July 26th 2007
10:03.
I am discontinuing my blog.
Firstly, I am getting over the idea that I can develop a fantastical novel concept all by myself. I simply accept the best ideas are already out there.
Its an ego thing. I am mostly over it.
Also, dont see the point of posting trades when they are generated by someone elses system.
I am finding the Cornflower settings, of EMA8, 12, 24 workable. (I have dispensed with the 72). I use them on the 30-mins and 60-mins.
(Cornflower method, as espoused by Lever70 on ForexFactory)
Bagovino (Forex Factory) EMA 5, 12 are fairly ok, but only in a trending market.
But, in a trending market, just about anything works.
I like the use of RSI-21 as a rudder, to provide stability in an otherwise choppy market.
(I like it, becasue if the EMAa are tangling, RSI can sometimes provide another element of direction)
However, the Cornflower EMA 8, 12 are very similar to Bagovino, are are interchangeable.
I think Cornflower is a better, fuller variation of Bagovino.
The extra EMA-24 also acts as a balance when the 8/12 are entangling.
I have added boll-bands, (20,2) more of a comfort zone.
I like the Cornflower because it actually waits for price to pullback to the "zone" created by the 8/12, so even though the 8/12 are entangling, the 24 provides the direction.
I have kept the RSI from Bagovino as confirmation.
observations: I still keep my stochastics slingshots, but I am finding the price entering the 8/12 zone just as good. this has to do with the way the stochastic indicators are constructed. unless there are about 3 or 4 bars forming a congestion, the slingshot gives too late a signal. I prefer to jump in when price retreats to 8/12. I feel, and can confirm from trading, that I get in at better prices more often.
There are occasional instances when price spikes through 8/12 and carries on, but these instances will happen, and I am still better off taking the anticipation.
I am noting Splitlinks idea of having tight stop-losses, and taking a couple of hits on tight-stops may be better than having broader stops. I like it, and make mental notes.
I have removed ADX. I have learnt to do without it.
Also, there was some mention on Bagovino of using RSI-5 as entry signals with the trend. I note RSI-5, but use it much as Gettysburg does, as pullback signals. (but on 30-mins) ie; in a downtrend, I will take a short when RSI-5 hits 70, and vice-versa.
Another thing is: if the EMAs are tangling, I may switch timeframes where the EMAs do have separation, as that time-frame may provide the trend.
I visually look for where price is on one-side of the EMAs, showing trend, rather than in the middle of the EMAs, showing congestion.
I am still looking to trade indicator-less, and think I am improving, thanks to "bubbles" thread on forex-tsd. (no comment on BBmacs doc on T2W. He uses more indicators than I do!!)
My biggest change in trading is taking multiple positions.I no longer worry about getting the "best" price, I just take each signal, and accumulate aggregate positions.
Testing: I dont test anymore. I am finding it rather boring trying to find more systems, and there is a good reason for it. Since I am already committed to being a pullback player, I tend to gravitate to looking for better pullback methods. But it is the concept itself I prefer, so all I am looking for are variations on the theme. DOH!!
It only makes sense if I decided I wanted to trade breakouts that I would truly be changing tack. So, perhaps I should stop looking further, and just get on with it.
(there are a hell of a lot of "I"s in this post!)
Finally, I think I understand my frustration with trading.
I think realists just see the world as it is, and jump in and deal with all the good and bad, and roll with the punches.
I, and many others, may be perfectionsists and idealists, and are offended by the messy nature of the markets, and look for aesthetics, beauty in the untidy action. I think thats why many are attracted to the esoteric, mystical, mathematical perfection, which may actually not exist. Losses are an offence against the musical beauty.
Well, markets are messy, and its OK to be messy.
I dont have to be perfect. As long as I brush my teeth and take a shower once a day, and chew with my mouth closed, I can pass for bearable. Doesnt matter if I get a few things wrong now and then. Same with my trading.
I am not brilliant, but I actually make money. Losses still hurt.
But I follow principles which keep me in at low-risk.
Posting further trades is rather pointless. I may at some point write up something as a PDF.
Have a good day.
