Brisbane Australia
Experience: Intermediate
Platform: Ninjatrader
Trading: SPI and Emini futures
Posts: 11 since Nov 2012
Thanks Given: 10
Thanks Received: 8
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Hi all.
New to this game but not to trading stocks. Considering that my bent is to technical trading I thought that I would trade specific commodities and Forex. I have noted how important it is to keep a plan and a journal. No performance measure can be monitored if the plan is not written down. What I intend to do is to document my approach in developing the plan and also the trading journal on this site for all to witness if they wish. However, I am the principal beneficiary.
Overall principle: Keep it simple
Key behaviours: patience and calm
Accountability; document and keep a journal
Day 1
Instruments
Only trade a limited number of instruments, three to be precise
1. DAX - although this is big and volatile
2. SPI - I live in Australia so this is a given but less volatile than the DAX
3. Euro/US currency pair - mini
I would like to trade the US minis but unfortunately I need sleep.
Method
Trend trading only - no counter trend
1. Identify the commencement of a trend
2. Entry Signal - Need to identify but looking at Keltner channels
3. Exit Signal - Need to identify but looking at Keltner channels
4. Identify whipsaw pattern
I will also use the techniques offered by Dunnigan, the AHG material by Anek and others in attempting to capture a trend and pyramid if possible.
Money Management
1. 1% risk - do not carry losses.
2. If stopped out make another attempt at entry with a smaller stop - makes the total risk 2%
3. Attempt to capture a win loss ratio of 1.2/1
4. Use Kelly formula later but not at the start
The biggest danger is this strategy is the whipsaw - anyway let's see how it goes. The way I intend to manage this is by using a multiple timeframe for trend identification. If there is anyone with strategies to identify trends I would be grateful for advice.
Avant
This is my first post and I will keep posting as I manage the strategy.
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