journal of trader formally known as wasp

[wasp]

Could you perhaps put up a chart of these trades? Perhaps somebody who's not trading on MA's on the same instrument can give his or her comments...

Here you go...

I'm not sure how someone else would view this but I don't see good solid reasons for S/R trades.... If the first S/R won't hold, how can you rely on the second one...?! Maybe its just my view on S/R but I can't seem to get it to work out...

 

[leovirgo]

I had a long signal at 7am which needed no SL at all,

Hi Wasp

An entry with no stoploss? Does it mean the price moved in your direction as soon as you got your position, hence you can leave the trade as a freebie( SL at entry price) ? Or you have two positions hedged to each other so that you don't need a stoploss??

 

[wasp]

Hi Wasp

An entry with no stoploss? Does it mean the price moved in your direction as soon as you got your position, hence you can leave the trade as a freebie( SL at entry price) ? Or you have two position hedged to each other so that you don't need a stoploss??

It moved straight in my favour without a pip against me whch happens quite often.

 

[barjon]

Here you go...

I'm not sure how someone else would view this but I don't see good solid reasons for S/R trades.... If the first S/R won't hold, how can you rely on the second one...?! Maybe its just my view on S/R but I can't seem to get it to work out...

wasp

maybe if you think of s/r as a zone rather than a line?

good trading

jon

 

[wasp]

Interesting point barjon...

But what size should the 'zone' be. I guess its relevant to the current volitility but my only issue with that is the larger the preceived 'zone' the smaller the overall profit becomes if the range is small.

 

[barjon]

well, in the chart you put up the zone would be bounded by the two support lines you drew

 

[firewalker99]

wasp

maybe if you think of s/r as a zone rather than a line?

good trading

jon

I was just off to lunch, but that was about what I was going to say in general. Looking at your chart, I don't think there aren't enough swing points to indicate that level in particular as a S/R line. Although the difference is small, this is how I see it. But I doubt there's a way you can trade on this without having a trade going into the wrong direction first, although most of the time it's only for a small tick, but still.

 

[wasp]

I was just off to lunch, but that was about what I was going to say in general. Looking at your chart, I don't think there aren't enough swing points to indicate that level in particular as a S/R line. Although the difference is small, this is how I see it. But I doubt there's a way you can trade on this without having a trade going into the wrong direction first, although most of the time it's only for a small tick, but still.

Therein lies my point... I don't have this confusion or decision making process with MA's.... there is a signal or not and it usually doesn't require a large stop...

 

[dbphoenix]

There is no particular virtue in trading by price action alone. Some people can do it; some people can't. Some people can trade intuitively; some people can't. But regardless of how one trades, the process of developing and testing a strategy doesn't change. Whether one uses S/R, patterns, Fib, Pivot Points, MA XOs, MACD divergences, ADX/DMI, CCI, etc etc etc, he still has to work it into a consistently profitable strategy.

The idea that indicators are "easier" because they require so much less judgement is seductive but misleading. If one uses MAs, for example, he has near-infinite choices regarding lengths and MA combinations, particularly if he incorporates simple, weighted, exponential, etc. And there are bar intervals to choose, timeframes, stops, triggers, targets, and so on. Copying somebody else's system doesn't work. If it did, everybody would be doing it and be happy.

And, yes, markets do change. You used to be able to set your watch by the 1230 reversal, but that's long gone. ORBs used to be a virtual ATM. Gaps used to be easier to play. But that's life.

The point, again, is not whether one trades by price action or by indicators or by planetary alignment. The point is that whatever one's choice might be, he has to be willing to translate all of that into a consistently profitable strategy. Wasp is clearly willing to do just that, no matter how long it takes.

 

[Joey]

Therein lies my point... I don't have this confusion or decision making process with MA's.... there is a signal or not and it usually doesn't require a large stop...

Have you considered using 20ema , sort of a filter , to focus on longs if price is above that in conjunction with the ones you use and vice versa.

Interesting combo, 12/13 , any particular reason for these, appear to close, normally it is 8/18 or 10/20 or 5/13 periods. presume yours are Exponential on 15min charts.

Also do you base your entry on 15min bar or look at lower time frames , 5min.

 

[wasp]

Have you considered using 20ema , sort of a filter , to focus on longs if price is above that in conjunction with the ones you use and vice versa.

Interesting combo, 12/13 , any particular reason for these, appear to close, normally it is 8/18 or 10/20 or 5/13 periods. presume yours are Exponential on 15min charts.

Also do you base your entry on 15min bar or look at lower time frames , 5min.

Thats cool joey thanks,

I don't have an issue with my MA's at all I think they are great. I use 2 close together as they have a slight twist to them to make them work nicely together. I have tried many combinations and for me, and my requirements, they are perfect.

The issue I was having was I should trade via price action or intuition or by understanding my market better, which I would still like to do but nothing I have tried as yet produces consistency and profitability like this that also allows me have nice tight stops as well.

My only issues at the moment are the FED and quiet, range bound choppy markets. I have contingency plans for these situations and limits to stop myself blowing too much money. The old issues of price vs indicators vs whatever is now forgotten. Even the discipline problem is gone now mostly.

So like most, I am very happy till we get tight range bound markets but unless your a scalper, who does like them!

 

[wasp]

Thursday

 

[wasp]

Friday

 

[wasp]

week One:

M > -5
T > +5
W> +43
T > +154
F > +18

TTL > 215

week Two:

M > +16
T > +64
W > +74
T > -3
F > +32

TTL > 183

week Three:

M > +47
T > -32
W > +25
T > -25
F > +55

TTL > 70

week Four:


M > no trading
T > no trading
W> +23
T > +51
F > +71

TTL > 146

Stats:

4 weeks
18 days

Trades > 83

Won > 47
Lost > 36

Win ratio > 56%

Total pips > 614

Weekly average > 153
Daily average > 34
Average trade > 7.5

Current lot size £20 pp = £12,280 for the 4 week period.
__________________________________________________

 

[wasp]

Four weeks up

Well, today ends the busiest economic week for ages and all finished on NFP day. Its also the end of August(ish) and a 4 week stint here.

Although up on the month, I can't say I am overly impressed. Its not been a good month for big intraday swings and moves which, ironically, is exactly why I started the journal in the first place so I could improve discipline and stop early exits. The prior month and the week before the start of my journal I had been taking 60/70 pips and kicking myself when it moved another 100 afterwards, this month, its been the same but just with a zero missing of the end. Not to say I'm not happy with the overall financial outcome, the point of the journal didn't really achieve its goals.

A few things have been learnt en-route which has been good and thanks to all those who have contributed and helped. I have now got 4 brokers I am trying out (Oanda, Interactivebrokers, Refco/Man and ahem, capitalspreads!) Trying these different brokers has helped me see things differently and a wider view and how much easier it becomes without dealer intervention and questionable bias. Although, that said, the others have their problems and I won't discount CS just yet as they have not been too bad to me of late.

I still intend to learn price action and S/R and intuition and try to understand the how's and why's behind Cable's behaviour as I do see it more each day but as yet, I am not willing to put my money on it as the MA's are producing a better profit en-masse.

I am more than happy with my strategy now and after surviving August up in profits after having the worst month to date looking back via tests, and I shall continue to trade it along side learning more. The issue of discipline I think is now gone as the reverse problems (tight, range-bound, small moves) have taught me that anything can happen tomorrow so taking a half decent win without a reason is pointless as its the bigger overall picture that matters.

I do intend to trade FED run-ups still but its the one time I shall reduce my size and trade with caution as they can be hell, but in the end, every day is just another and good/bad days happen regardless of economic announcements or not.

One thing I have leant though is thus: Always go on a loooooong holiday in August.

 

[dbphoenix]

Wasp, a lot of traders -- particularly new and newish traders -- would be thrilled to end August at BE, much less with a profit. I'm impressed.

And don't forget why you started the journal in the first place, or at least one of the major reasons: discipline. If you really and truly have that out of the way before the September to November period, you ought to do very well indeed.

As for the S/R, you may want to read the post I made to Dan's journal about that. There's more than one kind of S/R, and you may find something more mechanical to be more suitable.

 

[trendie]

.... = £12,280 for the 4 week period.
.... I can't say I am overly impressed.

Thats almost as much as I make in a day!

Seriously, good discipline has gotten you 600+ pips.
And from good old, much-maligned Moving Averages.
Bask in your undoubted achievements.
But, come Monday, put it all to one side, and show the same resolve for September.

Have a very good weekend. Excellent work.

 

[wasp]

.... = £12,280 for the 4 week period.
.... I can't say I am overly impressed.

Thats almost as much as I make in a day!

Seriously, good discipline has gotten you 600+ pips.
And from good old, much-maligned Moving Averages.
Bask in your undoubted achievements.
But, come Monday, put it all to one side, and show the same resolve for September.

Have a very good weekend. Excellent work.

Cheers Trendie,

Thats the thing isn't it. I have had a good month although I didn't particulary like trading it at times and found myself getting annoyed but still, not going to moan too much about 10k.

Now its the old discipline factor again. (Hopefully) September will have some big moves but can I forget August and start Monday as it is the first day of my trading career and keep to it. The financial benefits should be enough encentive so hopefully I will keep it up.

No, scratch that, I will keep it up!

 

[wasp]

Wasp, a lot of traders -- particularly new and newish traders -- would be thrilled to end August at BE, much less with a profit. I'm impressed.

And don't forget why you started the journal in the first place, or at least one of the major reasons: discipline. If you really and truly have that out of the way before the September to November period, you ought to do very well indeed.

As for the S/R, you may want to read the post I made to Dan's journal about that. There's more than one kind of S/R, and you may find something more mechanical to be more suitable.

Cheers db,

The discipline factor I believe is almost nailed I reckon, especially with a profitable month like this one. If I can do the same as my plan next month and not 'think' too much and keep to it, I'll be very happy.

Who is Dan BTW... Is it in the old journals?

 

[dbphoenix]

Who is Dan BTW... Is it in the old journals?

Sorry. FX_Cowboy. He's puttering around with S/R also.