Stephen's Journal

[luxinterior]

Another quiet session with no setups.

S

[luxinterior]

Again, no trades yesterday during both LO and NO. I didn't see any setup 1's and so I sat on my hands.

Let's see what today brings.

S

[luxinterior]

1. Trade Number: B1-T3
2. Date/Time: 2020/5/19 LO
3. Symbol/TF: DAX M1
4. Signal Type / Direction : Setup 1 SELL
5. Comments and Feelings at the Time of Taking The Trade: I was watching this potential setup unfold and saw a clear 1-2-3 EW develop and so was waiting for the 4. The AO came close to the ZL and the box was small enough. The lines weren't massively intertwined but the green did touch the red, the red dot had appeared, and I made a split-second decision. No sooner had I placed the PO than it was triggered.
6. Comments and Trades After Exiting the Trade: I was quite pleased with this trade as it developed almost in exactly the way that I thought it would. Of course, things could have been a little bit more perfect but all-in-all, I think it was a good trade and a solid setup1. Of course, if Immy or anybody sees anything I missed or did wrong, please comment.
7. DS For this Trade: 1
8. DS Running Total: 2 / 3 (66.6%)

2020-05-19_1615.png

[johndata]

Hello Steve,

With the strict rules of Setup1, you need at least 1 green bar at ewaves(that confirms the wave 4), for the sell setup.

Hope that helps

[luxinterior]

The strict cross of the ZL would be for a 'perfect' setup 1 as described in the video from Immy, 'The Perfect Setup'. The 3 training videos in Lesson 3 - Part 3 - Step 2, and the PDF flowchart, talk about 'close to ZL', and the videos show setups very similar to the one I took.

I think while this one may not be a 'perfect' setup 1, it's still a valid setup 1. At least, that's the way I see it but if Immy wants to chip in, then I'm all ears.

S

[immy]

It all depends on what you have decided for yourself in your trade plan.

I usually recommend for people to consider Cross of ZL as a must during the "mechanical" stage that is Stage 1.

So its a good trade overall. But has two issues. One there is no fresh cross of ZL and second, the levels to the left are too close.

Both of these are the "orange" box decisions (as per flow chart). Where the trader's discretion is required.

I would side with Johndata on this. In stage 1, stick to Perfect setup 1's where there is a Clean Fresh cross, even if there is just one green bar (for this short setup) on the AO....

Dealing with Subjectivity is an Art that we all must learn but first we must start with the most objective and mechanical stage.

[luxinterior]

While I appreciate your feedback Immy, I'll utilize my 13 years of trading experience and inject my own 'discretion' on this one. I'm happy with the trade, I believe I showed discipline and I'll stick with the DS1.

I sat on my hands for 3 days waiting for a setup that I understood complied with the rules of a setup 1 as outlined in both your videos and flowchart PDF. I think this one did and you've really not said anything that would cause me to believe otherwise. It seems like you're saying that complete novices should stick to the crossing the ZL 'rule', but it's up to the individual trader's discretion.

I'll update my trading plan to reflect the fact that I'll be using the discretionary setup 1 outline and not the 'mechanical' one.

Thanks

S

[immy]

You Got my point EXACTLY as I intended. Absolutely Correct. If you're experienced and you know and can handle the tiny subjectivity that is required for the "Close to Zero Line" concept. Add that to your trading plan. and you're good to go.

nice one mate

cheers

[luxinterior]

No trades today in what felt like a very 'trappy' market. Low volume with clearly defined ranges looked like a perfect opportunity for brokers to collect stops.

Glad I sat on my hands and will be back tomorrow to see what the market has to offer. It the markets not offering, I'm not taking. Simple as that!

2020-05-20_1654-novice-traders-trapped.png

[luxinterior]

Another quiet session with low volume; so no setup 1's and therefore, no trades.

Stuck to the trading plan, so pleased enough with the outcome. If I ever start straying from it, then I WILL be in trouble.

S