This journal is temporary because it will document my experience in the Top Step Trader 20 Day Combine. I've done the combine before without success, but am feeling confident that I can succeed this time around.
Why am I doing the Combine? The short answer is because I am under funded, but I want to trade. I also have a day job that I hate with a passion. The longer story is this. I've been trying to trade the markets for a long time. I've done it exactly how many new traders do it. I follow the so called experts. My mind set was that if I had the same indicators that they have I can be as successful as they are. If it didn't work out I went on to the next great thing that I saw. That surely will be the thing that gets me to the other side. Nope.
I think I know myself pretty well and I believe that I am not wired in the right manner to be a trader. That makes it very difficult to succeed. Add in loss after loss after loss and one account after another, if your psychology wasn't out of wake to begin with, it certainly will be after all that. I'm really not sure that I will ever be wired right. My hope is that by having this journal it will help me to improve the wiring and succeed in the combine.
When I cam to nexusfi.com (formerly BMT) I finally realized success has has nothing to do with experts, indicators, software, or method. This is one of the first thing I read by Mike on the site. I also felt that I needed to learn to use no indicators, or as few as possible. Another thing that Mike said that hit home for me. You can not succeed with its all green or its all red.
In the process of figuring out how I would learn to trade without indicators I came across Gary Dayton's chart reading mastery course. I liked the sound of that. Chart reading Mastery. The tag line to that was "Trading the market by its own actions". Anyway, this is not a commercial for Gary's course. I'm just saying this is how I was introduced to Wyckoff and trading based on what the chart is saying. I took his course two years ago and then again 6 months ago.
Normally in Journals people describe their method and their setups as well as the chart set up. So I will provide an overview.
My method is based on the chart reading class that Gary teaches. He teaches Wyckoff principles, but I wouldn't say that it is text book and I think he would agree. The point is to try determine weakness or strength and trade with that. I may use terms like Shortening of the Thrust (SOT), Spring, Uptrust as well as others that are part of the Wyckoff vocabulary. If at any time you want clarification just ask.
My charts are tick and time based and the TF varies on the instrument. In the combine I've decided to trade the NQ and or CL. I have HLC (high, Low, close) bars on the chart. An indicator called the Weis Wave which is volume depicted in a different manner. I don't consider volume to be an indicator like one would consider a MACD or stochastic. I also have the 3-10 Oscillator on the chart. It works best in trending conditions and I am still trying to decide if i want to keep it on the chart or not. I have it because Gary Dayton did an extensive webinar on its use and for now I just keep it. It can be of value, but I will take trade against what it is reading.
I will post charts, but the trades will not appear because in the Combine I need to use their DOM to trade. If I am able to take the trade in my account at the same time then It will show.
Combine Rules:
My combine account is simulation. It is $50,000. The daily loss limit is $1000. One is not supposed to hit that limit and I intend to not hit it. I can trade up to 5 contracts. At the end of 20 days the profit achieved should be $5000 or more. Basically $250 a day on avg. My avg winner should be larger than my avg loser. My time duration in a trade should be longer for winners than losers and I'm not sure, but think I need to have a certain % win rate, but don't recall right now.