TYG's Trading Story - Thoughts, Trades and Technicallity

Trading Discussion Trade Journals
23

Thoughts: Trading is similar to open a business

When you open a burger stand, you have to know how to make burger. You need to prepare equipment and things related to having a burger stand. Let say, for each burger you sell, you make profit $1. Then you can sell 100 burger for 1 day, your profit will be $100.

If you sell your burger $7 each, that means the cost of a burger will be $6, you need $600 as the capital. Your profit will be 100/600 x 100 % = 16%.

That looks big, isn’t it?

Before make any conclusion, we need to calculate the capital and cost. For example you need to by kitchen equipment, promotional stuffs, cooking material and etc. There are also cost to handle garbage, rental and permit to open the stand. So in total let say we need 5000 capital to run the business. There is also expenses need to deduct every month for example 1000. You also need to calculate the cost of employee and yourselves to run the business. After all, you probably will have 5-8% profit each month.

The same thing happened in trading. You need to think capital, profit you have on every position and the cost of trading. When you can reach consistent profit about 5% / month, it’s similar to run a business in real.

The similarities are:

  • You need have a long vision to run a business. The longer you can commit, the higher the opportunity to get rewarded.
  • You need enough capital to run a business. You have to breakdown the requirement to have accurate amount of capital to run the business.
  • You need to know the cost of running the business. In trading that will be the risk.
  • You need to find a good spot to generate profit. It must be a joke to sell burger in cemetery. In trading, where to open a position.

In short, to start business you need to understand these points.

I often got asked, can I have a good income from trading?
I was asking the definition of good income. It was 500 USD.
I asked again, how much capital the person had. It was 500 USD.

Immediately, I got my mouth shut. :expressionless: …

1 Like
24

Thoughts: Trading Changes Path of Life

A lot of unexpected thing in our life. We just need to give ourselves a chance to explore them.

It was back to end of 2006. Once I left my mentor, I pursued trading by my own way. I bought many books, went to many courses and joined many trading communities. Once was Baby Pips :sweat_smile:. My intention was only one, to learn more.

After a long time, I finally could construct a strategy from every information I got. I traded for 3 months and I successfully increased my balance up to 60%, more and less. Boldly, I shared my result to my mentor, I was in his mailing list. Nothing happened in the beginning, after more then a month, he contacted me.

He asked my trading method, I didn’t tell much. In short, he explained he was managing fund from few companies. He asked if I had interest to help him. After a long talked, I agreed. I wanted experience, the benefit was also interesting. :money_mouth_face:

Since then, I was his helper to manage fund from several company. A long the time I developed an EA. The EA could mimic my performance for around 60%. The EA then used to manage some corporate’s fund.

Since I was graduated from Computer science, I was then asked to help him to establish a broker. I handled all issues related to computer, such as installing server, trading infrastructure, Managing MT4 trading server, I finally knew how to setup a broker from zero. I also learned how to operate a broker. In the beginning, we were white label broker, after less then 3 months, we were converted to a full white label broker and got self-owned server to manage.

It was amazing to look at how our clients made orders. We earned only from commission or spread. Profit was huge, same thing with to operational cost. Later I knew, many international companies were using CFD as hedging tools for their business. Even there were only few of them, the portion of their funds were extremely huge. I then realized the truth of Pareto Principle: on many outcomes, 20% are the cause of 80%. 20% of our clients were the owner of 80% of our trading volume.

This was the key that allowed me to have deeper experience with the world of broker. I learned how important regulation and license for broker, how dangerous is an unregulated broker. These knowledge enriched my trading’s method. It changed every single thing on how I saw market.

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25

Thought: Reference to Learn Mechanical Trading System

I’m not selling thing here. This is just one of the books I read. It’s good enough to guide who want to learn mechanical trading.

26

Technicality: London Breakout Strategy

After read this article few times, I am interested to create an EA for it.

Let find out its trading stats. If it’s good I will post here the result.

I really need new perspective to see market. :thinking:

27

Technicality: High Frequency Trade / HFT Mode

Talking about HFT, it’s simply about an engine that open a lot of position in within a period. It can be 5-10 order every period, for example 5 minutes or just during a critical moment the engine will work vigorously, unstoppable.

HFT needs condition to work. It wont work randomly as it needs extreme market condition, we can call it volatility or instability. By understanding this sentence, it has told as many information about how to do HFT.

The key elements to have profitable HFT depends on 3 things: Broker, Instrument and Momentum.

HFT can only be done under specific broker. You can’t have HFT to be run on every broker. We need a real broker, preferable a well regulated one. We need to be under an A book scenario. We can actually evaluate a broker by running an HFT engine on it. The better a broker, the better result we may have.

HFT can’t done on every instruments. For CFD different instrument need different algorithm. The simplest algorithm are mostly targeted to Stock and Index. HFT needs market inefficiency. The knowledge of market inefficiency needs a long time research to know a very detailed market behavior. Most people who know it wont share it with others. Reason is simple, they have sacrificed a lot of time to discover it. Giving it for free to others, it will be ridiculous.

The last is the key of having an HFT, we need specific momentum. HFT can’t be done always. Most HFT can only done on specific condition or time, depends on the algorithm.

Resting time is up, continuing again what I supposed to do … :roll_eyes:

28

Trades: EURUSD Account Safe Trade

Screenshot from 2024-09-11 15-14-16

I’m wondering on how we can trade EURUSD safely. I’ve tried my best to have 3% profit / month. When market is good, we can have better performance. I’m still trying hard to increase the profit without putting more risk into my account.

The safest method for EURUSD is by waiting correction on daily chart. As it can be seen on the record above. :thinking:

29

Thoughts: Routines for Trading Activities

Many time, being asked the same question about how to be a successful trader. The same question is given, you need to love it first.

Most of beginners think only how to get profit in trading. It’s true, however, none can have success by having the thought in our mind. All of us love money, but money will come when you are good with what you do. To be good with what we do, we have to love what we do.

By loving what we do, we are eager to do a lot of thing to learn it. And it will give opportunity being good at it and finally giving us a lot of money.

I have also sacrificed a lot in the beginning of my progress. The hardship will make make us strong. Our love will give us strength to learn and doing endless research and studying. Until now, I’m still do a lot of thing to learn and improve my skill.

Today, I’ve just finished my research about MA and CCI. I made different EA to simulate the performance of these indicators. I tried different methods to use them to identify price action. A few days have passed, but I still has no conclusion yet. This week has been dedicated as the week of MA and CCI. I won’t try other methods until this weekend.

This is how I express my love in trading. I spend a lot of time in research. I hop from one indicator to others. I mix and match indicators, combine them to find a good wayto use them. I have been doing these since 2005. :no_mouth:

I’m very tired. I have been coding for 15 hours today, accompanied by a cup of tea and an old cat. I promise my cat to have a special meal when I find something new. My cat looks at me and says … purrrrr :smirk_cat:

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30

Thoughts: MA and CCI Corelation

I have found 16 ways to use MA with CCI. If I want to sell it, I need to give a good name, to boost the sales :grin:

Perhaps I will name it MACCI. When I have done the Trading Bot, I will name it MACCI Bot. Or Ultra Macci, probably I will get contacted for another spin-off from Ultraman? :thinking:

Ultra Macci best performance is for identifying Price Action Pullback. Ultra Macci has fate with EURUSD, XAUUSD and GBPUSD. When Ultra Macci is doing averaging, it can generate profit 100% within a year. I need to verify Ultra Macci with 10 years historical data later. It probably gets killed somewhere in 2015 or 2021. :thinking:

The sad thing, Ultra Macci has allergic reation with Cryptocurrency. :cold_sweat: BTC, ETH, XRP, HBAR, SOL can defeat Ultra Macci in an instant. :unamused:

I’m thinking of giving extra weapon for Ultra Macci. Bollinger Band looks nice for most Crypto Currency. Bollinger Band Extreme should be workable for crypto.

So when my Ultra Macci performs with crypto, it will use a secret weapon so called Ultra Macci Extreme Band! :sunglasses:

Imagination of a trader after a full day hectic work … :relieved:

ultraman-300

1 Like
31

Thoughts: The Fate of The Trader

I’m always curious about how other traders manage their life. Do they really have that lovely life, heavenly, full of luxulury, go around by private jet and cruise. I haven’t mention their castle and collection of sport cars. :thinking:

We live on the same earth, having the same clocking time, 24 hours a day, why are the experiences so different ? :roll_eyes:

Day by day, my trading activities are not much different compare to running a business. Data preparation, market analysis, selecting strategy, and monitoring after execution. It’s a hellish everyday routines. I haven’t mentions the need to have endless research in order to maintain our skill handling market. :tired_face:

It’s not a jealousy, most of time those are the art of attracting people, then begin the hunting season. Do you know who are the prey? :neutral_face:

I am having headache, taking my off day for market research. Few minutes ago a forex mentor called me for some advice. He insisted me to review his new “product”. Who is between us the mentor? :rofl:

32

Trades: EURUSD Account Safe Trade

Screenshot from 2024-09-25 19-48-27
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I will update new algorithm next month. I will focus more on correction :thinking:

Link to [ Past performance ]

33

Trades: EURUSD Structure

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34

Trades: GBPUSD Structure

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35

Trade: EURUSD Structure

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36

Trade: GBPUSD Structure

GBPUSD is still under strong trend. Safest approach is waiting for a correction. Risk taker can start to short. :+1:

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37

Trade: XAUUSD Structure

No much can be done for XAUUSD. I’m still waiting for market to settle down. Swing has been running, no more action until breaking current structure. :thinking:

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38

Trade: XTIUSD Structure

XTU is still moving to the target. No action for now :thinking: … need to monitor if trend is still intact.

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39

Trade: USDJPY - A High Risk Opportunity

Trading is a risky activity. Always knowing our limit and enjoying it. :slightly_smiling_face:

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40

Trade: USDJP - Hit SL

As mentioned before, it was a high risk opportunity. For me, it was still an opportunity I could handle. So I will, continue to find an opportunity on next layer. Never give up, keep continue :thinking:

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41

Trade: GBPUSD - High Risk

It’s common when good opportunities past, the next few days will be giving high risk opportunities. It’s a cycle in trading. High risk doesn’t mean we can’t trade. We just need to adjust our money management (MM) better. Less attach with our emotion.

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42

Trade: EURUSD - Mixed Formation

Trading is a very interesting job. We have to be versatile and dynamic. Our mind can’t be locked by one perspective. We need to be able to see market from every angle.

Right now, we just have moderate position for EURUSD. There is just an indication we can do short as well, when a long position is still on. As a trader, we need to follow our operational procedure. Some will get confuse, since both opportunities have high win rate :sweat_smile: so money management is the only way to survive.

We can close all or half of long position, open a short with calculated SL. Since our RR is more then 3, nothing to scare of. The key is on our MM.

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