Well I’ve got to that point now where I need to get some specific systems written down with rules and tested, as I can’t go on fighting with the rabble, I need to bring some discipline into my trading. I can back test them with my forex tester software, which I have had for quite a while but have always found it difficult to get into. It looks similar to MT4 but as I don’t use that, the whole platform needs to be learnt. That’s the bit that’s been holding me back from getting into back testing.
Yes, after three months training with Thinslice trading I appear to have dropped out. I’ve picked up quite a lot from doing the basics with this methodology but have found it too tedious to use and I just don’t like to follow someone elses strict guidelines. I want to develop my own. Same reason I left Forex Training Works a year ago. Just waiting for one or two set-ups a month won’t work for me. I’m still interested in scalping strategies rather than swing trading and will be utilising some of the things I’ve taken from thinslice and forextrainingworks into my own strategies.
I’m going to choose about 4-6 pairs to concentrate on although this might change. Will be trying for the lower spread pairs, that offer more movement. The gbp/usd and eur/jpy are at the top of my list, not sur on the eur/usd as the movement seems a little low even if the spread is tiny. It’s the movement during my session I’m bothered about, not the US or Asian sessions. I will be concentrating on the Euro/London session 5am to 11am GMT, so all my research/testing will be done during this period. I need to get a rule down that there will be no straying out of this period to try my luck in the US session, until testing is done there, if it is at all. Some bad trades were put in during the afternoon session due to frustration, tiredness, creeping in. I’m thinking about only entering trades in the period 7am to 10am as this is the most active. I will need to know the ranges of movement expected during this period in the currencies I choose, so I won’t be pushing too far as I have been recently in my own trading, entering as the move is petering out. Along side the ranges, announcements will need to be monitored. Moves starting anything from 5am seem to reverse after 9am as the markets don’t seem to trend into the afternoon. This will need to be monitored as changes in countries monetary policies may change this in the future. Round numbers 000, 00, will play a big part in my strategies as will the 50 and 20, 40, 60 and 80. I will want to get to know the area around the 50, which is 40 to 60 even better. I will be using price action and maybe the MACD as a trend direction filter, with support and resistance from the overnight channel, yesterdays high and lows, and significant recent price rejections to trade off. Still thinking of using the 10 min chart although the 5 min is tempting again and I will be using the daily charts for the bigger picture.
My blog will continue, but now reporting on this phase of my journey. I need to keep accountable which will keep me going during any dark times ahead.