Magpie Trader
Wednesday, October 19, 2005
Reply to forex2stay comment
Hi forex2stay,
thanks for checking in! yup the pip average has increased nicely actually over the last few weeks. I think the blog has helped a great deal from a 'focus/discipline' point of view as a personal journal prior to that was good but not as 'real'. Also the ACD method as a way of monitoring and (sometimes) entry into the market has improved things as it automatically filters the 6 majors I look at.
I've got them set up on one screen in MT4 with the ACD, 3 day pivot indicator, daily pivots, yesterday's hi/low, a couple of EMAs and MACD on a 30 min chart (they all come up automatically), so at a glance I can see what is looking like a good set up. From there it's a check on the higher TFs to see if anything could scupper the trade, then if not head to the lower timeframes and look for an entry. Prior to this I was really just sticking to cable, which provides signals every day but not all of them are profitable or as profitable as I'd like. So after some frustration I started looking at the 6 pairs I tend to stick with and rapidly improved, but soon after 'too much info' took over and the results were mixed again.
Since I've had the MT4 ACD et al indicator set up I'm cherry picking the most (historically) profitable signals across the 6 pairs, then move to my other system signals to look for good entries. I've ranked my signals from 1 to 5, 1 being the best, which means with more options (no. of pairs) to look at the more '1' and '2' ranked trades become available.
I've also recently come across the FX wizard strategy which is by a guy called Rob, it's free at www.spreadtrade2win.com, essentially it's a standalone strategy which is profitable on its own. The main thing I took from it was the use of ADX which is an indicator I've not really understood very well before and hence ignored - now though, I love it as it's refined my previous indicator signals which were mainly support/resistance trend lines, MACD and EMA based. I still use the others, but ADX refines the signals I find and not only helps to increase the probability of the trade going in my favour, but gives the confidence to pull the trigger slightly sooner and then 'add in' (new strategy coming in next week) when MACD, other signals and ACD confirm, and ADX looks 'certain' on the lower - then higher time frames .
I've been profitable on a weekly basis for the last 4 months and profitable on a monthly basis for the last 8. However it's only the last 6 weeks that I've hit my weekly target of 112 pips (which is what it'll take to make me a full time trader in 6 months and 2 weeks and counting!). I like working in IT mainly because of the people, it's just the 40 hours a week, politics, hypocrisy, intellectually challenged bosses and the lack of daylight I'm not keen on...
I'm not making as many pips as you so please ignore the next bit if it sounds a bit like teaching yer granny to suck eggs, but... maybe the ACD method or something like it might help you with a 'quick glance' filter across more pairs, that doesn't produce the 'too much information' feeling. I can see in about 5-10 minutes now which pair or pairs I'm going to concentrate on, then move to the lower timeframe charts for that one or two to look for entry signals.
I've really only been using this set up for the last month in it's present form and I'm tweaking and refining the edges, but for the first time, ever, in my trading career there isn't that small knot fear that what looks like a great signal will turn to mush because I missed something obvious prior to the trade going on, it also shows me when i'm wrong and it's time to get out sooner. Of course I'll be wrong at times but the fear has (almost) gone.
One thing I've also learnt about myself in the last 6 months is I'm not naturally gifted at trading or at the discipline side of things (the ego has taken a righteous bashing over the last 18 months ;o) ), however the set up I've got now is simple, to my brain at least, it show's high grade signals or keeps me out and doesn't actually leave much room for 'creative' (and usually costly) thinking.
I suppose this has been written more to myself as I've not really vocalised it all before since implementing it, but it may help in some small way - that's the hope anyway.
cheers
magpie
thanks for checking in! yup the pip average has increased nicely actually over the last few weeks. I think the blog has helped a great deal from a 'focus/discipline' point of view as a personal journal prior to that was good but not as 'real'. Also the ACD method as a way of monitoring and (sometimes) entry into the market has improved things as it automatically filters the 6 majors I look at.
I've got them set up on one screen in MT4 with the ACD, 3 day pivot indicator, daily pivots, yesterday's hi/low, a couple of EMAs and MACD on a 30 min chart (they all come up automatically), so at a glance I can see what is looking like a good set up. From there it's a check on the higher TFs to see if anything could scupper the trade, then if not head to the lower timeframes and look for an entry. Prior to this I was really just sticking to cable, which provides signals every day but not all of them are profitable or as profitable as I'd like. So after some frustration I started looking at the 6 pairs I tend to stick with and rapidly improved, but soon after 'too much info' took over and the results were mixed again.
Since I've had the MT4 ACD et al indicator set up I'm cherry picking the most (historically) profitable signals across the 6 pairs, then move to my other system signals to look for good entries. I've ranked my signals from 1 to 5, 1 being the best, which means with more options (no. of pairs) to look at the more '1' and '2' ranked trades become available.
I've also recently come across the FX wizard strategy which is by a guy called Rob, it's free at www.spreadtrade2win.com, essentially it's a standalone strategy which is profitable on its own. The main thing I took from it was the use of ADX which is an indicator I've not really understood very well before and hence ignored - now though, I love it as it's refined my previous indicator signals which were mainly support/resistance trend lines, MACD and EMA based. I still use the others, but ADX refines the signals I find and not only helps to increase the probability of the trade going in my favour, but gives the confidence to pull the trigger slightly sooner and then 'add in' (new strategy coming in next week) when MACD, other signals and ACD confirm, and ADX looks 'certain' on the lower - then higher time frames .
I've been profitable on a weekly basis for the last 4 months and profitable on a monthly basis for the last 8. However it's only the last 6 weeks that I've hit my weekly target of 112 pips (which is what it'll take to make me a full time trader in 6 months and 2 weeks and counting!). I like working in IT mainly because of the people, it's just the 40 hours a week, politics, hypocrisy, intellectually challenged bosses and the lack of daylight I'm not keen on...
I'm not making as many pips as you so please ignore the next bit if it sounds a bit like teaching yer granny to suck eggs, but... maybe the ACD method or something like it might help you with a 'quick glance' filter across more pairs, that doesn't produce the 'too much information' feeling. I can see in about 5-10 minutes now which pair or pairs I'm going to concentrate on, then move to the lower timeframe charts for that one or two to look for entry signals.
I've really only been using this set up for the last month in it's present form and I'm tweaking and refining the edges, but for the first time, ever, in my trading career there isn't that small knot fear that what looks like a great signal will turn to mush because I missed something obvious prior to the trade going on, it also shows me when i'm wrong and it's time to get out sooner. Of course I'll be wrong at times but the fear has (almost) gone.
One thing I've also learnt about myself in the last 6 months is I'm not naturally gifted at trading or at the discipline side of things (the ego has taken a righteous bashing over the last 18 months ;o) ), however the set up I've got now is simple, to my brain at least, it show's high grade signals or keeps me out and doesn't actually leave much room for 'creative' (and usually costly) thinking.
I suppose this has been written more to myself as I've not really vocalised it all before since implementing it, but it may help in some small way - that's the hope anyway.
cheers
magpie
// posted by Magpie @ 12:51 pm 
