The Wallace Trading Method

Discussion in 'Journals' started by Wallace, Apr 30, 2012.

  1. amended CL cfd profit ~ $20.54

    'may you trade financial instruments full of price spikes and swings'

    for Thursday May 23/13 ~ 2:29pm pst

    Claims: up a bit more ?

    no changes, except praying harder for the price of silver to fall, although maybe I'd
    better write an update

    the EU, French and Germans are going to be Flashing from 3-4am est. think both
    German PMI and the EU's numbers will be smaller than the forecasts
    Currencies: all have closed thru their respective fibo levels so I expect their trends
    to continue
    the euro stopped on various lines, but the Weekly's gone very soft and I expect it to
    close the week down. Friday has the final q/q German gdp, should be 0.1% , but . . .
    there's a line at 1.2814 but the 'watch-out !' is around 1.2795 since there's D and W
    mls that broken thru means a Lot of downside. upside, 1.2875 ?

    GC: gold's completed the reversal bounce retracement and on the way down again
    SI: as above - phew !

    CL: crude hit but didn't penetrate the various resistance levels, and declined. I'll say
    the first downside break would be 93.89 , and then around 91.90 if it's to go lower
    but it could bounce up again from the higher level, or if it goes that low, the lower, so
    the Sell was from the resistance top
    NG: is on its way up again, it's been a Buy, see if it breaks and closes above 4.43

    ES NQ YM : can't believe it ! I look away for a minute and they all start dropping
    will stay with the Buys since I consider the up trend's still my friend, except today
    a set-up for tomorrow ?
     
    #151     May 22, 2013
  2. early close for Memorial Day ? happy holiday

    closed the SI trade and dropped it from the portfolio, will continue with gold trading

    for Friday May 24/13 ~ 3:25pm pst

    there may be more downside again tomorrow but overall I believe the trends remain
    the same for currencies and indexes

    the euro specifically looks as tho it's completed a reversal formation, and if so
    should then begin to decline

    CL could continue to rally since both the low and close are similar to those of last
    week's. the price could also decline again and make a close around the 92 area
    then begin a rally next week
    NG still a Buy
     
    #152     May 23, 2013
  3. thought the markets were closed, don't seem to have missed much

    Return On Investment to the Friday Close May 24/13
    . . . . . . . . . profit/loss . . . margin . . . . . ROI
    1 audusd . . $134.67 . . . . $325.57 . . . .41.36 % . . . 10 days
    2 eurusd . . .$114.70 . . . . $428.70 . . . .26.75 % . . . 3 weeks
    3 gbpusd . . $46.67 . . . . . $508.22 . . . . 9.18 % . . . .10 days
    4 nzdusd . . $111.00 . . . . $270.31 . . . .41.06 % . . . 10 days
    5 usdcad . . $84.79 . . . . . $340.47 . . . .24.93 % . . . 10 days
    6 usdchf . - ($27.74) . . . . $322.13 . . . . . . . . . . . . .10 days
    7 usdjpy . . .$136.11 . . . . $340.94 . . . .39.92 % . . . 10 days
    6 pairs . . . .$627.94 . . . . $2,214.21 . . 28.35 % . . . .3 weeks
    7 pairs . . . .$600.24 . . . . $2,536.34 . . 23.66 % . . . .3 weeks
    gold . . . . . . $936.70 . . . $3,251.00 . . 28.81 % . . . . 4 weeks
    7 fx + gold .$1,536.94 . . .$5,787.34 . . 26.55 % . . . . 4 weeks
    3 index . .- ($1390.68) . . $8,800.00 . . doomed ? . . . 5 days

    for Tuesday May 28/13 ~ 3:20pm pst

    Currencies: s t a r t i n g to get back into their trends
    Gold: a bit concerned if the formation is still a correction or if the price'll break 1488
    a Buy at the Low is still on
    CL: too tight an up and down variation for me to trade, temporarily can go either way
    NG: need to see it break 4.44 for more upside, but stll a Buy
    Indexes: Dow appears to have the bit between its teeth, needs to close above 1535
    to see if it runs, then the others with it
     
    #153     May 27, 2013
  4. for Tuesday May 28/13 ~ 8:53am pst

    closed ES NQ YM
    4H formation looks like a reversal or at least may continue to decline as a correction
    no Sells entered
     
    #154     May 28, 2013
  5. will be dropping the CL, NG, ES and NQ from the portfolio, but will from time to time
    update the CL and NG
    basically the ES and NQ follow the YM so a YM update applies to the ES and NQ

    for Wednesday May 29/13 ~ 2:49pm pst

    Currencies: Sell on
    Gold: looking like the Sell's resuming
    CL: probably down again
    NG: well, , , it could go back up again, but . . .
    Indexes: if a correction, could see the prices drop to last Thursday's low, but a smaller
    drop's also possible, maybe lasts until Friday ?
     
    #155     May 28, 2013
  6. the euro rally was a big surprise to me, I was thinking down overnight, and the much
    larger than expected increase in German claims didn't seem to matter; Sell set-up ?

    for Thursday May 30/13 ~ 3:35pm pst

    Currencies: maintaining current positions, only one I feel threatened about is the euro
    aud: at the breakdown area, will it break ?
    eur: ??? 4H formation looks like an H&S about to start down; and it also looks like
    it's completed the correction prior to a new leg up and break thru of the chasm line
    a re-test of the highs ?
    gbp: looks like it formed a base 4H, longer tfs it's still at the breakdown area
    nzd: looks like it's rolled over and heading down; in breakdown area
    cad: in break up area
    chf: in break up area
    jpy: I'd expected the jpy to be at 105 by now, also in breakup area

    Gold: maintaining position but watching it and could close it if it breaks 1414

    Indexes: looks like one more leg down, previous lows area ? US market for bottom ?
     
    #156     May 29, 2013
  7. for Thursday May 30/13 ~ 6:42am pst

    closed all fx pairs and gold trades
    Sell YM 15276
     
    #157     May 30, 2013
  8. all trades closed, ROI to Thursday Close May 30/13
    . . . . . . . . . profit/loss . . . margin . . . . . ROI
    1 audusd . . $199.50 . . . .$325.57 . . . . 61.27 % . . . . 15 days
    2 eurusd . . .$148.60 . . . .$428.70 . . . . 34.66 % . . . . 4 weeks
    3 gbpusd . . $67.00 . . . . $508.22 . . . . 13.18 % . . . . 15 days
    4 nzdusd . . $90.80 . . . . $270.31 . . . . .33.59 % . . . .15 days
    5 usdcad . . $156.34 . . . $340.47 . . . . .45.91 % . . . .15 days
    6 usdchf . - ($31.51) . . . $322.13 . . . . . . . . . . . . . .15 days
    7 usdjpy . . .$188.48 . . . .$340.94 . . . . 55.28 % . . . 15 days
    6 pairs . . . .$850.72 . . . .$2,214.21 . . .38.42 % . . . . 5 weeks
    7 pairs . . . .$819.21 . . . $2,536.34 . . . 32.29 % . . . . 5 weeks
    gold . . . . . .$770.33 . . . $3,251.00 . . . 23.69 % . . . .5 weeks
    7 fx + gold .$1,589.54 . . $5,787.34 . . . 27.46 % . . . . 5 weeks
    ym index . . $771.88 . . . $2,750.00 . . . 28.06 % . . . . 9 days
    ALL . . . . . .$2,361.42 . . $8,537.34 . . . 27.65 % . . . .5 weeks
    the roi shows a profit, but it doesn't show how terrible my trade management was
    during the period, nor how much potential profit was missed
    another matter is if it's worth trading the gold and index futures given how much
    margin's required to do so:
    gold + ym margin v 7 fx pairs margin: $6001 v $2536 ~ profit: $1544 v $819
    and then there's trading a full lot or futures contract where the margin amount is in
    between the two:
    audusd $3255 ~ 6E $3300 and profits $1995 ~ $1486 and not much more to trade
    2 lots or futures contracts
    mind you, when you live where you can get 500:1 leverage on fx pairs . . .

    for Friday May 31/13 ~ 4:00pm pst

    Currencies: one thing I overlooked yesterday was that 'break down - up' areas are
    also 'support - resistance' areas; realizing that later yesterday evening resulted in
    me closing all the trades last night
    something else is what looks like an H&S in both the 4H and D DX charts. whether
    this is a signal for a trend change will have to wait till my next update
    aud: bounced off a fibo, holding support and rising
    eur: certainly looks like it'll get thru the chasm line, and then how high ?
    gbp: have to say it's based around a fibo - support, so your Buy's still on
    nzd: similar to gbp
    cad: moving between 2 fibo levels but still looks like a bull formation
    chf: well, it's heading down
    jpy: support ? around 99.722
    gold: retraced 50% of its last decline, could stop here, could also continue to rise
    back up to the 1487 area, then a possibility of the April-May formation being a
    correction indicative of more downside
    ym: another great entry, Sell YM 15276 , got carried away with closing all the trades
    just to try and even things up - 'famous last $s' - Sell 2 ES 1656.50
     
    #158     May 30, 2013
  9. for Friday May 31/13 ~ 6:35am pst

    closed: ES 1645.25 ~ YM 15241 . . . now a Buy ?
     
    #159     May 31, 2013
  10. may trade cl, ng as and when; trading the ES - higher volume and lower day margin
    any additional trades entered will be posted in the next update

    for Monday June 3/13 ~ 2:44pm pst

    lots of price moving announcements thru the week culminating in the NFP on Friday

    Currencies: the H&Ss I referred to on the DX disappear in the M, and the larger tf
    and its formation appears as a retracement top; this means the $ will decline, could
    go as low as 79 , but might stop at 80 . this would of course be a Large decline and
    take several months to complete - September-October
    IF this scenario is correct, it would then become the completion of a correction that
    would see the next large $ rally and breakout above the 90 level
    but a large change in the direction of the other currencies, IF, my analysis is correct

    aud: Buy 0.96186
    eur: some downside, then a Buy
    gbp: Buy 1.52030
    nzd: Buy 079736
    cad: still looking like it'll break previous highs, Buy
    chf: downside, Sell
    jpy: did the yen top ? reversal formation on the D May 17-22 , a rally here would be a
    correction completing a retracement correction after which there'll be more down
    es: expecting more downside possibly lasting the whole week
    xauusd: 0.10 Sell 1387.81
    ..................
    cl: D looks like it could drop to the 90 area, but the W looks like it's ready to rally
    ng: see if it continues down
     
    #160     Jun 2, 2013