Michal's Journal

[Michal]

I've just went through your last reply Immy I got your point so big THANK YOU for putting another light in my tunnel )

[Michal]

hmm this is a big question i dont know if i did correct but in this trade the reason why i closed it was

overal trend is up and the 4 wave 8 out of 10 times finishes by purple line so I decided to close it.
Am I correct?

Profit : +13 pips

[immy]

hmm this is a big question i dont know if i did correct but in this trade the reason why i closed it was

overal trend is up and the 4 wave 8 out of 10 times finishes by purple line so I decided to close it.
Am I correct?

Profit : +13 pips

If you had taken the fruit, then it would be good because it should have been over 1:2 but if you took classic breakout, then you took a wrong setup as by the rules of dot trade or S1 setup, we don't take trades towards purple. Most important part here is that your required stop loss was much much larger than your potentail available gain until it reaches the purple. Such trades are lower probability and in the long run it may not bring good profits. So we stick with "breakouts in the direction of trend" or we pick top and bottom of waves using fruit to get "early" entry. e.g. here using fruit your entry would have required only 10 or 12 SL with potential gain of 1:4 that is 40pips available, a much much better RR and a potentially feasible strategy in the long run.... comparatively trading the breakout of AIMS box required 40 pips stop loss a gain of 13 pips is 3 times less, with a success rate of 65% such trades wont bring your account to the positive over a series of lets say 100 500 trades... we need to take trades that require a very small stop loss pipwise, which is appropriate for the pair and time frame with huge atleast 2x4x potentail gains. e.g. EU ADR remains between 100-150 normally. so if you see that it has moved only 50pips within a day and you get a setup that requires 20 pips or less SL your potential gain , its probability is higher as compared to a setup that requires 70pips SL. its all in the numbers! i hope this helps... and don't forget Patience and Discipline = Consistency and consistency is the name of the game!

[Michal]

I missed the fruit.... was out from my home, so i guess i was lucky i pay more attention next time to skip this kind of trades.
thx:)

[Michal]

Eur/Usd - m1/m5

banked : +26 pips


upss i just noticed i missed a picture:/

[Michal]

Hi
Could some one tell me if i did bad entry? i checked h4 and it was same seed candle.I know AO was weakening but I saw trades on this forum with seed and AO even weaker :/

I think the main mistake why i should not takie was AO but on h4 looke promising :/ - it's really frustrating how one bad trade can demolish your head

[immy]

Hi
Could some one tell me if i did bad entry? i checked h4 and it was same seed candle.I know AO was weakening but I saw trades on this forum with seed and AO even weaker :/

I think the main mistake why i should not takie was AO but on h4 looke promising :/ - it's really frustrating how one bad trade can demolish your head

[Michal]

Thank you Immy for your words.I spent recently lots of time and i put huge effort and time in to it and all of a sudden i was thinking i've done stupid mistake....

NEXT

[immy]

Hi Michal,

Mistake happen. That's how you learn but make sure yo don't repeat them. When you take SEED it is important to check its position within wave.
If you spot SEED in beginning of new wave or fresh AO cross then it's high probability setup but if you spot SEED at top of wave and AO is at peaked then you should filter it. Also check whether pair has moved enough for the day or not. e.g. if EU already moved 90 pips and you see SEED then no point of taking it as it's ADR is 100-120 pips.

Hope this helps.

Regards,
Sam

100% agreed with Sam! well said and thank you.

[Michal]

Thank you Sam is there any indicator you use to check or just simply from London open up to current time? how is it best to check it ?