Firstly I would like to say a big thanks to the members of this site. Fat tails, Silvester, Bloom and Big Mike for creating this space to engage with other traders. I have appreciated your help with indicators, posts and insights.
That being said I will journal and contribute as well - not that Im as pro as alot of people but some may find value in what I write.
Some background information.
I'm in Australia and spent a lot of time looking at the SPI200. I looked at price and order flow/tape reading. Now I am looking at the DAX because it suits my job hours and moves alot more that the SPI.
I work with a friend to help me now
Over a period of time I realised that I am an impulsive person and this can hurt my trading results. It is also a strength and I don't want to change who I am. What I was finding however is that I loved trading - and when I did well I did really well HOWEVER sooner or later the impulse/emotion would kick in and and it blinded my trading logic.
What did I do? I found a friend and we created a team. Heres our roles
1. I read the charts and order flow and time entries
2. My friend is responsible for position size, entry execution and profit protection/exits. Even if I believe things may run he can take a profit.
What has been achieved so far?
I heard is once said that if you are trading trying to capture 1 point moves 10 times in a row is a good measure of progress and ability to trade very short time frames using order flow/tape reading.
After another loss trying to capture a big move (we often have a small/medium profit) that then becomes a loss we changed our goal - 10 1point trades. Lets see if we can do that. We are using a CFD account, 2K but very small position sizes to practice with $2-$4). We increase position size if using profits on the night but more on that later.
The next night we had 24 trades
22 1 point wins
1 Break even scratct
1 loss
It was exciting. The next night we had the following results
9 trades
6 1 point profits
3 losses - stop loss
Now we are up to talking about risk, reward and stop losses. The dax moves nicely and we find a stop loss that is to tight will shake us out. BUT if we have a night where we have 6 wins and 3 losses its a loosing equity night.
Tomorrow night its time to use the calculator from
To talk about risk and reward.
What we are doing is breakeven to small loss - now we need to tweak the system. Part of it may include 3 positions (1 point profit, 4 point profit, and one to run and bring in the gravy when the big runs happen (or hit a trailing SL).
To be talked about later
Point and Figure charts
Keltner Channels
Order flow/tape reading - DOM and Time and sales.
Volume