Ok, so my goals for May were pretty restrictive, which meant there wasn’t a lot of action (as you’ll see from the scribble on the chart below).
That said, it was a promising month nevertheless. With my goals effectively met (maximum 4 trades, trade my own system, trade lowest risk) I was please with the end result as it was the change in direction I needed after a poor April.
To hear how it played out in detail, listen to the episode here:
And to get the trade by trade analysis, keep reading below or click on the chart…
Above you’ll see the chart I was talking about. I’ll break each trade down so you can understand what happened (plus, because there are only 3 trades it makes it pretty easy).
- This was based on my friends system. I entered a little too early and ended up existing after a small profit when I came out of a small draw down. Had I kept the trade alive I would have made my profit target in the next 10 minutes, but the phrase Norman Hallett had kept me sane: “I’d rather be out of a trade wishing I was in than in a trade wishing I was out”. Try this out for yourself, it’s great!
- On top of this, the trade earned an overnight dividend which doubled the value of the trade (bonus!)
- Well, this was based on the Swap EA strategy I built (which didn’t lose a trade in 2014 back testing). I’m running the EA based on Serge Berger’s Hammer candle stick suggestion and a bit of my own magic juice. It seems to be working well so far, although you’ll get a few pending orders that are cancelled before the trades start coming (you can see these in the Statement)
- This trade is a little bit deceiving. Although it’s the 3rd trade of the month. It’s actually the same trade as Trade 2; but it’s the second part of the scaled exit that targets 30 pips. Because I also have the trailing stop following this up, these trades often get stopped out in profit (which is a good thing… to a point). Where it falls short is when you hit losses as they aren’t scaled and will often wipe out all of your profit. Hence why I’m looking for a strategy that can provide a 1:2 risk reward ratio. Swap EA can actually do this (and be profitable when the right settings are in place, but I’m not running these setting at the moment)
Trading goals for June 2015
Note, not all of these are related to actually placing trades, but I’m on a journey and these are the necessary steps at this point:
- Continue live trading the Swap EA on S&P, Gold and EURUSD (on low risk settings)
- Finish my price action based trading system
- Build multiple time frame analysis into the strategy to determine the trend I should follow
- Learn more about Elliot Wave as per Nicola Delic’s success