This is going to be my last attempt at this madness! I started a journal in 2006 without success (http://www.elitetrader.com/vb/showthread.php?s=&threadid=62958&perpage=6&pagenumber=1), I took a break of more than three years before coming back to the markets, but still not profitable. I lack discipline, and I don't seem to find a cure for that. At least this time I know I can read the markets very well, and I know the weaknesses I have to solve:
- Not overtrading. Limit to 5 trades a day.
- Get good sleep.
- No trades between 12-1pm.
- When profitable in the morning, no trading in the afternoon (if I respected this rule alone I would have been ahead big time).
- Staying in the trade until a reversal or descent profit of at lest twice the risk.
- The most serious of the most serious ones, stop for at least 30mns after a stop loss. This is my top one problem; I end red every time I have a loser. I don't wait for another setup, I invent them myself ;-).
I'm not going to give specifics about my strategy. All I can say, is I buy/short pull backs.
I use 2/5/15/hourly and 4 hours (the king of all time frames). I take my trades using 2 and 5 minutes charts. the 15/60/4 hours are for direction and resistance only. I don't use any indicators whatsoever, just price action. So help me god!
You can use my strategy and i will post live trade calls on cl redux and gc redux. I use limit orders so you can see 1st hand how my strategy works.
I have to be trading with the trend, i avoid the big round #(100). I look for a breakout above major resistance or below major support. Than a swing high/low has to be indicated. After that i wait for price to pullback and test my slope trigger. After its tested i put a buy/sell stop 3 ticks above/below my swing high/low. Than im looking for momentum to be curling up from oversold or pointing down from overbought. Than increasing speed is my last concern i need to see big buyers/seller to confirm my entry using my pace of tape. I choose 1 to 1 tick ratio to avoid emotional trade management. I do get filled on my targets or on my stops very fast which is a good thing since the longer your in the markets the more risk you partake in. I would say this strategy took 20 years to create. It does look real simple but a big issue is emotions they can make simple rules such as these seem impossible to follow. If you have any question feel free to ask
