Smacking the ER2

Cheers Fred.

My edge limits me to the US indices....but I know a couple of fans of Eurofx for sure.

Thanks

 

My new freelance contract means I’m going to miss the morning sessions between Tuesdays and Thursdays (very painful but the money is just too good to turn down). So 2:30 UK time was quite frustrating today wondering how things opened. But I’m in for the long haul so I think this a necessary short term compromise……plus I need to get better at the afternoon sessions.

More lessons today (with S5) in probabilities and wanting absolute precision before entry…..and a gap in entry rules in my trading plan (S7).

The main positive from today is this is the kind of day when the signals really shine – S1, S5 and S7 alone were a weeks target for me if played half decently.

S1(S) – nice signal - failed to take – at work
S2(S) – failed to take – at work
S3(L) – failed to take – at work

S4 (L) - entry 658.4 (17:40) – stopped at 658 – moved 0.7 into profit – I tightened SL from 1pt to 0.4pt – the price limped back to stop.

S5(L) – great signal – in the same series as S3 & S4 - failed to take – because I wanted perfection – it was 0.2pts out of alignment with the prior low so I didn’t take it – even with the 0.2pt differential it was still a 70-75% solid signal.

S6(S) – so after being very picky with S5 - I then jump straight into a counter trend PB – entry 661.30 (19:16) and close at 660.40 when I get S7 signal formed.

S7(L) – a strong continuation signal confirmed by two indicators – but the 5min candle had just started printing at 19:25 so I left it – I could have probably got in at around 660.60 - it then went up painfully high. At least I followed my trading plan rules.

I think the rule on waiting for the 5min candle to print is clearly mandatory for a reversal signal, however for a continuation signal I thinking an entry with trend during the candle print is acceptable. Any views on this? I will update my trading plan because it just says wait for 5min candle to print – with no clarification on signal type.

Felt a bit emotionally steamrollered after S7 - so I left the last hour because I wasn’t thinking clearly. Therefore missed the S8 signal off the two resistance levels.

Entries – two ok ones – two real biggies missed for interesting reasons – no non-signals
Exits – one good one – one exit on reduced stop – no stop outs
Points today +0.5pts (not including comms)

Onwards and upwards……….as S5 & S7 should have been dohhhhh !!

 

Well yesterday is a distant memory – one nice play….and another nice day for the signals (with the two main reversals S2 and S4)

S1(L) – at work
S2(S) – at work
S3(S) – at work

S4 (L) – nice entry 656.6 (19:10) – closed 660.2 – it moved pretty quickly up through three resistance levels and I exited on a signal too.

S5(S) – failed to take

Entries – only one and a good one – no non-signals
Exits – one good one – no stop outs
Points today +3.6pts (not including comms)

Onwards and upwards……….

 

BTW there will be no post tomorrow because I have to take some clients out for a meal......but Friday I'm back for the whole day. Cheers

 

How have you been feeling about your trading, btw?

Also, how can you tell the difference between a buy and sell signal on your charts? And what does the "c" mean?

- The New Guy

Edit: nvm about the long and short signals, i see them in your post now....

 

TNG,

How do I feel about my trading now ?

I feel superconfident about the edge and I'm finding it a lot easily on a 5min view (with a 15min view for trend & overbought/oversold etc) picking it out.

It's the emotional control that's going to need a lot of work - I was shellshocked after my performance yesterday with S5 & particularly S7 - then today europhic after taking 3.6pts in one trade. So a bit of an emotional rollercoaster.....hopefully I will grind my way through this with time.

But I have the desire to make this my new life because I want it so bad. It's got past the stage of the money potential, its just the challenge and the independence I really crave.

Missing the mornings is a short term compromise - which should help build up the trading capital too.

FYI - The C is where I closed the trade and E where I entered.

Cheers

 

Well that's good! I'm following this thread with interest, and pulling for you. I just had a look at yesterday's chart, and I think you should consider it a smashing success. If following your trading rules is the goal for now, then you obviously succeeded, and I think the fact that they were big moves should only indicate to you the strength of your conviction in sticking to your rules, and strenghten your belief in your system.... both seem to be pretty good things to me!

Thanks for the clarification.

Keep up the good work!

-The New Guy

 

Thanks TNG.....

Doing this journal has helped me:
1) in the excellent contribution from most posters,
2) the pointers to get me to move up a few timeframes,
3) getting me to really get more specific on my entry and exit rules
4) the overall cathartic experience of describing the head stuff I'm trying to work on during my trading day.

Cheers J

 

I meant to mention it earlier but I would recommend any new trader check out the thread "Acceptable risk reward ratio" and particularly candletrader's posts.

When I plugged in my trade results from the first few months I realised I had to change something quickly....it was a definite oh my god moment ......because I was on a path to certain statistical failure.

This is a critical part of my trade plan now. Worth a look.

Cheers

 

After missing the great rally day yesterday I thought we were in for Whipsaw City today – well it wasn’t quite that bad …..a few interesting plays

I had a hangover which didn’t quite help the focus (even after 2 Red Bulls & 3 coffees).

S1 (S) – nice entry 666 (14:51) – closed 665.3 – in the same 5 min bar when the price didn’t break down as I expected and one of my indicators bounced back to show strength – it was also oversold & testing 665.60 – great exit in hindsight

S2 (L) – failed to take – poor concentration

Non-signal - well it’s a signal on my research list but not in my trading plan. But I was also using oil price as the entry trigger. Entry 669.8 (15:50)– I was really cross I entered on a non-signal so I exited 2 minutes later – closed 670.2 - the fact that it turned into a subsequent 2 pt move doesn’t bother me – but I will put this “non-signal” on the top of my research list now !!

S3 (S) – nice entry 668.3 (16:35) – this looked like a good reversal signal to me – so I was determined to hold it through the first PB and assess it. I couldn’t easily watch the screen as it when -0.5 against. I even walked around the house and did some deep breathing to keep calm and prevent an early exit. Once price started dropping I was better. Once it got to 1pt+ I moved the profit target to 665.60 but a potential exit signal was looming. I then looked at the QM/YM charts and could see the move up and thru $66. I wasn’t sure that it was going to hold and decided to exit at 1.4pts. With this signal I know it is a usually a good sign of weakness and a good hold through the first PB – however, as soon as I pulled up the QM/YM chart my signal turned in my mind to a pure oil price play – closed at 666.9. In hindsight a good exit in terms of points, but I’m not sure for the right reasons!!

S4 (L) – failed to take – 17:15 bar too aggressive & still thinking about S3

S5 (S) – failed to take – at lunch

S6 (L) – failed to take – at lunch

Non-signal – fatigue setting in now – my favourite trick of entering part way through a 5 min candle printing – looked like a continuation signal – then disappeared by final print. At least I got out b/e. Entry 670.9 (19:42) exited 3 minutes later for 670.9

So I stopped at 7:50pm whilst I was still ahead

Entries – two good ones – two non-signals
Exits – two good ones – two non-signal exits - no stop outs
Points today +1.7pts (not including comms)

Onwards and upwards……….