Proprietary goes FX

[AssetVulture]

Greetings and hello,

A few years ago i´ve been working for a proprietary firm. The main reason indeed was to get my hands on more capital to capitalize my own portfolios much faster on the same / lower risk than i would do on my own.

Proprietary trading indeed differs from what we are used to trade in currency markets, due to certain data actually get a meaning.

Order Books. Volume Data / Centralized Markets (To some extend) etc.

However, in this journal i simply want to demonstrate the "differences" of proprietary trading with certain data and without, not related to any instrument / asset.

The data used in a proprietary firm are indeed valuable and very useful, but do you really need them?

Assuming that someone with the ability to actually cause price to move does follow something... and that is liquidity!?

Thinking about who is providing most of the liquidity to actually fill those high volume orders is therefore a very common guess.

Do we need volume and order books to know? Certainly not, but instead knowing the methodology of those providers. Liquidity in itself follows a pattern in some sort of way. High volume order react to liquidity and more or less seeking out for it, which expresses itself in a visual feedback on a chart. Wether its a candlestick chart, Volume profiles, Bar Charts, Kagis, PTF´s, Market Profiles, Frequency etc.

It really doesnt matter, because its the same thing, just expressed visually different.


This journal is not meant to be to really teach you something, but to show its indeed possible with great accuracy in any sort of market. If you learn something from my daily performance and explanations of why i took a particular trade, its great. Sometimes it just takes one little piece to complete the puzzle and if you can find it here, awesome!

Also... I am not going to teach anyone how to trade the way i do, wether in my journal or anywhere else, since the time and effort is very likely not a profitable investment for me - Just to state that out upfront.



Dont give up, but dont be stupid and blind. Trading can be something really joyfull, but with the wrong approach of how to and where, it might become really harmful!

Enjoy!

 

[AssetVulture]

17.09.18 - eur / usd

Then lets start with a trade i´ve taken just yesterday in the EUR/USD



Current state before entry. Further notes are drawn on the chart...

Entry Point:

Approaching target:

Outcome:

 

[AssetVulture]

18.09.18 usd / jpy

My today´s trade is executed in the USD / JPY

Price has already moved quite alot, but i didnt took profit even tho we have reached a potential RR of 5:1 at max distance. However, gonna monitor this particular trade further. Currently price is getting back up. Should price move further north, i m gonna put my SL breakeven or simply close it just before. Price will tell...

Later this day with the result i am going to make further notes on why and what... Stay tuned!

Stopped out @BE.

Now... Was it a good stop? Well, maybe / maybe not. Was it a great idea not to take profit at 5:1 at max? Well, maybe / maybe not, but i had my expectation based on my analysis.

My initial idea of where price is likely to turn was right, but my analysis of the profit target maybe not.

Essential is to manage your risk accordingly. I had my expectation as target, i had my expectation of risk. Either way, one gets hit.

No further entries, not giving more room to breath and nothing else.

Price might turn at Base Top, but i dont really want to figure that out. If someone in the market wanted to lower price straight, he would have done that without doubts and so the deviation from my plan tells me, someone else also deviates from his plan.

Anyhow - No win, no loss, but still a great trade!


There´s always a next time

So here is a little hint on where i looked for my trade in the bigger scheme and where i looked out for entries.