Week1 Sim-Trade Review What I learned from the attached trades details file: I did follow the action plan on not widening stops but i was not following my setups exactly. If i had followed the written setup better, 3 losing trades in 10/8 and 3 losing trades in 10/9 should not be taken; the two losing shorts on 10/11 should be exited at market when market proves my anticipation before the entry is wrong. The necessary exit of two shorts of 10/11 if following the written setup: http://i.imgur.com/TPdUvkz.jpg
I also backtested three different exit options, using the same entry for 36 real trades. The option exit 3 works the best among 3 possible exit rules and my real exit. Exit 3: Allowing one <=2ps PB and exit when max. favorable move ending is confirmed or if 4ps PT has reached. ( exit when 4ps PT reached even if max. favorable move has not ended yet.)
The definition used in the file and the above:
Maximum Adverse Move: >=2ps if immediately in red. Only allow one time pull back. When the first 1m bar with a high above previous bar high included in one small up leg by 3 ticks, the first pull back has ended.
Maximum Favorable Move: either the immediate favorable up move or the favorable move after first pull back. When the first 5m bar with a low lower than previous bar low included in one down leg by 3 ticks, the favorable move has ended. Allow one time 2points or smaller PB.
Also I would like to describe the reason why i put entry and exit on 5m candle chart some of which seemed to look like random entries: in the written setup i said to observe 5m candle chart for big picture and use 1m bar chart stalking for entry; however by putting those entries and exit on 5m cangle chart, it is obvious that i was not really following the big picture shown in 5m chart; otherwise, i would not be longing the top or shorting the bottom of a tight trading range on 10/8 and 10/9 repeatedly. I feel this is a great way to remind myself to really follow the big picture shown in 5m chart because i donot think i will like to see those "random entries" shown in 5m chart in the future; therefore those confusing charts are motivating me greatly to make necessary changes.
I also backtested three different exit options, using the same entry for 36 real trades. The option exit 3 works the best among 3 possible exit rules and my real exit. Exit 3: Allowing one <=2ps PB and exit when max. favorable move ending is confirmed or if 4ps PT has reached. ( exit when 4ps PT reached even if max. favorable move has not ended yet.)
The definition used in the file and the above:
Maximum Adverse Move: >=2ps if immediately in red. Only allow one time pull back. When the first 1m bar with a high above previous bar high included in one small up leg by 3 ticks, the first pull back has ended.
Maximum Favorable Move: either the immediate favorable up move or the favorable move after first pull back. When the first 5m bar with a low lower than previous bar low included in one down leg by 3 ticks, the favorable move has ended. Allow one time 2points or smaller PB.
Also I would like to describe the reason why i put entry and exit on 5m candle chart some of which seemed to look like random entries: in the written setup i said to observe 5m candle chart for big picture and use 1m bar chart stalking for entry; however by putting those entries and exit on 5m cangle chart, it is obvious that i was not really following the big picture shown in 5m chart; otherwise, i would not be longing the top or shorting the bottom of a tight trading range on 10/8 and 10/9 repeatedly. I feel this is a great way to remind myself to really follow the big picture shown in 5m chart because i donot think i will like to see those "random entries" shown in 5m chart in the future; therefore those confusing charts are motivating me greatly to make necessary changes.