CLA - Price Action Journal (SLA)

[lajax]

I want to start this thread in order to keep discipline with the forward testing process (Demo Mode), because I consider that this helps with my formation as a trader.


First is important to mention that all the trading methodology is based on the SLA/AMT of Dbphoenix, so if someone wants to give me feedback about the trades and the method, I would appreciate it.


In First instance this are the parameters of the trading journal:


> The forward testing is going to start from February 18th of 2014 (Market Replay – Ninja trader)

>Trade is going to be from the opening until 12 m

 

[lajax]

February 18th

Daily Context

Premarket - Context

Daily chart.

I didn't take the red dots because they were too close to the middle of the hinge

 

[lajax]

February 19th


Note: I Use Trailing Stop to manage the position

Premarket context (Hourly)

Trades of the day.

The day.

 

[lajax]

February 20th

Daily chart (Premarket)

Hourly Context

Trades of the day.

The day

Results.

 

[wwatson1]

So your making a loss with this method?

 

[Gringo]

Trading CL is a bit tougher in my opinion. NQ and stocks are better. CL gives a lot of zig zaggy motion which makes it difficult to maintain stops due to spikes. I would suggest at least for the learning phase to work on NQ. I had tried this on FX and it was the same issue as the sudden and unexpected spikes were forcing a wider stop causing issues at least for me. I didn't spend too much time on it afterwards. Maybe longer term would be easier.

Another thing to note is to observe price for a bit without regards to entry or exit. You know what needs to be done, just watch. Notice how price moves and what you can do with it. Again I want to emphasize that I am not super trader and this is part-time for me. My signals come at times after a few weeks.

Gringo

 

[wwatson1]

Stops are for ametuters

 

[lajax]

So your making a loss with this method?

You must take into account that with only 3 days of forward testing is not enough time to have a solid statistic base in order to make judgements about a method, moreover I am an "amateur", as you said. So the problem is most likely, to be me rather than the method

 

[lajax]

Trading CL is a bit tougher in my opinion. NQ and stocks are better. CL gives a lot of zig zaggy motion which makes it difficult to maintain stops due to spikes. I would suggest at least for the learning phase to work on NQ. I had tried this on FX and it was the same issue as the sudden and unexpected spikes were forcing a wider stop causing issues at least for me. I didn't spend too much time on it afterwards. Maybe longer term would be easier.

Another thing to note is to observe price for a bit without regards to entry or exit. You know what needs to be done, just watch. Notice how price moves and what you can do with it. Again I want to emphasize that I am not super trader and this is part-time for me. My signals come at times after a few weeks.

Gringo

Thanks Gringo for your feedback, I am going to take into account your advices and try to keep moving forward with my formation as a trader, I hope you can help me with it.

And other issue that I would like to know is why do you prefer to trade with NQ instead of the ES or the Russell, although, I know that they have a high degree of correlation, maybe is for the magnitude of the movements? the characterization of each market?

 

[Gringo]

The reason I'm trading part-time is that I don't want to be involved too much. Trading is a individual endeavor and one has to go through the process to get it. So keep in mind that in all likelihood my input is going to be sparing. I have recently begun to found my own footing and don't know how much energy I have to try to figure things out for other traders. I have my threads where I post already.

You're going ahead with forward testing but have you OBSERVED price for some time without regards to entry/exit signals? Have you observed the difference in price behavior between ES and NQ? It would be better to do that first. How you do things and what you trade is your personal matter. There are many who are profitable traders and trade CL or FX. I am not one of them.

As for NQ or ES, I prefer NQ. One can always use more contracts to increase stake. ES has smaller moves whereas for the same swing NQ has a larger point move. This larger move makes it easier to read the tussle between supply and demand that's the basis for all this SLA method. For learning purposes I just trained on NQ instead of complicating things further. Most illustrations by Db were also in it so I took the easy route.

You seem to understand lines breaks and retracements but it seems you're not in tune with the context. A retracement isn't taking place just about anywhere. Wait for some major S/R or TC top or bottom before you start using the lines for entry. Every wiggle isn't a retracement or a line break. Does CL respect retracements? Just because Db wrote that's how it worked on NQ doesn't mean CL is a vehicle that behaves in a manner conducive for it. In CL retracements might give faulty signals or may take place a few times before price goes in the intended direction. These are the kinds of things you need to keep an eye on if you're to trade CL, or ES, or anything else.

I wish you all the best.

Gringo