Chris' (ftsforex) Journal

[ftsforex]

I've been a member here for a while now but have been focussing on learning the method in full before I start posting any results. I've now got to the point where I have a clear trading plan for the strategy so I thought it was time to start a journal and show everyone how I'm applying it.

As a bit of a background, I'm already a full-time trader but I've been exclusively trading a longer term strategy that's based around finding the turning points in the market using supply and demand analysis. I have actually traded 5min and 15min charts in the past but the 1min is something new for me so it's been a bit of a learning curve (particularly developing the concentration required since I'm only used to checking my charts every few hours) but I'm feeling quietly confident about it purely because it's one of the only lower timeframe strategies I've seen that allows you to keep your risk significantly smaller than your potential reward which is absolutely key to my trading style. I also love the fact that Immy describes trading as a "pattern recognition numbers game" because that's EXACTLY how I see it. My motto has always been "a good trade is a trade that follows your trading plan whether it wins or loses, and a bad trade is a trade that doesn't follow your trading plan whether it wins or loses". The outcome of any single trade is irrelevant in the long term and all we can do is follow our rules with consistency and discipline and the long term profit will take care of itself.

My Trading plan:

Markets - I'm trading a variety of different markets with the 5min chart (7 in total) and the EU, EJ and DAX with the 1min chart as well. I'm aware that this is against the advice of Immy and others but this is working well for me and I actually find it more difficult to keep my concentration if I only have 1 chart up at a time. I also find that I'm more likely to take weak setups if I'm only following one market where as doing it like I am currently I can focus on taking the stronger ones as they appear.

Trade management - I currently have a fixed maximum target of 20 pips on each trade and I'm using Grants trade management rules. My main focus is on reducing risk as opposed to taking massive profits and my goal is for my average loss to be less than 10 pips.

I'm demo trading for now until I'm completely comfortable and have proven that I can trade the method consistently and profitably and once I go live i will update this journal with my money management rules.

[ftsforex]

Yesterdays trades:

1st Trade = EU 1min, -8
2nd Trade = EJ 5min, -9.4
3rd Trade = EU 5min, +19.8

Total = +2.4

Relatively happy with the days results since it seemed like a tricky day overall and I came out slightly ahead. The 1st trade was avoidable since it came in a low flat period with no real momentum, I also could have moved the stop up behind the new AIMs level but wasn't sure since it was so close to current price. The losing trade on the EJ was fine in my opinion, just didn't work out. Finally, I got lucky on the final trade since I wasn't paying attention and didn't move my stop up behind the trigger candle like I should have done. It would have been a small loss if I had but as it happens I stayed in until the breakout and got out with a decent profit.

[ftsforex]

One trade today and fortunately it was a nice winner.

UJ 5min, +17.1

Very happy with the trade, tight AIMS box, AO right on the zero line and below the purple with the gator sleeping. A little lucky that it didn't quite hit +5 initially so I hadn't moved to -4 when it retraced. It hung around for a while but then moved down nicely. Almost 40 pips was possible but I jumped out at +17.1 which was a bit naughty since my trading plan tells me I should hold for 20 in that situation. That means I cost myself 2.9 pips and I need to remind myself to follow my plan rather than react based on fear of losing potential profit.

[immy]

I've been a member here for a while now but have been focussing on learning the method in full before I start posting any results. I've now got to the point where I have a clear trading plan for the strategy so I thought it was time to start a journal and show everyone how I'm applying it.

As a bit of a background, I'm already a full-time trader but I've been exclusively trading a longer term strategy that's based around finding the turning points in the market using supply and demand analysis. I have actually traded 5min and 15min charts in the past but the 1min is something new for me so it's been a bit of a learning curve (particularly developing the concentration required since I'm only used to checking my charts every few hours) but I'm feeling quietly confident about it purely because it's one of the only lower timeframe strategies I've seen that allows you to keep your risk significantly smaller than your potential reward which is absolutely key to my trading style. I also love the fact that Immy describes trading as a "pattern recognition numbers game" because that's EXACTLY how I see it. My motto has always been "a good trade is a trade that follows your trading plan whether it wins or loses, and a bad trade is a trade that doesn't follow your trading plan whether it wins or loses". The outcome of any single trade is irrelevant in the long term and all we can do is follow our rules with consistency and discipline and the long term profit will take care of itself.

My Trading plan:

Markets - I'm trading a variety of different markets with the 5min chart (7 in total) and the EU, EJ and DAX with the 1min chart as well. I'm aware that this is against the advice of Immy and others but this is working well for me and I actually find it more difficult to keep my concentration if I only have 1 chart up at a time. I also find that I'm more likely to take weak setups if I'm only following one market where as doing it like I am currently I can focus on taking the stronger ones as they appear.

Trade management - I currently have a fixed maximum target of 20 pips on each trade and I'm using Grants trade management rules. My main focus is on reducing risk as opposed to taking massive profits and my goal is for my average loss to be less than 10 pips.

I'm demo trading for now until I'm completely comfortable and have proven that I can trade the method consistently and profitably and once I go live i will update this journal with my money management rules.

Hi Chris

Im glad you have decided to start a journal. I must admit that this is one of the best into Ive read on this forum.
I totally agree with you about losing focus when trying to trade only one chart. It happens to me as well but its not true for every one. We are all unique beings and we must formulate a trading plan and strategy that is the best match to our trading personality. But before you get there u have to start somwhere let that be a simple spot to start from which in your case you have already established. Great.

May the pips be with you

[Darren]

Hi Chris,

Great to see another journal started. I think I will start one of my own as well!

I am trading the same 3 pairs as you on the 1 min (although I have barely placed a trade on the DAX yet) but I was wondering which 7 pairs you are trading on the 5 min chart?

All the best,

Darren

[immy]

Hi Chris,

Great to see another journal started. I think I will start one of my own as well!

I am trading the same 3 pairs as you on the 1 min (although I have barely placed a trade on the DAX yet) but I was wondering which 7 pairs you are trading on the 5 min chart?

All the best,

Darren

I'd just like to add that I trade EU GU UJ EJ on M5 and H1. I also look at and sometimes trade AU GJ EG Swissy and DAX (Ucad is there too to see what the loonei does.) I am in the process of (and have been in it for a year now haha) to update the book to fully reflect what we have learned through the last two years. Its been a epic journey! Wish you all the best, and hope to see more of you and your trades both here and in the chatroom!

cheers

ps: Darren, a journal is a great tool if you would like to achieve "peak performance".

[ftsforex]

The pairs I'm currently watching are:

EU, EJ, DAX, GU, AU, UJ and WS (dow).

I have an MT4 on my left screen with 6 charts tiled on it, the 5min and 1min for EU, EJ and DAX, I then have a 2nd MT4 on my right screen with 4 charts tiled on it, the 5min for GU, AU, UJ and WS.

I must admit I haven't taken any trades on the dow and haven't really paid much attention to it, if I'm perfectly honest with you I'm a bit OCD and I wanted a 4th chart so that there was a nice symmetrical split on the screen and couldn't think of any others so I added the dow. It does move nicely and has a pretty small spread, the downside is I generally aim to be done by the afternoon and that's when that market opens. Perhaps in the future I will do 2 hours in the morning and then 2 hours in the afternoon for the US open like Immy seems to, then the dow will make more sense.

I like the AU, UJ and GU but couldn't find any other decent FX markets, and the FTSE is too slow in my opinion.

[Dave]

Hey Chris,
Congratulations on starting your journal. I agree completely with Immy's post above - this is one of the best openings to a journal I've read. I enjoy your writing style and look forward to reading your posts from here till eternity.

Two things you said caught my attention - OCD, I kept a usdcad chart on my screen for 2 yrs without ever taking a single trade, just because it maintained the balance of my desktop! And I agree that trading more than one pair maintains my attention, and helps filter out those lousy setups I feel obliged to 'have a go' at when watching EU only. Being able to look for the pair that's moving and concentrate on trading that pair is a big step towards success. I too have the Dow but the timing of US markets isn't ideal for me, and its rare that I watch it with focus.

Anyway, best of luck, cya in Chatzy.
Dave

[ftsforex]

One trade today which was a rent. It was a qualified setup based on the rules so I wasn't wrong to take it, the only thing to note is that the market was a bit flat at that point so that could have been a hint but I'm focussing on following the setup in a discipline fashion currently so I don't want to think too much

One other note is that it did eventually move up but I correctly followed my trade management rules and got out for a loss, can't complain.

EJ 1min, -10.5

[ftsforex]

Apologies that it's stagnated a bit here, I'm very interested in the new hourly concept Immys been talking about so I'm researching that and when I've come up with a trading plan I will post it here.