Monday morning. Sitting in front of my trading charts. This week will be quite focused on trading, as I’ll have time up my sleeves. Briefly sharing some of my current routines and also included graphs of actual trading performance for 2018 thus far – nothing astonishing just some grinding.
- Checking the news schedule for this week – quite an absence of Tier-1 data – nothing at all on Monday, Tuesday or Friday – and Monday is a public holiday in the US, Canada and Japan – hence not a lot of scheduled events for trigger volatility and price movement
- Looking at the Strength/Weakness matrix – something I learned from trading coach Paul Wallace – on the daily and weekly timeframes, the USD, GBP and CAD have been the strong ones over the past couple of months, with JPY, AUD and NZD being on the weak side.
- GBP continues to be influenced by Brexit developments in very sporadic ways – expect GBP pairs to be more difficult to trade.
- Trade documentation – havn’t had time to complete this, and Felix in the trading room does this very well already – the secret is to make your trades mirror his as closely as possible and that way avoid having to do your own documentation. More seriously, it would be better if I caught up on documenting my own trades the past few weeks.
- Position sizing – I have continued increasing the financial value of a unit of risk over the weeks (currently risking £300/trade) – this also means checking the funds in my FXCM trading account as the leveraging rules are now tighter thanks to the new ESMA rules. The idea is after all, to trade for a living, so one has to risk more in order to make more.
- As it’s Monday morning, am carefully studying my way through the setups that Felix has issues for the trading room over the weekend. His trading room is something I would strongly recommend for people looking to improve their trading. Very detailed coaching and instructions, together with an active and constructive members community.
- I set up a chart for each setup on my TradeStation platform, ready to trade it if the setup meets the requirements throughout the week – trades are only taken on the basis of completed candles and many of them are on higher timeframes – so most of the time there is little actual ‘trading’ to do.
- Recommended Reading – not a trading book – but recently I have revisited and am reading again – ‘The Winners Bible‘ – an excellent and practical personal development text written by Kerry Spackman.
- Will try to get several other things done on the trading front this week (since my other work project is going to be in a lull for the next fortnight) – testing out demo accounts with two new brokers, finding my own reversal setups & submitting them to the trading room for discussion, thinking how I could incorporate TraderDi’s trend-following setups into the charts I am already looking at for the reversal setups, publishing another blog post in “Traders Talk” series, and maybe a bit of coding here and there. Shaping up to be a busy week!
Equity Curve for 2018 YTD
Looking at my 2018 trading results is encouraging – I have not taken a large number of trades – just under 150 – all of these were either using trend-following setups using the TraderDi technique, or reversal setups in Felix’ trading room. In summary, the trend-following was profitable at the beginning, then I gave back some, then I stopped trading it (around June/July) because I could not prove profitability in testing.
The reversals started with a huge blow at the outset (a big loss in the first week since I didn’t really know what I was doing) and since then a slow and steady grind up – looking very promising so far.
Putting the two graphs together, the combined curve looks like this:
During 2018, there have not been any trades that I took on the whim, I never violated the position sizing rules and I traded properly. It’s taken a while to get the discipline but it seems to be in a reasonable state now. A case of having a clear picture of what ‘good trading’ looks like and putting processes and routines to turn that into habits.
All right, let’s see what this week and the rest of 2018 brings on the trading front. Happy trading everyone!