3/8: Review of K7-specific blog posts

After five and a half weeks off from the financial markets (and trying to learn French in Paris instead!), what better time is there to quickly review my K7-specific blog posts to ensure that I take on board the key observations and findings I have made in the past few months so that I can continue on my road to becoming a profitable trader.

Lesson 1: Only take good setups and enter at good levels – entering bad setups and/or at bad levels generally cost me money – further this will allow me to enter on a positive feedback loop – leading to better emotional feelings and increased sharpness.

proficient trader stressed trader

Lesson 2: Taking the US-based trading results aside (losing 15R in a period of 2-3 weeks) it looks as if I am a scratch trader using the K7 strategy.  This in itself is already okay, as I am trading well enough to fight off the transaction costs.  I am only needing a bit more of an improvement to go from scratch into the black.

K7 results (excl US trades)

Lesson 3: Be very disciplined in using the EMA’s in trade selection and picking entry levels (have made some adjustments to my strategy checklist for this)

Lesson 4: Answer this question: What is the true cost in waiting for retracement to the EMA before entering?

Lesson 5: Stop trading non-standard instruments on an occasional basis – my performance record on such trades has been terrible.  Instruments being traded can change from time to time e.g. when one specific instrument starts to trend.  However all in all I tend to be better if trading the same instrument over and over:

  • 9 trades on NZDUSD, GBPNZD, FTSE, US30, GBPJPY and CHFJPY cost me 3.77R
  • 273 trades on DAX, Cable, EURUSD, USDJPY, EURJPY and AUDUSD made a profit of 3.42R

Lesson 6:  “Reverse Engineering?” – The trading results from the US were so bad that I need to consider whether trading in the opposite manner to what I did could actually constitute a profitable approach.  The same could be said about the loss-producing trades on the non-core instruments.

That’s it – six points to put into action going forward.  I believe those six steps should be enough to turn me into a profitable trader.


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4 Responses to 3/8: Review of K7-specific blog posts

  1. Pingback: 6/8: Initial post-holiday trades -> Entries improving on DAX/Cable/EURUSD | George's FX trading blog

  2. Pingback: 14/8 – Trader Fitness, Emotions, and detailed chart analysis | George's FX trading blog

  3. Pingback: 17/8: Trading for the week ahead | George's FX trading blog

  4. Pingback: 30/8: Technical K7 considerations and a tonne of good questions | George's FX trading blog

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