What better start to the New Year than to take Earn2Trade's Gauntlet evaluation program which I received as an award from Big Mike as the 1st place recipient of the recently concluded FIO Journal Challenge, November 2018 Edison. Hence, I am starting a new trading journal here to document my progress with the Gauntlet program and maybe even get funded at the conclusion of the 60-day evaluation period. :)
The trading methodology I will be using here would be the set-up I illustrated in the FIO Journal Challenge contest with minor changes to adapt to the Gauntlet rules.
Summary: The focus of this journal is to trade the Volume Profile Trend Accumulation set-up I have adapted from concepts I derived from Trader Dales book and his Volume Profile webinar with the objective of getting funded by the end of this 60-day evaluation program.
Note: The set-up, charts, and time-frame that I use here are modifications of Trader Dales concepts but does NOT duplicate his trading style/methodology in its entirety, merely conceptually. Hope that makes sense.
References:
Trader Dale webinar:
Trader Dale book:
Gauntlet Start Date: 01/03/2019
Gauntlet End Date : 03/03/2019
Instruments to Trade: GC & HG (CL was dropped due to the rather large stop loss requirement)
Platform: NT8 (NT7 used for backtesting exercise & daily review)
Indicators used:
NT8 Order Flow Volume Profile Tool (or comparable indicator such as Ninza.co flexible market profile tool)
NT8 Order Flow Volume Profile
ParabolicSAR: used to trail runners
Trade Set-Up in a nutshell:
Identify/detect trend following trend requirements listed below
Create volume profile (VP) for the trend using flexible market profile tool.
Note Point of Control (POC) level & validate:
POC level must be a pullback level that exceeds 32% of the total volume profile height.
Enter limit order at the POC level, front load by 1-tick, expecting a pullback to that level
Up Trend: Enter Long
Down Trend: Enter Short
If new HH or LL is formed, extend volume profile range to new HH/LL point. Adjust trade entry accordingly if POC level changes due to new range, checking new POC level for validity.
Note: If a POC level has been penetrated or whenever price comes close to within 4 ticks, the level should be considered 'spent' or 'used', hence no longer valid.
New Trade Parameters: Revised slightly based on updated backtest results.
Money Management Rules:
Maximum Daily Loss Limit: $380
Maximum Account Drawdown: $2,500 / 10% of initial $25,000 (Gauntlet Rule)