I have decided to write my trading journal here for everyone to see and share my trading egy. I will post all my transactions live as they happen.
The Strategy:
Money Management:
1. Max risk per trade is 2-3percent of equity.
2. Just 5 open transactions at any 1 time (excluding final 1/3)
3. First funding is 3000aud
4. I will be using many lots on a micro account
Trade egy: I will be using the 4hr chart for trade entry main analysis, the daily weekly to get desktop.
The basic plan is, I will be looking for false breakouts on the 4hr chart, with special focus on important background support/resistance trend. I will post some examples soon. I am on the lookout for areas of consolidation after a trending period.
Trade collection rules:
1. Consolidation range to be 150 pips
2. False fracture to be at 10pips (some discretion to be used at substantial amounts )
3. Entry to prevent must be entry to first profit point.
4. Judgement to be utilized on which side of range to have a trade.
Matters to consider
1. What is the preceding fad, 4hr, daily each week. If for example there is a powerful uptrend, then ideally you wish to have into the false fracture at the base of the consolidation range. This will put you back in the direction of the trend.
2. Is it over bought/sold.
3. I use the 10, 35 200ema for trend indiion; only go against them if you are at important support/resistance.
4. False breaks at old shirts or bottoms or major trend lines or 200ema are powerful.
5. Be careful if testing the identical region of range for 3rd or 4th period
6. Reversal candle/bar patterns can add to exchange confirmation.
Trade direction:
1. Stop to get put 10 pips away from low of reversal pub
2. Take 1/3 profit at 50 percent of range
3. Take 1/3 in 100% of range
4. Final 1/3 to be given plenty of room to maneuver. If we reach this stage hopefully price has busted out of range, use trailing stop until stopped out.
I will post some back test charts soon.