Hi and welcome to my “Trending Now” trading journal.
As the astute amongst you may have already guessed, this is going to be a record of my thoughts and ideas and trades, using the fundamentals of trend trading.
The main tenets of the strategy are high risk to reward ratios (1:5 - 1:10 in many cases) and very selective rules for taking positions.
On average, trades will use stop losses of 10 - 20 pips, precision entries being vital to the strategy.
The main focus of the strategy is to maintain an extremely low draw down, as such, trades will risk only 0.5% per net position on any one pair. The strategy will usually only trade one pair at a time but perhaps two in strong trending conditions.
The trend will be defined by looking for the strongest SR levels on daily/weekly charts and then looking to see the current trend on the 4 hour chart.
When there is a trend present on the 4 hour chart and we are trading towards, or away from, a strong SR level, we will start to look for pull backs on the 1 hour and 15 minutes charts.
We will look for harmonic corrections in the pull backs from small charts (5 - 15 mins) to time entries and trades will be entered by limit order.
Target gains are 5 - 10% a month, keeping inside of 10% draw down at all times.