Munchie "the noob" dude's Virgin Trading journal

[cmmichaels]

very interesting to see it develop, trading divergence and convergence on macd is something new but i will definitely explore it further, thanks!

i will post my strategy for tomorrow, im just doing a spreadsheet to log my trades!

Hello mate sorry for hijacking your thread before, I'm still learning as well but I've read a hell of a lot some good some not so good but judging by some of the things you are asking out of all that I have read I would recommend a few things that will clear up a lot of your questions:

• Do the babypips school it takes a while but you will know the answer to everything you have asked
• Read technical analysis of the financial markets by john j murphy
• Read trading in the zone by mark douglas
• Read this journal all the way through and watch the videos - http://

www.trade2win.com/boards/trading-journals/88320-my-journal-prop-house.html

I hope that helps good luck with everything

 

[JRP2891]

Hi md, it's good you're noting observations on your indicators so far, however be careful not to read too much into only a few examples. Typically I'd want to see the results of over 300/400 trades minimum before I can say something has a higher chance of working than not.

 

[munchiedude]

hi guys and thanks for your helpful feedback!

first to cmmichaels: thanks for the resources you have listed, i have already done the babypips training but it was a few months ago when i got distracted off course and need to revisit that. the other resources are great ideas and i will go through each one by one, thanks!

JRP2891: i very much appreciate the mention of a typical sample size to compare results against as i was wondering what number of trades need to take place before you can judge any kind of positive expectancy.

the main reason i am changing my strategy slightly is on the basis that i believe i am using the wrong timeframes deemed suitable for both my style of trade and my chosen indicators.

i will outline my amended strategy in the next post and hope to run with it for at least 100 trades and see how we go!

 

[munchiedude]

Trading strategy (amended)

style: intraday trading
instruments traded: eurusd/ftse 100 index
timeframes used: H1 and T30 for general idea of day trend, T15 and T5 for entry/exit signals
risk/reward: 2:5 (always constant)
indicators used: MACD/STOCS

Pre-trade prep:
identify daily market trend(bullish/bearish, ranging/trending) using H1 and T30
identify strong sup/res levels and important round numbers
identify major economic news for the day and their times

Trade Setup:

identify Buy signal (on T15)
STOCS shows crossover in the region <=20(underbought) or >=80(overbought)
crossover has to be touching or piercing relative 20/80 lines, WILL NOT TRADE IF CROSS OVER OCCURS 20<X<80 (i.e. in the middle)

extra confirmation if MACD crosses midline 0 in direction of bias (showing possible trend reversal, dont be too rigid with target profits in this situation)

Fine tune entry with T5
entry triggered when T15 conditions satisfied.
entry timed to enter at bottom if current candle at moment of crossover

exit triggers
STOCS reverse and crosses back over
important: EXIT TRIGGER CAN OCCUR AT MIDDLE OF INDICATOR.
apply caution especially where MACD is in opposite direction to bias when placing trades.

rules:

WILL NOT MOVE STOPS
WILL NOT MOVE TARGETS IF SET
WILL NOT DOUBLE UP
WILL NOT TRADE IF NO BUY SIGNAL GENERATED
WILL NOT....thats all i can think of atm lol

this is mainly for my benefit but let me know if anything can be added that my lack of experience may have missed out

 

[rathcoole_exile]

After the slaughter and crazy volatility of recent weeks, this pair is taking a well earned breather.
But as you can see, it’s done nothing but creep along it’s weekly pivot point for the last 4 or 5 days.

Somethings gotta give, and probably very soon
(I don't follow Fundamentals at all, there’s probably some News pending which will affect this pair ?)

But News or no News, it would be a good idea to position oneself for a breakout from this tight consolidation,
Either outright directional, if you believe you can anticipate which way it will move
or with a bracket order to catch a move in either direction…

I don't think your Stochastics or MACD will help you much here, they will be far too late to signal a breakout
If I were a new trader I would just draw a line above and below this tight range and wait for one to be triggered, probably 77.00 and 76.50

 

[munchiedude]

After the slaughter and crazy volatility of recent weeks, this pair is taking a well earned breather.
But as you can see, it’s done nothing but creep along it’s weekly pivot point for the last 4 or 5 days.

Somethings gotta give, and probably very soon
(I don't follow Fundamentals at all, there’s probably some News pending which will affect this pair ?)

But News or no News, it would be a good idea to position oneself for a breakout from this tight consolidation,
Either outright directional, if you believe you can anticipate which way it will move
or with a bracket order to catch a move in either direction…

I don't think your Stochastics or MACD will help you much here, they will be far too late to signal a breakout
If I were a new trader I would just draw a line above and below this tight range and wait for one to be triggered, probably 77.00 and 76.50

hi rathbone, thanks for your input.

one thing, on your charts and your post you refer to the usdjpy pair and the only things im trading as a newbie is the eurusd and ftse100. is it a mis read or is there a relationship between the usdjpy pair that will afect my strategy on the eurusd/ftse100?

 

[rathcoole_exile]

nope, just a suggestion for you to look at, of a good trade set-up where MACD etc are fkkkk all help to you

 

[munchiedude]

nope, just a suggestion for you to look at, of a good trade set-up where MACD etc are fkkkk all help to you

u dont sleep much do you? lol

yeah, thanks for pointing it out, in a range bound mkt i dont intend to use macd/stocs especially if the range is tight. im not currently trading range bound mkts but i do agree with your strategy...i've used something similar when trading news before.

but here with this approach its predominantly trending mkts. i have a different setup im exploring for range bound situations, and it doesnt involve the macd nor stoxs!

 

[rathcoole_exile]

ok, but don't confuse this with a range bound market.

a range bound market is a channel wide enough that you can play ping-pong off the highs and lows

what's happening on this pair isn't a range, its a very tight consolidation winding up for an explosive move - either a new trend, or the resumption of the previous trend

 

[munchiedude]

trade 1

BIAS sell
ENTRY 1.4382
S/L PIPS 10
target: 1.4357

 

[munchiedude]

stopped out -10pips

 

[munchiedude]

rising channel on t5 changes my bias to long only until further notice.

 

[munchiedude]

slight deviation to strategy: trading breakout above key sup level 1.4417.

entry 1.4418
s/l: 1.4408
t/p: 1.4443
+25pips

 

[munchiedude]

trade 3

possible stocs crossover

pending order
sell
entry 1.4423
s/l: 1.4433 (key res level)
t/p
1.4398

 

[munchiedude]

trade 3 active
confirmed crossover on t5 to sell side.
exercising caution due to macdd still positive.
also stox dipping below 80

 

[munchiedude]

stopped out. -10pips

 

[rathcoole_exile]

if you research Jake Bernstein, especially the Compleat Day Trader, you will find one of the greatest ever exponents and most successful traders of Stochastic.

But his "Stochastic Pop" method, is 180' COMPLETELY THE OPPOSITE of the way that you and 10,000s of thousands of other new traders are taught to use it !!!!
Exactly, completely, the opposite way. He is taking Buy signals when you're taking your Sell signals.

So what does that tell you about it's efficacy within your own method ?????

I know you've been advised to make your own mistakes and learn from experience, but ferfuxake, please drop all of this shyte now. It's useless rubbish mate that will not help you in any way go on to be a better trader

 

[munchiedude]

if you research Jake Bernstein, especially the Compleat Day Trader, you will find one of the greatest ever exponents and most successful traders of Stochastic.

But his "Stochastic Pop" method, is 180' COMPLETELY THE OPPOSITE of the way that you and 10,000s of thousands of other new traders are taught to use it !!!!
Exactly, completely, the opposite way. He is taking Buy signals when you're taking your Sell signals.

So what does that tell you about it's efficacy within your own method ?????

I know you've been advised to make your own mistakes and learn from experience, but ferfuxake, please drop all of this shyte now. It's useless rubbish mate that will not help you in any way go on to be a better trader

thanks for your reply rathbone, altho im unsure why my noobie trading style agitates you so much lol.

whether its useless rubbish or not is upto me to determine and not for you to comment or judge on, your comment in this particular instance is neither welcome nor constructive.
as i said before, my method is not really thought through, its merely a simple trial and error "experiment" if you will keeping things simple and basic, and through trading it, learn about discipline, sticking to trading plan, what seemingly works, what doesnt etc and adding or altering the strategy until both my psychological and execution as a possible trader builds more experience.

i thank you for your recommendation of the book, is it complete day trader or compleat day trader?

whilst i value everyone's comment, if i am going down a totally stupid route of course it is correct to point out what a poor strategy it is, however the delivery of the message in your post lacks both maturity and is frankly, downright rude. what message do you give to any budding noobie thinking about posting his strategy and trades in a journal entry on here? off putting i would expect.

obviously it is an isolated case with you rathbone as i've found many, particularly rarschach to be very helpful in pointing me in the right direction without using crude words like shyte and rubbish.

in case you havent realised, it is my journal so "dropping my shyte" is not an option. in your own words, if you are not happy with what you read, maybe consider dropping your shyte and "helping" others elsewhere.

 

[rathcoole_exile]

tis upto me to determine and not for you to comment or judge on, your comment in this particular instance is neither welcome nor constructive.

your first post was "if there are any improvements/clarification that needs to be had above, please do let me know as i welcome constructive input and criticism as i fully appreciate that my trading "strategy" is a bit loose but i hoping experience and feedback could improve it!"

I've been trying to help you.
fkkk knows why, maybe I took pity on you.
But you seem determined to keep your head in the sand,
so fffk you, I'll happily stay the other side of your trades taking your wasted money

 

[timsk]

I know you've been advised to make your own mistakes and learn from experience, but ferfuxake, please drop all of this shyte now. It's useless rubbish mate that will not help you in any way go on to be a better trader

Hi Munchie,
I'm inclined to agree with r_e when it comes to Macd and sarcastics. Instead, use RSI - it's much better!


On a serious note, the anti-indicator lobby are very vociferous on these boards and, to be fair to them, many of the points they make are very valid. The problem you face is that until you reach the conclusion yourself that such indicators are - in r_e's words: "useless rubbish [mate] that will not help you in any way go on to be a better trader", you'll always have that nagging doubt that maybe there's something in them that really will be helpful to you. When you're starting out, being told not to use them is akin to telling a young boy not to play with a water pistol.

Whilst I'm being devil's advocate, I may as well point out that there are some people who use them daily and do very well with them. So, they are not completely without value. For example, in the days I traded U.S. equities, I used ATR to help me calculate my position size. To be honest, I wasn't a very good stocks trader and I didn't make any money. However, there's one thing of which I'm very certain: my use of ATR as a money management tool ensured that I traded the right size with the right stop and, without it, I would almost certainly have blown up my account. I didn't - and I'm still in the game and I have ATR to thank for that.

So, what's a new trader to do? I think you've got 2 choices. You either get them out of your system early on, or you resolve to study how the markets function without them and then add them lat a later date to see if they are of any use to you. The key thing is to not let the indicator cloud your understanding and interpretation of the market. And if you're going to make trading decisions based on indicators - you must know when they're likely to mislead you so you can ignore their signals. Ultimately, it's quite likely that you'll arrive at the same conclusion as r_e, but I stick by my assertion that you have to come to it on your own and in your own time.
Tim.