boru's price action journal
- Thread starter boru
- Start date
In the first post of my journal I stated I wanted to go back to basics. This is as basic as it gets , a written plan, a rough written plan but its a start.
What kind of trader do I want to be
Not sure, is the short answer. I have dreamed of daytrading for years. I like the idea of trading for income, controlling my risk by being out of the market when I'm not actively trading. Offers more trading opportunities. On the other hand I can see the appeal of EOD trading, not chained to a desk all day, wider assortment of trading vehicles. At this time I have the freedom to daytrade .
What sort of trading is the most comfortable
I am a type A personality so a short term type of trading is probably a better fit for me. Scalping is to fast, but I am finding the 1 min bar moves enough to interest me without getting lost.
Instrument to trade
Having committed myself to limit my study to PA (no indicators) studying Wyckoff with the help of a group of likeminded traders trading the NQ feels like a good fit, and I think I'm starting to understand its character a little better.
Timeframe
The 1 min seems to offer a good mix of opportunities and trend, certainly enough to satisfy my needs at this time. As I said earlier EOD does hold an interest for me.
System
I will begin using SLA advocated by DbPhoenix .The system will be a work in Progress and I will continue to post results in my journal. right now I am entering with two contracts and exiting on breaks of DL/SL or LSH and LSL I am in the process of backtesting my exits now.
What kind of trader do I want to be
Not sure, is the short answer. I have dreamed of daytrading for years. I like the idea of trading for income, controlling my risk by being out of the market when I'm not actively trading. Offers more trading opportunities. On the other hand I can see the appeal of EOD trading, not chained to a desk all day, wider assortment of trading vehicles. At this time I have the freedom to daytrade .
What sort of trading is the most comfortable
I am a type A personality so a short term type of trading is probably a better fit for me. Scalping is to fast, but I am finding the 1 min bar moves enough to interest me without getting lost.
Instrument to trade
Having committed myself to limit my study to PA (no indicators) studying Wyckoff with the help of a group of likeminded traders trading the NQ feels like a good fit, and I think I'm starting to understand its character a little better.
Timeframe
The 1 min seems to offer a good mix of opportunities and trend, certainly enough to satisfy my needs at this time. As I said earlier EOD does hold an interest for me.
System
I will begin using SLA advocated by DbPhoenix .The system will be a work in Progress and I will continue to post results in my journal. right now I am entering with two contracts and exiting on breaks of DL/SL or LSH and LSL I am in the process of backtesting my exits now.
Using this chart, a short at 76 is called for. If your entry is tripped and makes it to 73, you have your lower high. If it's tripped and doesn't make it to 73, then you scratch.
Think of it as a form of "front-running".
Was just discussing this with Niko in the chat. I was viewing the 60 min chart the same as a 1 min chart. He made a comment that if price traded below 76 He would be bearish, I didn't realize he was using the bottom of the bar, I was giving price more room. Is this what you mean by price risk vs info risk?
Spent the better part of last night reading over some older posts I'd printed out, and I realized I remember all this, the entire SLA protocol is only 6-8 lines long, The concept of HH's and LL's is easily understood, why is this so maddeningly elusive. This is not rocket science! Then I realized my problems only happen in RT, hindsight charts are a snap. Even watching RT there are some (a few lol) moments of lucidity and clarity. The problem is me, how I think, how I behave in RT. I see there are weaknesses in my ability to see PA in real time. I need to watch more replay . I have been fooling myself thinking I am better than I am . Granted I'm only trading SIM but my results are terrible. Things I need to reconsider 1. should I go back to observation? just for a short while. 2. continue SIM trading to develop better discipline. now that I'm more aware of it. 3. Stop reading so many threads and just refine and develop what I know (and is probably enough to be profitable). 4. start backtesting. Its Friday, have the weekend to get started on this, in the meantime here is what I did today. It was pretty wild ,large fast swings.
1. Premarket saw a short at 8:26, exited at the LSL at 75, and because price made a HL.
2. price trades up to 83.75 breaks DL, and I entered at what I thought was below the crest of the wave, but the bar bar closed so fast it wasn't a RET . Price did drop tho, all the way back to 75, where it jumped straight up, stopping me out
3. Price didn't make a HH so after a RET I shorted at 78 ,turned out to be the low, should have scratched sooner.
4. Buyers push price up to 86.75 and can't hold it there Breaking a DL and forming a RET which promptly reversed , remembering the earlier trade I scratched sooner. The wide swings and long bars were a little unnerving too. I stopped trading at this point.
While today was disappointing there were a few things that spark hope (Thank God it doesn't take much).
1. All my trades today I followed what I have in mind for the basis of a trading plan. Still have a way to go but if I had been more patient and used LSH's for exits it would have looked different. Now I realize that's a CWS, but I'm aware of that and am in the process of backtesting exits.
2. After the cluster of trades taken in the middle of the TR, a light bulb went on and said Boru get your ass out of the value area , my next trade, # 4 was as close to the edge as I saw at the time. I realize some people in chat were trading REVs at the time, but I am not .
1. Premarket saw a short at 8:26, exited at the LSL at 75, and because price made a HL.
2. price trades up to 83.75 breaks DL, and I entered at what I thought was below the crest of the wave, but the bar bar closed so fast it wasn't a RET . Price did drop tho, all the way back to 75, where it jumped straight up, stopping me out
3. Price didn't make a HH so after a RET I shorted at 78 ,turned out to be the low, should have scratched sooner.
4. Buyers push price up to 86.75 and can't hold it there Breaking a DL and forming a RET which promptly reversed , remembering the earlier trade I scratched sooner. The wide swings and long bars were a little unnerving too. I stopped trading at this point.
While today was disappointing there were a few things that spark hope (Thank God it doesn't take much).
1. All my trades today I followed what I have in mind for the basis of a trading plan. Still have a way to go but if I had been more patient and used LSH's for exits it would have looked different. Now I realize that's a CWS, but I'm aware of that and am in the process of backtesting exits.
2. After the cluster of trades taken in the middle of the TR, a light bulb went on and said Boru get your ass out of the value area , my next trade, # 4 was as close to the edge as I saw at the time. I realize some people in chat were trading REVs at the time, but I am not .
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I have had this sort of a day a number of times as well. My conclusion is that one has to balance risk with potential. As you stated, the quality of the action meant too much risk would be taken for the third and fourth shorts. So there are certain larger conditions that will either green or red light the decision to participate. Looking forward to your progress.