P&L for the month: 1786.86, so couldnít reach the 3000 target.
I just asked myself the question, how could it be better, and I found out the followings:
My intention was trading with maximum 5 contracts, but I always traded with 5 contracts. The reason was I believed in the Ąmaths ruleĒ, that a trader should always risk the same amount of money, so one loser doesnít wipe out multiple wins.
Iím starting to believe I shouldnít follow this rule, because it doesnít take the probability in account.
The problem was I aimed with full 5 contracts to not-so-good setups, I didnít feel the ĄvibeĒ with these, but obeyed the maths rule.
This month Iíll try the following: basic amount is 2 contracts, and if my heart beats faster on a setup, Iíll go with 5.
The next problem the max daily loss. I probably could make it, if I didnít blow up several daysí gain in one single day, trying to Ąwin backĒ from the market. So from now on, the max daily loss is 300 USD, then I stop trading, no matter what. If I see that Iím approaching the loss limit, I will reduce size to even one contract, and if the calculated loss doesnít fit in the budget, I donít take it.
The third is the types of trades. I aimed for the same setup whole month: ideally streched up, with volume imbalance, decreasing delta. These kind of trades are rare, so most of the time I felt frustrated, I wanted to trade something.
From now on, I aim for:
- streched up, with volume imbalance, decreasing delta. 5 c stop, 10c or 20c target
- scalp around big lots on bid/ask side: 5c stop, 5c or 10c target
- breakouts/breakdowns: 5c trailig stop, 10c or 20c target
- longer timeframe trade, if the setup looks good. R/R: 1:2
I know, itís not objective at all, - reflecting to @matevisky ís latest post - itís not a trading system, so itís hard to review. But my problem with exact rules, and exact systems that I think they are rigid.
A setup meeting all the rules can be a loser, and trades out of every rule can be a winner Ė as I found out long time ago thereís no holy grail. Right, @matevisky?
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At last! Yesterday, at the end of the day, the bears did a great job, which continued overnight as well. Overall, from 80 the price dropped to 75.84!
Iím still bearish, but this was a huge drop, so Iím gonna be cautious, watching the bulls. Today I think thereís gonna be a correction Ė or the free fall begins if the bears are still strongÖ
Instead correction or freefall, the end-ofĖthe-day candle was a directionless one: the bears won the first half of the day, then the bulls entered, and drove back the price to the open.
The price stayed within the last 4 zones all the day.
How the predefined zones played out:
(From now on, Iíll show this in 333tk, which I mainly use, instead of the 5-min chart.)
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Yesterday showed that the bears maybe ran out of steam, the bulls bushed back the price. The same scenario happened overnight.
Watching the daily chart, the correction I waited for yesterday, might happen today, if the bulls will like the 10.30 crude inventories report.
Greed and fear, the traderís company. For me, fear striked. I have no idea, whatís happened in my mind recently, but I had some kind of traderís block. Yesterday was full of possibilities, today the first two hours also, but I just couldnít pull the trigger.
However, I tried to do something about it, and very cautiously, I chose three trades today:
Sell 2 @ 77.49
Buy 2 @ 77.52
P&L w. commissions: -69.24
After a strech, the price stopped above .50. I felt itís gonna break down Ė or maybe I just wanted to shake off the fear from my trigger finger Ė so I aimed for 10c with 5c stop. After a couple of ticks I saw itís jammed, so tried to scratch, but I had some slippage. Happens.
Buy 2 @ 77.66
Sell 2 @ 77.76
P&L w. commissions: 190.76 Breakout trade. It was a strange one, since it wasnít on top or bottom of something, but I entered in the middle of the wave. I saw huge buy imbalances on the 333tk candle top. Target reached.
Buy 2 @ 78.02
Sell 2 @ 78.11
P&L w. commissions: 170.76
Breakout trade. Pretty much the same scenario, like in trade 2, but the buy imbalance was exactly on 78.00. For this reason, I thought I should aim for 20c instead of 10c, but I heard an inner voice saying Ądonít be greedyĒ , so aimed for 10c. Glad I did, target reached.
P&L for the day: 292.28
P&L for the month: 292.28
P&L from 09.24: 2344.34
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