17/8: Trading for the week ahead

Review of the last 38 trades

Classified 38 trades of last two weeks into good, questionable and bad setups.  I think human nature dictates that one is to be quite hard on oneself when doing such a review.  I am sure that my trading has been progressing steadily in terms of execution and selection, but even though I classified 2 as “questionable”, and 8 as “bad”.  Thus 74% were fine, the other 26% should have been avoided.

All this closely ties back to my point of being more selective with setups and better with entries.  Some simple points to take away from the bad setups, or saying what made them “bad”:

  • EMA Alignment not being in place
  • Lack of EMA respect – things being too wicky
  • Not trading in line with trend & sentiment
  • Absence of key level and/or technical pattern
  • Inconsistent Stochastic reading (this is something I only added in this week)

On the positive side, existing progress in terms of the Lessons:

  • Overall have been trading better – better selection (Lesson 1,3 and 4)
  • Scratch Result from 39 trades (14W-6BE-19L, -0.32R) trx ev -2.1R (Lesson 2)
  • Have focused on my key instruments and not taken any exotics  (Lesson 5)

plan

I will avoid doing the “bad” things this coming week.  In addition here are the things that I will

  • Timing: Prep Work 6:45-7:30, trading 7:30-9:30 and then again 13:00-16:30
  • Sharper trend/sentiment analysis and looking out for change in trend throughout the session
  • Looking for cleaner charts and avoiding messier ones
  • Sharper focus on key levels and technical patterns
  • Pay close attention to Stochastic (5,5,5) on 5M – require bullish Stoch for long trades and vice versa – this will reduce the number of trades but likely also improve the bottom line results – this will essentially act as a filter.
  • Waiting for price, EMA’s and Stoch to come together before entering
  • Wait for confirmation – wait until 5M candles have actually completed
  • Adjusting entry tactics – depending on Stoch XO and distance from EMA10  [this addresses Lesson 4)
  • Practice for two hours in Forex Tester each day – it should be easier to do now that I now what I am looking for.
  • Do Psych Prep prior to trading (5-10 min) and Psych Review after the session (10-15 min)

At the end of this week the thing I will be most interested in will be whether I traded in line with the above points.  I have also formulated my strategy into a programmable-type document (just as I am in the process of doing for the futures trading also).  Let’s set a goal to have 85% of executed trades as good/reasonable setups (rather than the 74% I had this week)

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One Response to 17/8: Trading for the week ahead

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

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