I'm here to post my actual closed trades in order to share my style and for my own accountability.
Brief description:
1. Mostly the system is developed upon the books of Elder, as I found his approach simple as shit and at the same time very powerful.
2. Who read Elder's books know that his approach is mostly against the main trend with his beloved regular divergence. He trades three setups: pullback to value, fading an extreme, false breakout with a divergence. At the stage today as a trader, I trade only pullbacks to value (trend-following).
3. This one setup (pullback to value) has 7 different timing models (which I discovered by myself).
4. The system is very rigid and at the same time very flexible, can be traded during bullish and bearish markets.
My daily routine:
1. Every day once the market is closed, I screen for my setup with different timing models across all available stocks in order to understand if the market is bullish or bearish. Write down in the table number of stocks with the tot. Bullish and bearish setups. That gives me an understanding of whether is the market is prone to diverge from bullish to bearish and vice versa. For example: as the actual date I have 1390 long setups and 294 short setups (82.54% bull/17.46% bear), a clear strong bull market and I take trades only in that direction.
2. Every day before the actual work begins. 1h before the market close I track my psychological state in another table, which gives me an understanding of whether I can open the terminal or not. Once I have a positive value, I open my scanner and tables with the hold/ready lists and I'm ready to begin the actual work.
3. Screening phase is a very boring step. I can trade OTC stocks or super big-cap stocks. But I like to trade only the most popular ones. I began my work at 9 pm (1h before the close) I just flip through the charts that my scanner gives me with different timing models and timeframes 4h+1D and if this it (that is why I like this system, pre-template parameters are rigid but when the time comes to the selection I apply discretion based on how good it looks), I write down this particular stock in hold/ready table (once it's in the ready list, it can be executed).
4. Journaling phase: Once the market is closed, I began the journaling phase and past trades review.
Done.
Risks:
Close position 1 day before earnings
risk per trade=1%
Max open risk in the market = 6 %. (6 deals)
Drawdown 6% from balance top = completely forget about trading for at least 1 week and until you have a clear head/recovered psychologically from the loss.
Max duration of the deal in negative zone = 3 days
Max duration of the deal in positive zone = 30 days
Stops&Takes
The stop is based on at least 1 atr value if trading 4h timeframe, on daily that value can be shrunk.
Takes are 2atr+ value and risk/reward must be 2R+. But for more stable and faster returns and compounding, I think it should always stay in the range of 2-3R.
Winrate:
Maintain ~50% win rate and you will gain your fucking million.
In that style, I work 10 hours per week and that's almost stress-free. Screening and selection 1h and Journaling phase 1h per business day. I don't work on weekends as I did everything during business days.
Fundamentals?
Still working on this part of trading.