irish pete ag06 said:
irish pete ag06 said:
So I decided to start trading 1 setup and 1 setup alone and logging my trades. I love to share with yal (obviously), even if it's bad.
Looking at 20 trading day batches, so 4 weeks. (1-3 trades per day... 3 will be a rarity)
I'm only trading an 8/21 EMA cross. I will look to enter with a limit order on the 21 EMA in the options chart or on the equities chart.
Stop is set based on S/R and/or an ema cross back against my position.
$300 risk on options, $1000 risk on equities or leveraged ETFs
I set 2 targets based on S/R and based on timeframe (meaning target 1 & 2 will be much closer to entry on 3 minute chart vs entry on a 1 hour or daily chart)
(see I do know what S/R means Prog, LOL)
Off to a decent start so far (only on day 2)
So I posted an update to this last Friday... Weirdly, I can see that post under my profile, but it has disappeared from this thread, so here's a screenshot of that:
Update from today
I'm on trade 13 using the 8/21 EMAs exclusively. The record is 9 wins to 5 losses with average win being 13% and average loss being 7%.
I've missed some HUGE win trades because of work, but I'm happy with this sytems results so far.
Only changes I made were some "continuation trades" where I bought a dip on a 21 EMA re-touch on a trend up day. Got tired of buying "puts" on trend up days.
Some of these trades were made on very busy days, so I wasn't able to update the chart on the far right showing the EMAs. I really want to make a pine script editor that will instantly show the 8/21 EMA situation of the week, day, 4 hour and hour in the top right of Tradingview, so if anyone knows how to use Pinescript and can point me in that direction, let me know.
10-6 with average win being 14% and average loss being 8%
13 of 16 trades have been against the trend... which naturally occurs a lot when you are trading EMA flips. Trend is up and all 13 "flip" trades were puts these last 2 weeks.
For my own personal record keeping, I'm going to separate these 2 trades in my spreadsheet.
The continuation trades are better made on longer time frames (10/15/30) and are essentially "buying the dip" on the trend. For these I've waited to enter on the 8 or 21 EMA re-test and use supply/resistance or the other MAs as a stop loss depending on the setup.
Overall. What this exercise has done has forced me to trade like a robot. There is defined risk on every trade. I've stuck to it. I've traded a similar risk amount every time. They have all been "my trades." Not a single follow trade.
It's funny because I started this 2 weeks ago and and I was about 40% of the way through "Trading in the Zone." I finished that book this week. His last chapter is about a trading exercise that trains you to trade objectively. The program is exactly what I started doing on my own 2 weeks ago before I had even read that chapter. It felt pretty cool to do organically what Mark Douglas was about to tell me to do.