So here I am, as promised I will take this trading contest very seriously for my own skills improvement, I wanna do some very good disciplined trading, what will be results I am not thinking of right now
So here is my account data:
Investor password: njjize11
Pairs for trading: eur/jpy, eur/usd, gbp/usd, aud/usd. I doubt I will trade any other pair, but usd/cad might be the one I look on when there is rate decision this week.
- About strategy, I am going to use pivot points and that means resistance and support will be my closest friends.
Right now what is in my mind already:
Buying support point eur/jpy, eur/usd, aud/usd because these pairs have shown me strong movement upwards and until we see some reverse in major trend, some catalyst in news section to the downside, nothing is gonna change. Basically 1h time frame used for this.
- News trading. I am going to trade news release on 5 min chart, though some speculations on pre-news I might do too, but that is rarely and not sure I might have such opportunity around in next weeks but who knows now. What is in my mind already for next week:
- Monetary policy for Japanese Yen is gonna be interesting but not sure I am gonna trade it.
- ZEW economic sentiment for Euro, existing home sales for Dollar on Tuesday
- Huge one is going to be Aussie CPI on Wednesday, this one might be a nice opportunity to sell Aussie because expectations are low and if release is lower you know very well whats gonna happen. Also this seems like one event though where I might speculate before release on weaker Aussie but also we should be careful, any better than expected outcome is likely to lead to strong Aussie and definitely 1.06 will be retested in such scenario.
- Claimant Count Change and MPC Meeting Minutes for pound is up for trading on Wednesday too.
- HSBC Flash Manufacturing PMI and other Chinese data on Thursday might be nice indicators for overall market sentiment.
- German Flash Manufacturing PMI along with other German and EU data on Thursday too might be interesting releases to work with.
- German Ifo Business Climate good indicator for market sentiment as well on Friday
- Prelim GDP q/q for pound on Friday is going to be big one, but not sure I will be able to trade this release, however some speculations I might do before release on Friday morning.
That is for news trading, I know a lot but I am stating these most important here so I can easier state my decisions later when I open trades. Not saying I will trade all of them, but I usually follow these news releases and who knows maybe I can find some nice trades.
- Last but not the least is simple MA strategy based on momentum. 30 min time frame, 20 moving average and candle closure above or below this line triggers trade. take profit 30 pips, stop loss 20 pips. Strategy based on momentum but used only on European session when market is most volatile and momentum is there. Back testing of more than one month and results are promising, lets see how its gonna be this week.
And the most important part, discipline, risk management and money management.
Balance: 10000 dollars
Risk 2% per trade, no more than two trade simultaneously.
For news trading: 30 pip stop loss: lot size 7 which will be 210 dollars per losing trade. take profit depends on release and market momentum, but might vary from 30 up to 60-70 pips.
For pivot points strategy: 30-35 pip stop loss, again 6-7 lot size, take profit 40-80 pips, depends on news and market momentum too.
For MA strategy, lot size also unchanged - 7, might take 8 but not going to risk more than that this time. Everything else explained above.
Lot size decreased for every 1k dollars lost, increased for every 1k dollars earned, so if I have BALANCE of 11k I can use lot size 8, if balance 9k I use lot size 6.
Sure some risk management calculations will be done in process too, but that is basic points I must stick with.
So this is for my own purpose to train discipline, I will explain every single trade I make carefully and hope to achieve good results in improving my discipline.
Here is trades example how I will format each trade:
might add charts too in reason section.
I will trade no matter how big or small my trading capital and hope to be able to trade also on February 8 and 9
I will add information, in case I forgot something, because that sometimes happens to me, I wrote a lot and might forget something there.
Best of luck to all and looking forward to next week! This is going to be exciting!