Month 2, Day 30 - 36-month forex trading challenge - fine-tuning the daily trend.
Well we're now at day 30 of the 36-month forex trading challenge, which also corresponds to the end of week 6.
This is the last day I'll be trading aboard P&O's Britannia cruise ship. It's been a great couple of weeks and I've been surprised how good the Internet signal has been, albeit we are out somewhere in the middle of the ocean.
The getting up early each morning is getting easier and I now don't really need my alarm clock. Again I'm pretty much alone in the Horizon buffet with coffee on tap and a view of the sea. While others sleep, I can't think of a better way to start the day.
Last night I put on a trade in NZDCAD (T28S) using my FULL HOUSE strategy. I missed the signal at 6pm while at dinner, so got in at a slightly worse price than I would have done had I sold on the candle close.
Normally I would never chase a position in this way, but the technical set up looked so good, I felt the additional cost of a late entry was worth it. Yes, this goes against my rules, which state that I can only get in at the same or a more advantageous price than the entry signal. I'm torn between the thought that I've used discretion to take what could be an excellent trade vs. the feeling that I've once again broken my rules, and what the hell am I doing!
Only time will tell.
This is the first trade I've executed that uses a slightly refined trend line on the daily chart. The daily chart sets the market mode for all of my trading activity. The market mode is either BULLISH, BEARISH or in RANGE, and I'm only permitted to take entries in the direction of the market mode.
I've observed that I've taken a number of entries recently on the wrong side of the trend line. For example in AUDUSD (T21S), I added to my position on the second YX signal, but this closed at the bottom of the daily range. What followed is a retracement, which hurt this position from the off. I'm now carrying a profit on position 1, which as things currently stand has been offset by the current loss on position 2.
I've now introduced a centre line between the extremes of my daily trend line. I've fine-tuned my approach to now only take short positions if the entry signal falls above this line (for long positions the signal will need to be below). This means that I would never have taken this trade, and if anything would have entered on the Z candle that showed up above the centre line, five candles after my entry.
Although drawing a trend line is never an exact science, I'm confident that this additional filter on my trade selection will make my assessment of market conditions in any given currency pair more systematic, and less prone to human error.
My AUDUSD short has retraced extensively, but only now am I potentially seeing a signal to lighten up on my position. News out of Australia overnight saw a spike, but the 50 SMA is still holding, and with trade disputes ongoing between the USA and China, in addition to poor economic data out of the country in recent months, I think this pair has further to fall. While I don't trade on fundamentals, it always helps when they point in the same direction as the technicals.
As always, my job is to remain flexible. If conditions change and a signal shows up in the opposite direction to my current position, I'll be sure to take it.
By the way the first part of week 5's video is now published and available to watch on the STG FOREX TV YouTube channel.
I decided to split week 5 into two parts, as with all the travel footage it was getting quite lengthy. Part 2 will be available very soon.
Is it really possible to turn £50K into £1M? Over the next 36 months I'm going to find out by trading my personal account with full transparency.
Follow my 36-month challenge to turn £50K into £1M.
Read my blog here: https://stgforextvforexchallenge.blogspot.com
Subscribe on YouTube here: https://www.youtube.com/channel/UCyGySJ5IeDjq-DIJPU7nYvw
[Please note, the information presented is general educational material and does not constitute trading advice.
Trading foreign exchange (forex) on margin carries a high level of risk and may not be suitable for you or your circumstances.
Before trading forex you should investigate all of the risks, including the possibility that you could lose more than your initial investment.
It’s important to consider your investment objectives, level of experience and risk appetite. If in doubt seek advice from an independent financial advisor.]
This is the last day I'll be trading aboard P&O's Britannia cruise ship. It's been a great couple of weeks and I've been surprised how good the Internet signal has been, albeit we are out somewhere in the middle of the ocean.
The getting up early each morning is getting easier and I now don't really need my alarm clock. Again I'm pretty much alone in the Horizon buffet with coffee on tap and a view of the sea. While others sleep, I can't think of a better way to start the day.
Last night I put on a trade in NZDCAD (T28S) using my FULL HOUSE strategy. I missed the signal at 6pm while at dinner, so got in at a slightly worse price than I would have done had I sold on the candle close.
Normally I would never chase a position in this way, but the technical set up looked so good, I felt the additional cost of a late entry was worth it. Yes, this goes against my rules, which state that I can only get in at the same or a more advantageous price than the entry signal. I'm torn between the thought that I've used discretion to take what could be an excellent trade vs. the feeling that I've once again broken my rules, and what the hell am I doing!
Only time will tell.
This is the first trade I've executed that uses a slightly refined trend line on the daily chart. The daily chart sets the market mode for all of my trading activity. The market mode is either BULLISH, BEARISH or in RANGE, and I'm only permitted to take entries in the direction of the market mode.
I've observed that I've taken a number of entries recently on the wrong side of the trend line. For example in AUDUSD (T21S), I added to my position on the second YX signal, but this closed at the bottom of the daily range. What followed is a retracement, which hurt this position from the off. I'm now carrying a profit on position 1, which as things currently stand has been offset by the current loss on position 2.
I've now introduced a centre line between the extremes of my daily trend line. I've fine-tuned my approach to now only take short positions if the entry signal falls above this line (for long positions the signal will need to be below). This means that I would never have taken this trade, and if anything would have entered on the Z candle that showed up above the centre line, five candles after my entry.
Although drawing a trend line is never an exact science, I'm confident that this additional filter on my trade selection will make my assessment of market conditions in any given currency pair more systematic, and less prone to human error.
My AUDUSD short has retraced extensively, but only now am I potentially seeing a signal to lighten up on my position. News out of Australia overnight saw a spike, but the 50 SMA is still holding, and with trade disputes ongoing between the USA and China, in addition to poor economic data out of the country in recent months, I think this pair has further to fall. While I don't trade on fundamentals, it always helps when they point in the same direction as the technicals.
As always, my job is to remain flexible. If conditions change and a signal shows up in the opposite direction to my current position, I'll be sure to take it.
By the way the first part of week 5's video is now published and available to watch on the STG FOREX TV YouTube channel.
I decided to split week 5 into two parts, as with all the travel footage it was getting quite lengthy. Part 2 will be available very soon.
*********
Is it really possible to turn £50K into £1M? Over the next 36 months I'm going to find out by trading my personal account with full transparency.
Follow my 36-month challenge to turn £50K into £1M.
Read my blog here: https://stgforextvforexchallenge.blogspot.com
Subscribe on YouTube here: https://www.youtube.com/channel/UCyGySJ5IeDjq-DIJPU7nYvw
[Please note, the information presented is general educational material and does not constitute trading advice.
Trading foreign exchange (forex) on margin carries a high level of risk and may not be suitable for you or your circumstances.
Before trading forex you should investigate all of the risks, including the possibility that you could lose more than your initial investment.
It’s important to consider your investment objectives, level of experience and risk appetite. If in doubt seek advice from an independent financial advisor.]
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