I've been studying Bob Volman's Forex Price Action Scalping for several months. So now it's time to get some accountability for actually taking action on this method. I plan to trade in simulation until I'm showing consistent profitability.
My initial goals for starting a Journal are as follows:
Actual screen time between 0700-0900
Take trades, not just think about it
Continually ask the question: "Is there a valid setup forming on this chart?"
Post daily chart in the evening with these goals, plus:
Did each trade line up with Favorable Trading Conditions?
Did each trade follow the strategy correctly?
Did I manage the trade using the Tipping Point strategy?
Number of pips captured
Volman makes a big thing of only entering when there are Favorable Trading Conditions. I'm defining these as:
No Round Number Blockages
No Price Clusters - bars showing S/R that might block the free movement of price to my Profit Target.
I'm not sure how the attached chart will come out. But I missed the trade just before I opened this chart for two reasons. The first was that it was already underway. The second is all the price action to the left of it that price would have had to crawl through. I didn't even see the Double Doji trade until afterwards. The smaller box is a Block Break that I didn't label. I waited until it had crossed that particular support line as it looked fairly substantial. It had room below it to make the required 10 pips but I got out with a +1 based on the support of my entrance.
Feel free to comment. I'll answer any questions that I can with what I know at this point!
Succeeded in all the goals for the day. Easier chart to trade. I could have gotten in and out better by one pip on the first trade. Didn't recognize the 2nd trade as an ARB until afterwards. This is how Volman trading should happen. Third trade was too hurried and I didn't look for Pre-Breakout Tension in the form of dojis plastered against the top of the box or a Squeeze between the 20 EMA and the top of the box. Shouldn't have taken it. +2 pips for the day. 1/3 trades profitable.
Wednesday was an interesting day. I hadn't seen a trend unfold in a 70 tick chart before. Lots of sideways action but no trends. I saw the first trade but was unsure of taking it because of all the congestion below it. Volman calls it Unfavorable Trading Conditions. However, because of the bounce off the 00 Round Number I now think that I should have taken this trade.
Thursday I didn't trade at all.
Friday I got distracted. I had seen that there was going to be a jobs report at 0830. So I expected some volatility. When the report came out there was an immediate big drop. I started wondering if I could have gotten in on that drop. So I went back to Wednesday's chart to see if I could have traded both drops. Then I realized that playing the news is not part of Volman's approach. By that time I was no longer focused on trading but on doing research. This is one of my biggest problems - staying focused on trading.
Goals evaluation for Friday. I did manage my screen time but neither took trades nor did I keep asking the question, Is there a valid setup forming on this chart?"
Primary goal for next week: Staying focused on trading by asking the question: Is there a valid setup forming on this chart?"
I put in my time today, stayed focused and asked What Would a Valid Setup Look Like? However, the market was slow this morning. Given the weak momentum I should have waited for stronger, clearer setups. There's a balance between passivity and overeagerness that I'm still looking for.
The following user says Thank You to crabtree for this post: