The purpose of this journal will be to record trades, not to educate. As of now, templates and indicators will not be posted. If you would like to learn similar methods please visit the following thread - http://bit.ly/dZ9IBW.
I would like to thank Dredding82 for all of his work here on the thread. Also, I would like to thank Paulus, who helped develop the 5M system that I will be largely using here. Both seem to be incredibly skilled traders.
About Me
I'm a 22 year old graduate student and trader living in Chicago, Illinois.
Method
I will be trading off of two specific patterns.
The first is a traditional pattern, a simple double-top or double-bottom. I will look for this to happen on a camarilla pivot. I will then look for Heiken-Ashi to confirm the bounce.
I would like to call the second pattern a predictive 1-2-3. Price will push through a pivot and begin to rally back towards the pivot. This low or high will create the one (1) in the pattern. Once price rallies back towards the pivot I look for a rejection of the pivot. This will create the two (2) in the pattern. At this point I look for Heiken-Ashi to confirm the rejection of the pivot. Price is now headed back towards the previously created one (1). Traditionally, most would be waiting for a break of one to enter. However, this method uses a Heiken-Ashi change in an effort to predict a coming break, allowing for earlier entries causing greater profit potential and lower stop losses.
In both cases my stop loss orders are placed behind previous support or resistance. My take profit orders are waiting at the next pivot, assuming that the pivot is less than three times the distance of my stop loss away. If the pivot is more than three times the distance of my stop loss I will take profit at three times my stop loss.
I do not take trades with less than a 1:1 risk-to-reward ratio.
Routine
I will trade the London session everyday. That is 2:00am to 10:00am CST. I will update my journal at the end of that trading session.
Pairs
I would like to thank Dredding82 for all of his work here on the thread. Also, I would like to thank Paulus, who helped develop the 5M system that I will be largely using here. Both seem to be incredibly skilled traders.
About Me
I'm a 22 year old graduate student and trader living in Chicago, Illinois.
Method
I will be trading off of two specific patterns.
The first is a traditional pattern, a simple double-top or double-bottom. I will look for this to happen on a camarilla pivot. I will then look for Heiken-Ashi to confirm the bounce.
I would like to call the second pattern a predictive 1-2-3. Price will push through a pivot and begin to rally back towards the pivot. This low or high will create the one (1) in the pattern. Once price rallies back towards the pivot I look for a rejection of the pivot. This will create the two (2) in the pattern. At this point I look for Heiken-Ashi to confirm the rejection of the pivot. Price is now headed back towards the previously created one (1). Traditionally, most would be waiting for a break of one to enter. However, this method uses a Heiken-Ashi change in an effort to predict a coming break, allowing for earlier entries causing greater profit potential and lower stop losses.
In both cases my stop loss orders are placed behind previous support or resistance. My take profit orders are waiting at the next pivot, assuming that the pivot is less than three times the distance of my stop loss away. If the pivot is more than three times the distance of my stop loss I will take profit at three times my stop loss.
I do not take trades with less than a 1:1 risk-to-reward ratio.
Routine
I will trade the London session everyday. That is 2:00am to 10:00am CST. I will update my journal at the end of that trading session.
Pairs
- EUR/USD
- GBP/USD
- AUD/USD
- USD/CAD
Time Frame
- I will be using a 5M time frame.
Money Management
- I will be risking 1% per trade.
- I will never have more than 8% of the total account exposed.
- I will compound daily.
Expecations
- I expect an average of three trades per day per pair. This will be a total, on average, of 12 trades per day.
- I expect, on average, to win 50% to 66% of trades. That is, one out of every two to two out of ever three trades.
- I expect to have up to three losses in a row on any given pair.
- I expect to have an average of one losing day per week.On average, this losing day will be half as large as my average winning day.
- Historically, one losing day per week is relatively high given my methodology and performance. However, psychologically I find this expectation beneficial.
Found a way to detect where the market will turn.