I started a thread in the trading systems area a while ago and a few people pointed out that I really wasn't explaining a system. They're right. My system, such as it is, doesn't involve much more than looking at a chart and picking a direction. The vastly more important aspect to my trading is how I manage the trades when they are open rather than fretting about when/how/why to open them.
Take a look at the screenshot below. The left hand figure at the top is my equity, the second figure is my open trades profit. This took half a day and did involve sitting through some drawdown but it shows what is possible and what I intend to carry on doing for the forseeable future until I can start taking regular money out of my account.
For anyone interested the thread is here...
http://www.forexfactory.com/showthread.php?t=330762
I decided that rather than try to explain how and why I do what I do I would just open this thread and document what I am doing and hopefully someone will find it useful and informative. If you're reading this and want to join in then please do, any information about basket or trend trading, or basket trend trading, is welcomed.
***** UPDATE 11th Jan 2012 *****
The basic method is more or less set in stone now. Open the trades, give them time to develop, close the bad ones, trail the good ones. There are two very important rules that I need to stick to. The first one is to use the same postion size on all trades and never to increase it unless the account balance and MM rules allow. The second is to only open one trade per pair at any one time unless there is a very good reason to add on.
The position sizing is fairly straightforward to start with, I will be using 0.01 for every 100 gbp in my account in closed trades or locked in equity. I will make this safer as I go along and my eventual target will probably be 0.01 for every 1000 gbp.
***** Update 12th Jan 2012 *****
As you have probably noticed I have added a trade explorer to the thread. The account it is linked to is a test account that I have used to test various strategies (for the most part losing as you can tell!). The data I am interested in is the year to date figure. I started with 50 gbp to see how far I could get trading this method.
***** Targets *****
My first minor target is to acheive a balance of 200 gbp by the end of Jan 2012.
My first major target is to achieve a balance of 1000 gbp by the end of May 2012.
Once I have reached the target of 1000 gbp in the account I will be withdrawing 50% of my gains on a weekly basis.
I will update this area as and when targets are hit.
Take a look at the screenshot below. The left hand figure at the top is my equity, the second figure is my open trades profit. This took half a day and did involve sitting through some drawdown but it shows what is possible and what I intend to carry on doing for the forseeable future until I can start taking regular money out of my account.
For anyone interested the thread is here...
http://www.forexfactory.com/showthread.php?t=330762
I decided that rather than try to explain how and why I do what I do I would just open this thread and document what I am doing and hopefully someone will find it useful and informative. If you're reading this and want to join in then please do, any information about basket or trend trading, or basket trend trading, is welcomed.
***** UPDATE 11th Jan 2012 *****
The basic method is more or less set in stone now. Open the trades, give them time to develop, close the bad ones, trail the good ones. There are two very important rules that I need to stick to. The first one is to use the same postion size on all trades and never to increase it unless the account balance and MM rules allow. The second is to only open one trade per pair at any one time unless there is a very good reason to add on.
The position sizing is fairly straightforward to start with, I will be using 0.01 for every 100 gbp in my account in closed trades or locked in equity. I will make this safer as I go along and my eventual target will probably be 0.01 for every 1000 gbp.
***** Update 12th Jan 2012 *****
As you have probably noticed I have added a trade explorer to the thread. The account it is linked to is a test account that I have used to test various strategies (for the most part losing as you can tell!). The data I am interested in is the year to date figure. I started with 50 gbp to see how far I could get trading this method.
***** Targets *****
My first minor target is to acheive a balance of 200 gbp by the end of Jan 2012.
My first major target is to achieve a balance of 1000 gbp by the end of May 2012.
Once I have reached the target of 1000 gbp in the account I will be withdrawing 50% of my gains on a weekly basis.
I will update this area as and when targets are hit.