk/reward ratio of more than 1:2
I will not risk more than 5% of my portfolio at any given time.
Trade Management Rules:
I will implement the maxim “Cut your losses short and let your profits run.”
I will manage my trades by using trailing stop and I will determine the levels and set it manually.
When the price moved 2 ATRs from my entry price, I will move the stop to at least breakeven to remove the risk.
When I see a fuel candlestick in the direction of my trade, I will move the stop to at least breakeven to remove the risk.
I will hide behind round numbers and support/resistance levels to protect the stop.
When the profits reached 3 times the risk, I will put the stop at the extreme of the previous/yesterday’s candle.
When the price hit the initial TP, I will put the stop at the extreme of the previous/yesterday’s candle.
When the price hit the outer bollinger band, I will put the stop at the extreme of the previous/yesterday’s candle.
