Trading Journal

[Masterful]

The aim of this Journal is to ensure discipline in a highly discretionary trading strategy. The hardest part of this strategy is often the exit. It has made money historically (for a few years) but involves wide swings due to poor risk management this is the part I need to iron out. It is a strategy which generally holds positions for between a few hours and several days.

In order to encourage discipline I aim to post trades and periodically back this up with screen shots of trade history/account balance.

Risk Management:

Max Risk Per Trade - 6%
Max Risk Per Day - 12%

Strategy Outline:

Entries: Based on many factors using discretion - reasons to be given per trade.

Exits: I will hold the trade until one of the following conditions are met:
- A target price is reached
- A stop loss amount is hit
- The rationale for entering the trade is no longer there
- Conditions have changed and perception of the market is no longer in the direction of the trade.

Stops: Based on technical levels or max risk, using automated stops where appropriate.

Starting Balance:

 

[Masterful]

Long EURCHF at 1.2358 - £5pp

A low R multiple trade with high win/lose ratio

Based on behaviour of EURCHF overnight tendency to oscillate, looking for small bounce, limit order set overnight for 20pips. Trade is in sync with my prevailing bullish sentiment towards the pair and if it was not the overnight session I would consider running with a higher profit target.

 

[MajorDutch]

The aim of this Journal is to ensure discipline in a highly discretionary trading strategy. The hardest part of this strategy is often the exit. It has made money historically (for a few years) but involves wide swings due to poor risk management this is the part I need to iron out. It is a strategy which generally holds positions for between a few hours and several days.

In order to encourage discipline I aim to post trades and periodically back this up with screen shots of trade history/account balance.

Risk Management:

Max Risk Per Trade - 6%
Max Risk Per Day - 12%

Strategy Outline:

Entries: Based on many factors using discretion - reasons to be given per trade.

Exits: I will hold the trade until one of the following conditions are met:
- A target price is reached
- A stop loss amount is hit
- The rationale for entering the trade is no longer there
- Conditions have changed and perception of the market is no longer in the direction of the trade.

Stops: Based on technical levels or max risk, using automated stops where appropriate.

Starting Balance:

12% maximum risk per day is very high. 3 very bad days and you will have damaged your account probably beyond repair. 2% per trade & 6% max exposure would be more sensible. just my 2c

 

[Masterful]

Thanks for your comment, i know this is higher than normal, and risky. For now I wish to keep it at this level.... indeed this at my own peril!

 

[MajorDutch]

Do you trade pure PA? from what you have written I am guessing you are taking trades off an hourly t/f? are you fund/tech?

 

[Masterful]

Sh5467, I am trading pure PA, have traded 1 yr at a prop firm and now work for a fund manager. Been trading PA for many years before, with stints of full-time trading between studies/jobs.

EURCHF hit limit this morning for a small profit: +100

All trade history/balances will be posted periodically to confirm trades.

 

[Masterful]

Sh5467, my trades are based first on fundamentals and then use technicals to pinpoint entry/exit. I generally look at multiple timeframes but refer back to a 5 min chart.

 

[traderman1]

Sh5467, I am trading pure PA, have traded 1 yr at a prop firm and now work for a fund manager. Been trading PA for many years before, with stints of full-time trading between studies/jobs.

EURCHF hit limit this morning for a small profit: +100

All trade history/balances will be posted periodically to confirm trades.

We are all assuming that you will post your trades here IN ADVANCE.

If you are going to post your trades AFTER the event, then you will be wasting your time. You will have NO credibility.

Everyone will, quite rightly, think that you are a plonker. :cheesy:

 

[Masterful]

traderman1, Erm... All posted well in advance who's the plonker!?

 

[Masterful]

I managed to post the first trade live with my planned exit in advance, however I won't be able to post whilst at work. So I will simply post these trades in the evening or at weekends. I will mostly post evening trades live.

This meets my needs for this journal.

 

[Masterful]

Trade 2:
US Sugar 11 Mar
Long @ 24.86 £5pp
Risk was on at the time I took this trade and sugar hadn’t had as much of a reaction as other markets so I bought. Right now I’m bullish sugar under 25 cents and there was a decent support level around 24.40 to limit risk.
Exit: I got out just ahead of non-farm payrolls as I didn’t like the risk, exit was 25.26
Profit= +£200

Trade 3:
GBPUSD
Short @1.5525 £3pp
Looking for a pullback given underlying picture of QE and ratings downgrades on banks, I knew cable was oversold but thought the rally was overdone.


Exit: Embarrassingly I got out of my sugar trade first then, went to exit this one at what I thought was 2 minutes before payrolls but my computer time was incorrect and this shot up against me I then jammed the buy button getting out right at the top of a spike only to see it come right the way back...stupid mistake.
Loss= -£201

 

[Masterful]

Long EURUSD @ 1.3405 £5pp

I think EUR USD could drift higher in the absence of any bad news. However I don't expect any big moves overnight, more likely we get some sideways movement so I've put a small target of 50pips limit sell at 1.3455. I may extend the profit target in the morning.

 

[Masterful]

Profit target hit overnight for +£250

 

[Masterful]

Trade 5 - opened position on dow at £1pp, quickly closed as this was a mistake +£3

Trade 6 -
Short dow @ 11390 £5pp

Went Short major technical resistance at 11390, I was expecting a quiet session after Europe's close, and given the long run up I expected a retrace at least. The resistance line provided a good risk reward entry. I set a limit profit target of 50 pips and stop of 50 pips providing enough room just in case we tried to head fake the resistance.

Trade hit limit order for +£250

Interestingly we smashed through resistance late in the session, technically this looks very bullish and given the background of Merkozy waving the wand in Europe it's hard not to see the bull case here. However in a quiet market with a breakout at the end of the session it will be interesting to see if we hold the retest.

 

[Masterful]

 

[Masterful]

H&S on 5 min chart, I'm Short

 

[Masterful]

Still short £5pp with a poor entry at 11365, in the red with stop at 11485. So far we have held resistance turned support on the daily chart. This is around the 11360 level, few doubts starting to creep up surrounding euro plans but I'm not sure it's enough to halt this Market right now. I do think we're overdue a retrace and I won't be convinced by this breakout unless we hold above it today.

 

[Masterful]

Still short £5pp with a poor entry at 11365, in the red with stop at 11485. So far we have held resistance turned support on the daily chart. This is around the 11360 level, few doubts starting to creep up surrounding euro plans but I'm not sure it's enough to halt this Market right now. I do think we're overdue a retrace and I won't be convinced by this breakout unless we hold above it today.

Closed out at 11376 for -£55, not sure which way this is going now but we have held above support and I dont fancy holding this overnight.

 

[Masterful]

This trading journal is now discontinued until further notice! Due to work commitments I've had to stop trading for now. I hope at some point in the future I will be in a position to continue with this as it looked promising!