The purpose of this is to serve as a closet, or attic, or self-storage facility. A place for me to store what I don't want to lose, all in one place, partly for me, but largely for those who may be interested in what I think about market stuff and trading stuff.
I've reserved the right to moderate comments. Assuming that this works, the point of it is to keep the blog on task as much as possible. Substantive questions will be answered, if I can, but good wishes and so forth will not be posted, not because I don't appreciate them, but because all of that is a lot for newcomers to wade through after a while, so please don't be insulted if you don't see your comment posted.
The first post is a link to a preview of my book. This may be of no interest to you whatsoever, but I do encourage those who are interested to at least look over it before plunking down any money for something that may be of little or no use to them.
Good trading.
I've reserved the right to moderate comments. Assuming that this works, the point of it is to keep the blog on task as much as possible. Substantive questions will be answered, if I can, but good wishes and so forth will not be posted, not because I don't appreciate them, but because all of that is a lot for newcomers to wade through after a while, so please don't be insulted if you don't see your comment posted.
The first post is a link to a preview of my book. This may be of no interest to you whatsoever, but I do encourage those who are interested to at least look over it before plunking down any money for something that may be of little or no use to them.
Good trading.
The Trading Journal: Appendix
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Contributed by "FX_Cowboy".
I'm ready to start backtesting my revised plan, here in the form of a comparative study. The setup used for this exercise is basically the same as the one described previously in this journal, but with the following adjustments:
General Rules
-- Positions may be only opened between 2:00 a.m. and 12:00 noon. Any open positions must be closed at 1:00 p.m.
-- All valid entries must be taken.
-- S/R levels may be adjusted any time before a trade (no fair adjusting levels to invalidate a running trade or to call a trade after the fact, and stops once entered may not be moved back).
-- During backtesting, if the sequence of price movements in a bar is unclear, I'll assume the least advantageous outcome.
Entry and direction
-- Trades are entered after a BO, defined here as any price penetration through a S/R level, followed by a SL/SH above/below that S/R level (entry details specified previously in this journal).
-- After BO, price must return to the S/R level (within a pip) prior to any entry. There will be occasional exceptions to this rule (RET's taken beyond the S/R level), but only at levels specified in advance. (Edit: this is to allow more leeway when price BO through more important levels, and price may not retrace all the way to the S/R level, at least as shown with the time resolution of the chart I'm using. Trade management rules are modified slightly for these trades.)
-- Trade direction is determined by trend direction. If price is in a range, the last trade direction remains in force.
Trade management
For this exercise, three contracts are traded:
- One contract is closed when price has reached the same distance from the entry point as the distance from the stop level to the entry point, or when SO.
- At that point, the stop is moved to the S/R level for the remaining contracts.
- The second contract is closed once price touches the next S/R level, or when SO. If there is no S/R level available during backtesting, I'll use the same distance as between the last two S/R levels. (Edit: at levels specified in advance as major BO levels, the rules for this contract are the same as for the 3rd contract, below.)
- The remaining contract runs until a signal is received in the opposite direction, or when SO.
- If one or both of the first two contracts has been closed, I may open a new trade (on a valid signal, same trade management rules) even if the third is still running.
If past is prologue, other issues will inevitably arise. But this should get me started. (FX_Cowboy)
Contributed by "FX_Cowboy".
I'm ready to start backtesting my revised plan, here in the form of a comparative study. The setup used for this exercise is basically the same as the one described previously in this journal, but with the following adjustments:
General Rules
-- Positions may be only opened between 2:00 a.m. and 12:00 noon. Any open positions must be closed at 1:00 p.m.
-- All valid entries must be taken.
-- S/R levels may be adjusted any time before a trade (no fair adjusting levels to invalidate a running trade or to call a trade after the fact, and stops once entered may not be moved back).
-- During backtesting, if the sequence of price movements in a bar is unclear, I'll assume the least advantageous outcome.
Entry and direction
-- Trades are entered after a BO, defined here as any price penetration through a S/R level, followed by a SL/SH above/below that S/R level (entry details specified previously in this journal).
-- After BO, price must return to the S/R level (within a pip) prior to any entry. There will be occasional exceptions to this rule (RET's taken beyond the S/R level), but only at levels specified in advance. (Edit: this is to allow more leeway when price BO through more important levels, and price may not retrace all the way to the S/R level, at least as shown with the time resolution of the chart I'm using. Trade management rules are modified slightly for these trades.)
-- Trade direction is determined by trend direction. If price is in a range, the last trade direction remains in force.
Trade management
For this exercise, three contracts are traded:
- One contract is closed when price has reached the same distance from the entry point as the distance from the stop level to the entry point, or when SO.
- At that point, the stop is moved to the S/R level for the remaining contracts.
- The second contract is closed once price touches the next S/R level, or when SO. If there is no S/R level available during backtesting, I'll use the same distance as between the last two S/R levels. (Edit: at levels specified in advance as major BO levels, the rules for this contract are the same as for the 3rd contract, below.)
- The remaining contract runs until a signal is received in the opposite direction, or when SO.
- If one or both of the first two contracts has been closed, I may open a new trade (on a valid signal, same trade management rules) even if the third is still running.
If past is prologue, other issues will inevitably arise. But this should get me started. (FX_Cowboy)
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Recent Blog Entries by DbPhoenix
- Seven Habits of Ineffective Traders (05-13-2008)
- The Trading Log: Appendix (04-29-2008)
- The Trading Journal: Appendix (04-29-2008)
- The Trading Journal: Appendix (04-29-2008)
- Wyckoff the Great (04-26-2008)
