Thursday, September 30, 2010
wow !!!
Yesterday, I made 387 dollars in live trading using this double top/bottom method in 12 trades.
Wednesday, September 29, 2010
Good Article
The equation for forex market success is this:
Simple Logical Trading System + Discipline in Execution = Forex Trading Success
the fact is forex is a combination of mindset and method and you need both.
Now that is simple - but most traders don't even get the first bit right i.e. getting a logically based system to win.
Even if you have a logically based forex trading system you must execute it and this means having confidence in its ability to perform. Even if you have a successful trading system, you will never follow it if you don't understand it and have confidence.
The reason for this is you are going to have to trade through a losing period and this requires discipline and discipline is what you need, to turn a good trading system into a profitable reality.
This will Inspire You!
Now you understand that trading success comes from a simple method and understanding then you will see how effective this combination is in this story.
Richard Dennis a famous trader set out to prove that anyone could learn to trade, so he took a group of people who had never traded before and taught them in 14 days.
This was a group that included - both sexes, young and old and the group had diverse occupations and varied from a security guard to an actor yet, they went on to make hundreds of millions of dollars and go down in trading history.
Dennis taught them a very simple method, basically a breakout long term trend following system - but he knew that was not enough - he needed to make them understand it, have confidence in it and trade it with discipline.
Why and How you Can do it
Now you may not become as rich as these traders life isn't like that but Dennis proved anyone can trade, the basics are easy, the understanding and discipline is the hard but you can learn if you want to.
The markets at the end of the day don't beat the trader the trader beats himself
Simple Logical Trading System + Discipline in Execution = Forex Trading Success
the fact is forex is a combination of mindset and method and you need both.
Now that is simple - but most traders don't even get the first bit right i.e. getting a logically based system to win.
Even if you have a logically based forex trading system you must execute it and this means having confidence in its ability to perform. Even if you have a successful trading system, you will never follow it if you don't understand it and have confidence.
The reason for this is you are going to have to trade through a losing period and this requires discipline and discipline is what you need, to turn a good trading system into a profitable reality.
This will Inspire You!
Now you understand that trading success comes from a simple method and understanding then you will see how effective this combination is in this story.
Richard Dennis a famous trader set out to prove that anyone could learn to trade, so he took a group of people who had never traded before and taught them in 14 days.
This was a group that included - both sexes, young and old and the group had diverse occupations and varied from a security guard to an actor yet, they went on to make hundreds of millions of dollars and go down in trading history.
Dennis taught them a very simple method, basically a breakout long term trend following system - but he knew that was not enough - he needed to make them understand it, have confidence in it and trade it with discipline.
Why and How you Can do it
Now you may not become as rich as these traders life isn't like that but Dennis proved anyone can trade, the basics are easy, the understanding and discipline is the hard but you can learn if you want to.
The markets at the end of the day don't beat the trader the trader beats himself
Monday, September 27, 2010
Double Top / Bottom results continued
on 13th sep 13 tick profit in 4 trades
on 10th sep, 2010 48 tick profit in 13 trades
414 tick (5175 dollars) profit in 126 trades(11 days) .... 3.28 ticks (41 dollars) average profit per trade
more than 450 dollars per day
on 10th sep, 2010 48 tick profit in 13 trades
414 tick (5175 dollars) profit in 126 trades(11 days) .... 3.28 ticks (41 dollars) average profit per trade
more than 450 dollars per day
Double Top / Bottom results continued
on 17 sep, 2007, the strategy gave a marginal profit of 7 ticks in 5 trades....but still green is green
Double Top / Bottom results continued
on 20th sep, 2010 , loss of 2 ticks in 16 trades.that again means a loss little less than 50 dollars including transaction costs.
Double Top / Bottom results continued
on 21 sep, 2010, the strategy gave -3 ticks in 11 trades, in total around 50 dollar loss( including transaction cost)
Double Top / Bottom results continued
on 22th sep 2010, the trade system gave 60 ticks ( 65 tick profit- 5 tick loss)
Double Top / Bottom results continued
That double Top method worked in euro-dollar on 24th sep also. profit was more than 1000 dollars per lot. I will backtest it for the whole september and post. waiting for your comments.
Thursday, September 23, 2010
The fate of that trade
I had entered with a target of at least 9 ticks in that trade discusses in previous blog. Entry was initiated against double top, but exited after formation of double bottom with profit of 2 ticks only. Waiting for next entry.
Double Top / Bottom results
stop profit ratio
4 7 1.75
4 17 4.25
5 14 2.8
5 0 na
5 9 1.8
5 13 2.6
6 11 1.83
4 0 na
7 0 0
6 6 1
10 11 1.1
5 0 0
7 70 10
15 34 2.27
9 12 1.33
9 yet to know.......................I am in this trade
Till now, 76 ticks profit and 21 ticks loss...net 55 ticks profit in 15 trades, 687.5 dollar gross profit , 16.5 dollars transaction cost. So, 671 dollars net profit by 1 lot, and it is 11:00 PM.
4 7 1.75
4 17 4.25
5 14 2.8
5 0 na
5 9 1.8
5 13 2.6
6 11 1.83
4 0 na
7 0 0
6 6 1
10 11 1.1
5 0 0
7 70 10
15 34 2.27
9 12 1.33
9 yet to know.......................I am in this trade
Till now, 76 ticks profit and 21 ticks loss...net 55 ticks profit in 15 trades, 687.5 dollar gross profit , 16.5 dollars transaction cost. So, 671 dollars net profit by 1 lot, and it is 11:00 PM.
Double Top
I had a trading idea today. The idea was to trade against Double Top or Double Bottom.
Following are the details of entry and exit in this trade system and the results obtained in 6E i.e Euro Dollar currency futures traded at Chicago Merchantile Exchange (CME) .Suppose the market precisely repeats a high (not considering 1 tick up or 1 tick down), and after making that high second time, I see two 1 minute candles continuously closing higher ; I will enter a short position with stop loss 1 tick above the high, and target same as stop loss. Below here, I have furnished the results obtained on 6E Dec 10 future. Since, I am based in India, I have used Indian Standard Time (IST).
Date Entry time(IST) Long/Short Stop loss(in ticks) Possible profit Ratio(possible profit/stop loss)
23 Sep 4:24 Long 4 7 1.75
This was first trade of the day, rest will be posted on next post.
Following are the details of entry and exit in this trade system and the results obtained in 6E i.e Euro Dollar currency futures traded at Chicago Merchantile Exchange (CME) .Suppose the market precisely repeats a high (not considering 1 tick up or 1 tick down), and after making that high second time, I see two 1 minute candles continuously closing higher ; I will enter a short position with stop loss 1 tick above the high, and target same as stop loss. Below here, I have furnished the results obtained on 6E Dec 10 future. Since, I am based in India, I have used Indian Standard Time (IST).
Date Entry time(IST) Long/Short Stop loss(in ticks) Possible profit Ratio(possible profit/stop loss)
23 Sep 4:24 Long 4 7 1.75
This was first trade of the day, rest will be posted on next post.
Key levels
Key levels to watch when you are trading E-mini S&P 500 or other equity index futures are Initial Balance (IB) High, IB low, Mid-point, IB range extension levels. I will add few more levels to this list. We can discuss later about how to use these levels in trading.
Close and VPOC at same price
First of all, I would like to tell u that VPOC stands for volume point of control, i.e. the price at which maximum no. of contracts has been traded. If the market closes at VPOC. I will find out the odds of market tagging tht VPOC on next trading day in various markets and you will be surprised by the success rate. I will also tell u the other stats like how many ticks market went against if we had taken a position at opening targeting the previous day's VPOC. I will also discuss, how to know when to enter with a target of VPOC, and what shall be our stop loss.
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