Michael's (zlabis) Journal [The Magician]

[zlabis]

Mon. Nov. 9, 2015

Screen time:
LO-session 09:00 - 11:00 every day (GMT+1, DST over) M1/M5 DAX only - LIVE

Automated LO breakout trades on DAX and FTSE worked out again (+2% each).

After LO, DAX went into small but smooth w3-w4-w5 cycle.

Trade 1:
It didn't offer AA signal on top of w4 into w5 but a good Cherry at the end of a possible w2 of w5. Although it wasn't new peak of AO the Cherry bar was at a good PC pattern (end of a-b-c correction) which overided the filter of "no new peak of AO". Target was macro TZ1 (TZ1 of eWaves indy) and I placed my TP at 3R level which was 5p above TZ1. It turned outthat it really was the perfect spot because it got hit nearly to the point. In addition, I was also lucky because exit slipped 0.5p in my favour and brought +3.0%.

Trade 2:
This one was a classic impulsive trade because I wanted to take one more trade before my session was over today. The ironic thing about it was, that earlier I talked in skype room about unconscioussly interpreting chart situations as patterns where they are not present and a few minutes later I tapped into exactly that trap. Fortunately and luckily it was still some sort of pull-push situation and, at least, I hit 1:1 level and therefore it was a free trade anyway. It reversed after 1:1 was hit and it got exited at BE with 0.0%. Lucky me but DS = 0 for that of course.

The reasons why I should have filtered Trade 2:
1. divergency between price and AO
2. strong, still valid down-fruit 2 candles prior signal bar
3. picture book a-b-c correction wave 4 on M5 was at it's end and ready for w5 down

That trade was a good example for me that, while trading, I need to focus on discipline and stick to my pattern-recognition-routine all the time until I quit active trading for the day.

Today's result: +24.0p = +3.0% , DS = 1 / 2 , 2.00 hrs

[immy]

too perfect! make some mistakes man! make some mistakes... be a human (rofl) love it .... its ok to make mistakes...

meanwhile I did not take a single damn trade!

[zlabis]

You're absolutely right. It's good to get reminded sometimes because it can help to stay grounded and humble and not to get cocky.

[zlabis]

Tue. Nov. 10, 2015

Screen time:
LO-session 09:00 - 11:00 (GMT+1, DST over) M1/M5 DAX only - LIVE

LO Breakout automatic trades with Steve's News AE worked out nicely again and brought -1% for UK100 (FTSE100) and +2 for DAX30. This is +20% (without compounding) since 2nd of November. Really awesome.

After LO whipsaw, manual trading started with a pretty Monarch Seed. I place PO there but it got invalidated. Then DAX went into movement without clear movement or structure. Therefore I took a longer coffee break and came back when the tight range got broken to downside but it didn't offer any signals at first pullback because AO didn't change colour there.

Trade 1:
At second pullback it produced a couple of good signals. First one was a Cherry right at green gator with very strong M5 down momentum. The corresponding PO was placed and untouched until second Seed, a tiny one, appeared. I canceled Cherry-PO and placed PO at that Cherry. Unfortunately, after it was triggered, DAX went into a small B-trap and kicked trade out at init SL with -1.0%.

Trade 2:
A very nice and clear a-b-c correction (wave 4 of wave 3 in hindsight ;-) ), in which I had got trapped with Trade 1 a few minutes before, ended in a lovely, picture book Principle C (PC) with a Bearish Divergency Candle (BDC) as termination candle of correction right at red gator. Although it wasn't a Seed/Cherry/AA signal, my trading plan says that I enter trades during PC situation if there is Seed/Cherry/BDC candle as potential end of correction and if trade is in direction of M5 momentum and open M5 gator. TP depends on micro TZ1 but has to be at least 2R. In this case I placed hard TP 5p above micro TZ1. I trailes candles after 3R level was passed but it hit hard TP before with +4.3%.

Today's result: +23.0p = + 3.3% , DS = 2 / 2 , 2.00 hrs

Recently I try to filter signals much more rigorously what results in much less trades and much calmer trading situation to me. I think it's the consequence of my evolving trading plan where many possibilities, which can show up during trading, are covered. The situations which are not covered, I don't trade. Very good approach, IMHO, as Immy recommended to Nikita in Skype room, is: "If you're confused (about chart), skip it (the signal)!"

[Nikita]

MZ, if it is no confidetial can you share you trading plan chapter about your enters?

[immy]

MZ, if it is no confidential can you share you trading plan chapter about your enters?

If you'd like to enquire about the BDC, imho, its just a "an executive decision" type discretionary trade. I fully disagree with it. But i'm certainly not saying Zlabinger should not take it. He can, as its his account and his mind. But for others who are doing their T20's they must not try it. Stick to your chosen plan and keep taking entries on the signalys only your own Setups! And as always, if you don't know what to do, don't do anything. Do I need to repeat "Confusion is not a problem, its the solution".

nicely traded Michael! We learn a lot from you! You're entering a different league! enjoy

ps: I must admit that with the benefit of hindsight, i can safely say that it was an excellent trade idea. The retest of previous support area that turned into resistance , the bounce of the aims box low, and the pc abc pattern, was nicely used. It comes at a price. Patience and discipline and sharp attention and focus pays off! very nice

pss: although I told off Peter earlier I would like to say now, Peter you were in the zone and you took this break of box. At that moment you were in touch with the market. However its best to stick to Entry signals. Its better for longer term. ALL IMHO

[zlabis]

MZ, if it is no confidetial can you share you trading plan chapter about your enters?

Hi Nikita,
it's not confidential but it's 1. in progress and 2. in German language therefor not much of use for you ;-)

As stated in some posts above, my rules are:

Entries on M1 away from M1 purple and in direction of open M5 gator:
1.) Seeds and Cherries according to Grant's flow chart
2.) Adam's Apple Fruits into wave 4
3.) Divergency Candles at Principle C situations
4.) Momentum Inside Bars at break of range

.) Dot Candles and S1/S2 if I missed an initial, still valid signal, mainly AAs or PCs into potentially bigger moves towards farer away TZ1 of big w5 of w3 or of w5
.) S1/S2 if it's really obvious, into possible w5 and if there were no other signals to enter

Exits:
.) SL to BE if 1:1 level gets hit
1.) basically hard TP at 2R level
2.) if micro TZ1 reasonably beyond 2R, then hard TP at next whole number (i.e. 3R, 4R)
3.) if AO Monarch into possible beginning of w3 or w5 or Adams's Apple Fruit into w5, target is TZ1 of eWave indy but as price passes 2R level, I'm looking for exit signals (5 same colored candles, counter Fruit, green Gator, AIMS levels) as well.

Filters:
1.) Structure and movement not clear and obvious
2.) M5 gator closed
3.) M1 against purple
4.) No new peak of AO, except for PC situations
5.) Divergency between price and AO
6.) TZ1 already hit or too close to entry
7.) discretionary if "important" level (R/R, round number like 10000, HTF AIMS level) is too close to entry.

Risk-/Money-Management:
.) max. 1% risk per trade
.) Add on basically possible but my exposure to market must not exceed 1%, this means that initial entry has to have it's SL at least at BE already before taking an additional entry
.) Daily SL -3%, Daily TP +5%.
.) Weekly SL -6%, Weekly TP +10%
.) Monthly SL -20%, Monthly TP +40%

[zlabis]

Wed. Nov. 11, 2015

Screen time:
Afternoon-session 14:30 - 15:30 every day (GMT+1, DST over) M1/M5 DAX only - LIVE

No trades during my afternoon session. Filtered some signals as described at screen shot.

Today's result: 0%, DS = 0 / 0 , 1.00 hrs

DAX_M1-M5_2015-11-11_NYO.png

Thu. Nov. 12, 2015

Screen time:
LO-session 9:00 - 9:30 every day (GMT+1, DST over) M1/M5 DAX only - LIVE

No active trading due to complete mental distraction because of important business contract appointment in the afternoon. When I realized my dizzyness, I stopped watching charts immediately.

Today's results: 0%, DS = 0 / 0 , 0.50 hrs


Fri. Nov. 13, 2015

Screen time:
LO-session 9:00 - 11:00 every day (GMT+1, DST over) M1/M5 DAX only - LIVE

2 POs at good signals but got invalidated.

Today's result: 0% , DS = 0 / 0 , 2.00 hrs

DAX_M1-M5_2015-11-13_LO.png

Result of week 46, 09.11.-13.11.2015 - M1/M5 live:
Mon. 09.11. +24.0p = +3.0%, DS = 1/2, 2.00 hrs, M1/M5
Tue. 10.11. +23.0p = 3.3%, DS = 2/2, 2.00 hrs, M1/M5
Wed. 11.11. 0.0p = 0.0%, DS = 0/0, 1.00 hrs, M1/M5
Thu. 12.11. 0.0p = 0.0%, DS = 0/0, 0.50 hrs, M1/M5
Fri . 13.11. 0.0p = 0.0%, DS = 0/0, 1.00 hrs, M1/M5
-----------------------------------------------------------------------------------------------------------------------------------
Result ...... +47.0p = +6.4% (with compounding), DS = 3 / 4 (75%), 6.50 hrs

[zlabis]

Mon. Nov. 16, 2015

Screen time:
LO-session 9:00 - 9:30 every day (GMT+1, DST over) M1/M5 DAX only - LIVE

DAX opened with good breakout. Automatic EA trades ended -1% for short and BE for long. Have thought about what Immy said that DAX and FTSE is poor diversification. Will stop FTSE for now.

Trade 1:
After LO breakout, DAX moved up strongly and offered a Seed, together with small pullback of AO at first breathing pause, which I took gratefully. Although it wasn't a "real" pullback to green or reg gator, it was nevertheless a short period of consolidation ending with a Seed (= S1 of 5x lower time frame) during a strong up move without resistance or AIMS levels ahead.
As there was neither Monarch AO pattern nor indication for bigger w3, at that time, I placed TP conservatively at +2R level. SL was brought to BE by Snorm's "Advanced Trading Manager" when 1:1 level was passed and TP was hit soon after that with +2.0%. Nice one.

Rest of the session was characterised by filtered signals due to their positions in relation to peaks of AO as shown on screen shots.

Today's result: +26.0p = +2.0%, DS = 1 / 1 , 2.00 hrs

[immy]

You're following the structure pretty nicely... I believe any trading system based on rules that would keep you in sync with the underlying structure will be successful in the long run. the little tactics such as news and open times etc are also part of the structure but they change from time to time as you are well aware of but the Push Pull Push (eWave) is the definite structure of the market.

I think of it in this way. Push (wave 3) Pull (wave 4) Push Again (wave 5) now lets do fractal geometry here. Within the first Push (there will be the same pattern inside. Push Pull Push Again. PPPA! within PPPA!
Then there will be a PPPA within the Push Again.
Now lets call Push Wave 3 and Push Again Wave 5 that is Elliott Wave. and lets call Pull as Wave 4. job done. Elliott Wave mystery solved forever.

Wave Push , Wave pull and Wave push again.
now let Push be 3, Let pull be 4 and let Push Again be 5.
Wave 3, Wave 4, Wave 5.
Within Wave Push we have wave push wave pull and wave pull again
within wave push again we have wave push wave pull and wave pull again
but within wave Pull we also have some sort of wave push and pull and push again
but we don't call it that because its not always that way. Wave pull some times can be complex so we say, feck it. We don't trade Wave pull.

i'm gonna make an Infograph of thsi concept! coffee gives me wings