Rules-Based Trading: quotes and resources

I'm currently in the process of spending more time reviewing trades than trading. This week was spent reviewing some of what I've learned the last few years and I was surprised at the lessons I'd "learned" yet I am still working on. So, decided to google search for an article that would help to cement in my mind that I need to make reviewing both recent trades and things from a while a go a regular part of my routine.

This is a helpful article that came up from the google search:
https://2ndskiesforex.com/forex-strategies/reviewing-trades-2-crucial-tips/
 
Apply 2 well known rules to all the posts here and recommendations It ain't complicated:

First rule: Occam's Razor
Second rule: Have an Edge. (Well defined and tested as provided by "Trading in the Zone" by Mark Douglas

Automate if you are one that cannot keep their hands off the chart and changes the Targets and Stops during the trade. (Free software that brokers supply)

Happy to show anyone that is serious -- not selling or wanting any form of payment.
 
I'm going through "Trading in the Zone" by Mark Douglas. Just came across something that I need to focus on mastering.

"In other words, the risks inherent in trading do not cause the best traders to lose their discipline, focus, or sense of confidence."

 
Thought this was good. I like the idea he gives to right down your target on a piece of paper as a way to keep focused and stay in the trade.

He also said to visualize the target. I'm not so sure I will be helped by visualizing the target because I can easily visualize a bad trade eventually working and not get out when I should, or visualize a good trade going even farther but then it turns around and comes back. :D That's probably not what he meant though. I'm sure he meant something more along the lines of understanding what is going on in the chart and basing the target on that.

 
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This post isn't a quote. It's just me writing out my thoughts.

Sometimes I go over the charts at the end of the day and mark where my plan says I should have entered and exited trades. After marking them, I make visible the trades I took. As of today, I plan to take screenshots at the end of each day of these ideal vs actual trades and stick them in a folder. Going through the folder occasionally should be an easy way to see if I'm sticking with my plan or consistently making the same mistakes.

Why write this here? Because if I write it out, then I have to follow through on it. :) And maybe someone else will also find it useful.
 
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studentofthemarkets said:
Going through the folder occasionally should be an easy way to see if I'm sticking with my plan or consistently making the same mistakes.

Why write this here? Because if I write it out, then I have to follow through on it. :) And maybe someone else will also find it useful.
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I have to assume you have a written plan.

Then when you close each trade you check and see if you followed the plan.

It's a yes or no answer. The fun part is trying to figure out why.
 
deaddog said:
I have to assume you have a written plan.

Then when you close each trade you check and see if you followed the plan.

It's a yes or no answer. The fun part is trying to figure out why.
More...
I don't know why I stopped using a checklist. I used to use them. OK, I wrote up a new checklist for my trades and will trade nothing but those trades moving forward. I have a plan, but it's so detailed that I don't often refer to it. I know my set ups, but I should be very methodical about checking to make sure the trade is following it.

The screenshots help in a different way. I can see if I timed the entry right with what price action was doing and if being a little earlier or later would have had a better outcome. Even if everything on the checklist is checked off, there is something about a picture of the trade that can show if what I thought I saw happening was really what was happening and if the trade worked as expected.

It's a yes or no answer?? Maybe I have been too vague with my set up criteria. Ok, my newest checklist has a place for yes or no for several factors.

Thanks for reminding me about the importance of using a checklist!!
 
studentofthemarkets said:
I have a plan, but it's so detailed that I don't often refer to it. I know my set ups, but I should be very methodical about checking to make sure the trade is following it.
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For me the plan is a stress reducer. The more detailed the better. All it has to do is answer the question "What do I do now?"

It's an If/Then criteria. If this happens then I will do that.

I like to think of it as an operators manual. In theory I should be able to give it to anyone and they should be able to trade my system.
 
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