Good to see you journaling again, looking forward to your posts.
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The following user says Thank You to Big Mike for this post:
Thats a good well defined set of entry rules there. I know you are focussing on entries but do you have an early idea of your exit strategy. It might be useful to set up an initial ATM and see how it goes during simming, just to get a bit of a feel for how you might like to manage your trades.
Hope this week goes well for your new plan.
The following user says Thank You to Linds for this post:
I set up a simple ATM on TOS today: 20-tick PT and 15-tick stop. I don't let all the trades run the full course. If something goes awry I try to get out. Other times I'm a deer in headlights. Anyway today was just about the mechanics of trading on TOS.
I'm no longer using the SMA-50 as a condition. I will continue to leave it on the chart and consider it an indication of high probability. However, it is delaying my entry into the trade. I don't know if this will turn out to be a good idea or not but I will see.
It's unfortunate that I can't edit my post from yesterday to reflect my trading methodology changes today. Now I understand the reason that Perry's methodology was not updated and kept current in the initial posts summarizing the methodology once it evolved. Live and learn.
Other changes are reflected here.
SMA (8) crosses up above SMA (21).
Instead of a minimum of one Green 5-minute candlestick required for confirmation with a bigger body than the preceding red candle, I will try to enter on the first green candle. This may also help my entries. It is an aspiration not a requirement. Second green candle will be fine too.
Entry candle must be Green. This is critical. I forgot how important this rule is. If I'm long, no entries on red candles and vice versa.
Stochs are pointing up.
Entry: Limit Long on SMA (8)
Exit: First red candle if PT does not hit first. Today I followed this rule and at other times didn't. It is a function of price action too.
Variation: Despite size or color of preceding candle, if a MONSTER sized green candle crosses and closes above cross of SMA (8) above (21), look for entry.
SMA (8) crosses below SMA (21). Minimum of one Red 5-minute candle required for confirmation with a bigger body than the preceding green candle
Entry candle must be Red.
Stochs are pointing down.
Exit: First green candle if trigger not hit first unless price action says otherwise.
Variation: Despite size or color of preceding candle, a MONSTER size red candle crosses and closes below cross of SMA (8) above (21) then look for entry.
Method 2 Retracement
SMA (8) above SMA (21) above SMA (50) and red candlestick tail retraces to and touches SMA (50) ore even nearly touches 50, wait for the next green candle to close and place limit order on SMA (21). I'm thinking of not even waiting for the single green candle to confirm. That red may be the place to enter as it retraces. It worked today.
Instead of the candle tail retracing and touching or nearly touching the SMA (50), the BODY of the candle touches or even overshoots the 50, after waiting for same single green candle as confirmation, the entry may be on the SMA (50) instead of the SMA (21). Same thing: may not need to wait for the green candle confirmation to enter.
SMA (8) below SMA (21) below SMA (50) and green candlestick tail retraces to and touches SMA (50) ore even nearly touches 50.
Instead of the candle tail retracing and touching or nearly touching the SMA (50), the BODY of the candle touches or even overshoots the 50, entry may be on the SMA (50) instead of the SMA (21).
Last night and today I acclimated myself to TOS. This evening I began taking trades that I will count beginning tomorrow, the first day of the month. My new trading day will begin at 4:30 p.m. each day. Taking a couple of successful trades before I go to sleep will reduce pressure for me on the following trading day.
One thing I need to remember. I'm here to gradually improve. I can't beat myself up if I'm not an instant overnight success. In the last 24 hours I can see marked improvement. I don't know why I delayed this endeavor of sim trading as much as I have. I think I was scared to see and confront myself. But as long as I use stops it will be so much less painful than not using them.
The following user says Thank You to plethora for this post: