Traderdesk journal

[TraderDesk]

Hi, I will be documenting my trades and why with a demo account.

Trading Platform:
For the purpose of this journal I will be using a trading platform that comprises of Heiken Ashi, ADR, 240ma, Stochatics and Awesome Oscillator. The last three are from Bob's 10.4 which is useful to validate the higher probability of a successful trade..

With this platform I will be adding new positions to my winning trades. Positions that are in a loss will quickly be scaled down.

Some trades occasionally will be left open as long as the daily and/or weekly trend is paralleled to those positions with S/L at BE

Points to remember:
Capital preservation is very important
Add to winning positions
Close losing positions quickly by scaling down
Higher probability off a successful trade on the right side of the trend
Trade in currency/ies pairs that have the strongest trend
Know your currency pair inside out
Visualize, visualize and visualize price action on long-term, swing and intraday charts

Will add more points during this journal lifespan

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I will also be using an application called FX Synergy that allows me to trade multiple accounts directly from one interface. I use this for my real accounts as I have different brokers with different types of accounts. It makes my trading and monitoring of those trades much easier...

MyFXbook will be tied to the accounts as well to facilitate in analyzing trades... URL is at http://www.myfxbook.com/members/Traderd ... pha/533766



Tomorrow April 8th will be the start of the trading journal...

[TraderDesk]

I have decided to concentrate on xxxJPY pairs for most of my trades for several reasons, one being the Japan CB fundamental shift in monetary policy. Another reason is I like the month chart for GBP/JPY going in a uptrend as well as the volatility on JPY pairs....

April 8 2013:

Open positions on GBP/JPY around 151.5 level. Why? Well I am showing G/Y in a strong trend so I need to start somewhere... Seriously I am looking at a 15M chart and PA is very close to the HA line so technically we are still in a bull intra-day trend so I decided to enter with a small position... Daily STO is showing overbought but as long as PA is above the HA on 15TF then I will continue to leave and add positions...

Otherwise if we go below 15TF HA we are in a minor pullback or short-term ranging market as we are still above the daily HA as well the hourly HA...

Posted below is the 15 minute chart. As you can see price is right on the Daily R1 line and HA line is there as well. STO is below 20 as well. As I said above we are still in a trend and above the hourly HA as well so I would add a new position here as well...

gbpjpy15.png

Looking at the hourly chart we can see PA is above the hourly HA as well so we know we are still in a bull market. PA action is trying to come down with STO reflecting this. Question is how much? I don't know but if the STO is coming up from the bottom and is at or above the 15TF HA I will either add a new position or watch my existing positions.

gbpjpyh1.png

[TraderDesk]

Here I drill down further into PA at the 5 minute TF. 150.78 level seems to be a good support for now as shown in this chart. At least 4 times PA stopped at this level... We will see if this continues to hold true as the day goes on.

ADR for the moment shows a range of 101 and 217 as a 10 day average. So theoretically we can look at PA to be from 149.80-90 low to 152.70 high at the moment. ADR are the orange lines in the 5 minute chart below...

gbpjpy5.png

[TraderDesk]

Hourly chart STO has gone below 20 but PA has yet to make a new low so far.

gbpjpyh1.png

15 minuteTF PA is looking ready to climb once again and the 5 minuteTF is also set for a climb. At these conditions I have added another BUY and if price starts to go down will close it out BUT if price goes up I will start to add another position as well if I feel the next big move is starting to happen.

[TraderDesk]

So far today price action was constrain. ADR shows only 118 pips of movement and compare to the average that is about half. A breather on this pair....

The below 4 hour chart is now showing STO almost down by half. PA did not move much so that shows overbought levels are winding down giving the possibility of a move higher tonight or tomorrow... Either way I am in the trade...

gbpjpyh4.png

[TraderDesk]

April 9th 2013:

Start of a new day. Price action continues from yesterday low volatility in the GBP/JPY pair. AUD and NZD yen crosses were stronger so had some upwards volatility which on a fundamental level could be some assets being transfer from Japan to higher yielding currencies. I should be on those pairs but for the purpose of the journal I will stick with Cable in the interim...

Looking at the GBP/JPY hourly chart shows PA is still above the HA line so bullish trend continues. Also STO is about to go below 20. As long as PA is above the HA line then I will look for continuing and adding new buy positions if the 15 minute chart PA is above the HA line...

gbpjpyh1.png

Drilling down I look at the 15 minute TF and PA is at the daily pivot. STO is below 20 and PA is making a new daily low...Now PA is below the HA line which is a bearish signal so I will wait price to go above the HA line before adding more positions for the longer-term...

gbpjpy15.png

[TraderDesk]

Earlier I closed a few positions that were in profit as I saw PA was going below the 15 HA line and wanted to accrue some actual profit... I like to do this as it makes no sense to fight a battle without walking away with something...

[TraderDesk]

It is right after the GBP numbers and as you can see on the 15TF PA has come back up to the HA line. If it closes above we can see the start of a new bullish intra-day trend. I have placed some buy stops up higher. ADR shows potential for 152.500 area to be touched.

gbpjpy15.png

[TraderDesk]

15TF PA has closed over the HA line for the moment and is over the daily pivot as well. Hourly STO is coming up from the bottom and 4 hour TF STO is coming down slightly at around the 70 level...

I have as I stated previously put some buy stops higher up and I will look at the 5 minute HA to trade some positions off of that as well...

On the 15 TF I could have added positions at DMid S1 as well as DS1 but I want to be careful of my floating DD. JPY crosses can retrace quickly by a large amount and the risk is not worth having a large floating DD. There is always another day to trade...

gbpjpy15.png

[TraderDesk]

Some points to think about:

Capital preservation is very important. Whether your trading for yourself or for other investors you need to preserve capital. This is done in various ways and it has to work for your style of trading. Capital MUST be PROTECTED. I emphasize this as many traders do not understand that this is the difference between being successful or not. :!:

What I do to help with CP (Capital preservation) is when a trade I open is going to plan I will continue to open up new trades in the same direction. How I do this depends but you can do it by pips, HA lines, pivots, percentages etc... As you do this assign each new position a target. Target can be what the original trade is or you can use ADR or pivot lines etc... Now when you start to open these positions you need to make sure that you can get out of them with a small loss as you do not want to accumulate DD (Drawdown) which is bad, bad and BAD.

Point: Add to winning trades and scale quickly out of bad trades.

Now let's take the case of the Yen which has change in a fundamental CB policy decision. You can now ride this strong current and take advantage of the strength of the move. This current WILL have ebb and flow to its strength so don't over-leverage yourself but do take advantage when it flows to maximize your capital. Look for currencies that Yen sellers will switch to and take positions there. In the FX market, fundamental sellers like to buy into higher yielding and/or more stable countries. AUD/JPY is an example. Sure it is at an all time high but the fundamentals have change so a bull run can go on. GBP/JPY is at a low so the potential for long-term bull runs are a higher probability.

Point: Stay in the major trend of currency pairs. Fundamentals are a very strong driving force.