Transitioning to markets available in Australia's time zone

[Roller_1]

Can the system be coded or do you have discretionary elements in there? Sounds like backtesting would save sometime/possibly money!

Profit targets might make you feel good but might not be the best option

 

[Gringotts Bank]

Who advised you to scale out?

http://throwinggoodmoney.com/2016/04/the-myth-of-scaling-out/

Just get a simple entry signal (eg. MA cross), add your discretion to see which trades to take, and start. If it fails, then it's your confidence that needs work. Trading doesn't have to be laborious and complicated.

 

[CanOz]

Can the system be coded or do you have discretionary elements in there? Sounds like backtesting would save sometime/possibly money!

Profit targets might make you feel good but might not be the best option

There are three types of types of plays, the breakout retest should be easist to code. The other two are somewhat more difficult but possible. I'll trade it live with a small account first, following the rules. I can code up part of it aside go and trial those parts as level indicators until I get them how I like. The rest will take time. I have plenty of time and plenty of capital. One day it would be good to be able to back test it, but it's not my full intent.

 

[CanOz]

Who advised you to scale out?

http://throwinggoodmoney.com/2016/04/the-myth-of-scaling-out/

Just get a simple entry signal (eg. MA cross), add your discretion to see which trades to take, and start. If it fails, then it's your confidence that needs work. Trading doesn't have to be laborious and complicated.

GB, I'm gonna have to put you on ignore or just quit the thread....

 

[Gringotts Bank]

GB, I'm gonna have to put you on ignore or just quit the thread....

You said you wanted feedback. I provided a link to something that shows scaling out doesn't work. And I advised keeping it simple. Do you want feedback or not?

 

[CanOz]

First up tomorrow, practical driving test. Was supposed to go to a trader meet up in Brisbane tonight but I'm knackered and off to bed. After I get back tomorrow morning, hopefully with a qld licence in my pocket, I'll be working on my trade record and journal, the last of my amibroker workspaces with the new level indicators and a daily preparation worksheet to document my daily routine.

We should be ready for launch on Wednesday.

 

[CanOz]

You said you wanted feedback. I provided a link to something that shows scaling out doesn't work. And I advised keeping it simple. Do you want feedback or not?

Don't be a smart a$$. You know what you posted. You don't even know the full strategy, part of it is mean reversion and you don't want me to scale out? I should go all out and trail a full stop on the trend trades? Don't even mention the MA cross again.

 

[Gringotts Bank]

part of it is mean reversion and you don't want me to scale out? I should go all out and trail a full stop on the trend trades?

Well I don't, but maybe FX markets behave differently.

That link I posted above about scaling out was legitimate.

As is this one for trend capture systems: http://www.automated-trading-system.com/profit-targets-trend-following/

Note Howard's comment in the comment section.

That's why I asked who is giving you the instruction to scale out. If he's a big shot then I'll butt out.

 

[CanOz]

Well I don't, but maybe FX markets behave differently.

That link I posted above about scaling out was legitimate.

As is this one for trend capture systems: http://www.automated-trading-system.com/profit-targets-trend-following/

There is difference with compounding....he acknowledged that.

 

[CanOz]

GB, there's also the issue of how to manage the trailing stop while I'm not at the screens....although if this works as planned I may move back home.

 

[Gringotts Bank]

GB, there's also the issue of how to manage the trailing stop while I'm not at the screens....although if this works as planned I may move back home.

Just use IG. Plot a trailing stop or a trendline and get them to trigger if the line is touched. Walk away and do something else.

 

[skc]

Each to their own of course but I could never do all that like you do, I'd rather just have a few plays that I've learnt, the rest I know or is in my head, I'd rather be trading and watching/learning the markets rather than writing up big plans, things that actually help my trading, writing a plan out has never helped me or made me any profits, plus I'd never look at it, I'd write it up then put it in a drawer or on the desk and it would gather dust, not like you forget those things, like oh crap what's my risk percentage again? *refers to massive plan on page 7 section 15.1 annnnnd I've missed the move.

But I guess I'm shorter term trades and definitely couldn't be that systematic, more feel and market flow and patterns, especially with the dax, everything is dynamic and ballpark, not exact for me. Not that I know anything of course, your way of doing things just amazes me

Luckily there's no right or wrong way, if it works for you, it works!

Having a plan helps one structure ideas and identify anything that hasn't been thought about. Power/internet outage is a good example... I don't have that on my list when I first started trading and it was panic station when my internet went down. I ended up taking my desk top, monitors etc to my in-law's place 15 minutes drive away and set up there for a day (this was before mobile phone tethered data was the norm).

So having a plan can often help... whether it needs to be written down or not is a different matter.

I do agree though, some of the more dynamic decisions done in market is hard to write down. But there are times when a plan can be very helpful.

A quick example... I read over the weekend that the government has announced backtracking of pathology funding cuts, and I know ASX stocks PRY and SHL are set to benefit. So I studied the charts, studied the impact on stock prices when the cuts were announced, and came up with a plan on how big a size to put on, how much I'd risk, whether I would chase if the stock gaps up X%, where I'd sell etc etc. Now I didn't write these down on paper and refer to them at the open... but the actual planning exercise means I was a lot better prepared to trade these names. And they paid quite well today too.

Planning is preparation... and preparation always helps

 

[Roller_1]

There are three types of types of plays, the breakout retest should be easist to code. The other two are somewhat more difficult but possible. I'll trade it live with a small account first, following the rules. I can code up part of it aside go and trial those parts as level indicators until I get them how I like. The rest will take time. I have plenty of time and plenty of capital. One day it would be good to be able to back test it, but it's not my full intent.

Coding up semi discretionary plays would present its own issues i would imagine, you have it worked out anyway by the sounds. Good Luck!

 

[CanOz]

Just use IG. Plot a trailing stop or a trendline and get them to trigger if the line is touched. Walk away and do something else.

For the purpose of this live exercise, i'll be using 2 targets and a 30% trailing stop on the 'trend' trades. The MR trades will still use a 2 target stop but i can apply some discretion with that and trail a portion of the final parcel if i wish.

I'm using NT to trade this and i cannot have the FXCM platform open at the same time. I can use a mechanical chandelier or multi bar stop, but i have to physically trail it.

 

[CanOz]

Coding up semi discretionary plays would present its own issues i would imagine, you have it worked out anyway by the sounds. Good Luck!

Thanks, this is a 100 trade exercise and at the end during the trade review process i can also decide if some degree of automation is worthwhile/feasible..

 

[Roller_1]

Thanks, this is a 100 trade exercise and at the end during the trade review process i can also decide if some degree of automation is worthwhile/feasible..

for someone who has been discretionary trading previously like yourself for a long period of time (assuming profitable) and trading fairly standard setups (re-tests of support,BO, triangles etc), then if you follow proper risk management then there is no reason you shouldn't be profitable over a large enough period. Could be a different story if you just traded some random pattern you think you've discovered one day.

What will you do if after 100 trades you are BE or in drawdown? it doesn't necessarily mean your system is no good.

 

[CanOz]

for someone who has been discretionary trading previously like yourself for a long period of time (assuming profitable) and trading fairly standard setups (re-tests of support,BO, triangles etc), then if you follow proper risk management then there is no reason you shouldn't be profitable over a large enough period. Could be a different story if you just traded some random pattern you think you've discovered one day.

What will you do if after 100 trades you are BE or in drawdown? it doesn't necessarily mean your system is no good.

Trading the Dax wasn't like that though, it was very short holding periods and re-tests of support,BO, triangles etc, only provided context for trades, entries we more order flow feel. Risk management was hang on with a mental stop until you could get a protective stop in.

Once i have my 100 trades i'll review them for the criteria i've already outlined in my plan. After that i'll adjust my trading plan accordingly and decide if/how to proceed.

Thanks for the interest.

 

[CanOz]

Well I've had my first live trade closed. It was a loss of 51 pips or 25.5 AUD. I had a second go at that one, the first time it triggered was in Global Simulation Mode, so i caught it and swapped over as it hit my trigger price again.

I had a couple of trades trigger before i realized i as still in Global Simulation Mode one is doing well, I'll let it play out anyway, it was a long on the USDMXN at 18.2150

I have one open trade at the moment on my live account, a short on the AUDJPY at 80.56. We'll see how that hold up over night....

 

[CanOz]

So this is the current AUDJPY trade...and the closed GBPAUD trade.

 

[CanOz]

I have a USDJPY trade pending....thats it for tonight