Here's my beginners fox hunter statement for today.
The theory is one thing, but when you're in the driving seat actually trading it's easy to get lost. To be honest, I'm not sure I got this right at all, even though the results are good with a 7% return today, I got really tied up hedging positions then trying to get back out of. It's seems waiting for things like the good old confirmation candle just doesn't work, my first trade was a short on NZDUSD after a candle close, then of course it went back up to pin highs and kept me in DD for hours. Every other trade I tried to get right in the top (or bottom of pins) sometimes market order, sometimes a limit order. Have you ever noticed how hard it is to place a market order right at the edge? e.g. previous pin high, then later bullish candle and you have to play it short, just goes against my pre-conditioned mind but I know it works, because that's what I did today. So the strategy that seems to work for me so far is get it right at the top or bottom of the pins, then hope it doesn't keep going but returns back down (up) again. At the end of the day, you just don't know what price is going to do in each individual case, that's why it's not about one trade but the edge the technique will give you. So that was the easy bit, the difficult thing that really messed with my head today was what to do when price moves past the pin high/low and you get into drawdown. I tried a couple of things when this happened. One was a stop loss - didn't like that one much because I got taken out a couple of times, only for price to go back in my favour, I also tried keeping the first trade open, then adding a second same direction when the first was already is DD. e.g. first trade goes 20 pips DD, price seems to hang, so open another trade same direction - again this goes against my preconditioned mind, but seemed to work pretty good, some instances repeated the process three or even four times. The third option when initial trade goes into DD was to open a hedge trade, this worked okay also, but complicate things a whole lot. So I think this is a key part of the strategy, what to do when the first trade goes into DD, I know xrismak carried the USDCHF for weeks and eventually it came good. I guess I'll try all this again Monday and see what works best for me. It may still be easiest just to close the trade and open another at the new level - any ideas?
Have a great weekend everyone
Pips400
Fox Hunting 1 26 July 2013.JPG
Fox Hunting 2 26 July 2013.JPG
Fox Hunting 3 26 July 2013.JPG
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