GBP/USD seems to be testing 1.463, I'll enter at 1.4632.
Thursday, March 26, 2009
26 march 2009
I've set up my trades today, seems closer to the Buy order. Am placing 4 minilots today.
Sunday, March 22, 2009
Another good trade on March 09
Very big drop on GBP/USD on 9 March 09, and was lucky enough to catch it. Dropped almost 260 pips!
Another good trade example on March 09
Decent move on the GBP/USD. Short trade, went to about 90 pips.
Another good trade example in March 2009
Good breakout trade on 16 March 2009. Topped at about 140 pips.
Another good trade example in March 09
Wonderful run on 19 March, went to almost 300 pips. I was lucky to make about $800 this day! (on 4 minilots)
Good trade example I've taken this March 2009
Good move on 20th March 09. The move had started about 20 minutes before 3.05 pm (GMT+8) so I entered after the slight pullback at 3.05 pm. Ran for about 90 pips.
Saturday, March 21, 2009
What I had to overcome
For the last few months, I've maintained my account at the same level. I get frustrated knowing that I'm following my strategy to trade, but after a string of losses, when I'm supposed to up my number of minilots a little bit, I get scared. For example, I start of with 3 minilots, I lose. I trade again with 3 minilots, I lose. The next one I'm supposed to trade with 4 minilots. If I lose again, 4 minilots. The next one is supposed to be 5 minilots. But by this time, I'm a bit nervous to jump in with 5. So I stick to 4, then i make my win, but now it's enough to recover what's lost in the string of losses. So after a week, I bring my account by up to what it was at the beginning of last week.
So, I've told myself to get over that fear. Since I did that, I've increased my account by a good deal. In the last couple of weeks, I've profited close to $1500. I guess I've found the last flaw that was holding me back.
So, I've told myself to get over that fear. Since I did that, I've increased my account by a good deal. In the last couple of weeks, I've profited close to $1500. I guess I've found the last flaw that was holding me back.
What I now know
I've learnt so much in this 2 years about forex trading. Now, I understand that the hunt for a perfect strategy is quite a waste of time. Yes, it's important to find a strategy that works somehow, but even a simple one would do. What works for me is a breakout strategy.
What I do is, right after 3.05 pm (GMT+8), I look at the GBPUSD chart and place breakout trades. It's not a hard and fast rule of from what time I create the channel. It depends on the look of the chart. If there was a big move early in the morning, and things only consolidated from, say noon onwards, I'll trade the breakoust of either the high or low of that channel. Sometimes, when I see that there's been a move for the last half an hour, either up or down, and more often that not, right at 3 pm, the move takes a breather. I'll then trade the high or low of the previous bar (I normally look at the 15 minute chart).
Yes, there will be losses. The important thing here is money management. My stop loss is always 27 pips per minilot. Sometimes, if I'm stopped out at the 3 pm trade, I allow myself to enter again after 6.05 pm. If I lose again, I don't try until the next day, 3 pm. Sometimes I get a bad week. I might Monday through Friday, and only get a win on the following Monday. But I can handle the pressure of that now. No system is perfect. As long as I stick to my money management rule, I'm fine.
What I do is, right after 3.05 pm (GMT+8), I look at the GBPUSD chart and place breakout trades. It's not a hard and fast rule of from what time I create the channel. It depends on the look of the chart. If there was a big move early in the morning, and things only consolidated from, say noon onwards, I'll trade the breakoust of either the high or low of that channel. Sometimes, when I see that there's been a move for the last half an hour, either up or down, and more often that not, right at 3 pm, the move takes a breather. I'll then trade the high or low of the previous bar (I normally look at the 15 minute chart).
Yes, there will be losses. The important thing here is money management. My stop loss is always 27 pips per minilot. Sometimes, if I'm stopped out at the 3 pm trade, I allow myself to enter again after 6.05 pm. If I lose again, I don't try until the next day, 3 pm. Sometimes I get a bad week. I might Monday through Friday, and only get a win on the following Monday. But I can handle the pressure of that now. No system is perfect. As long as I stick to my money management rule, I'm fine.
Monday, March 2, 2009
The Strategy
Time: GMT+8
GBPUSD breakout of 8 a.m. - 3.05 p.m.
Will enter when high or low is breached. I usually enter between 2-4 lots. For the first 1 or 2 lots, I'll take profit at 100 pips, remember to breakeven at 50 pips. 3rd lot to TP at 200 pips, and the last one the let run.
If the trade after 3.05 p.m. is closed, especially if it broke even, I'll try again at 6.05 p.m. Same rules apply. If the 3.05 p.m. trade was a loss, I'll re-enter the next day.
GBPUSD breakout of 8 a.m. - 3.05 p.m.
Will enter when high or low is breached. I usually enter between 2-4 lots. For the first 1 or 2 lots, I'll take profit at 100 pips, remember to breakeven at 50 pips. 3rd lot to TP at 200 pips, and the last one the let run.
If the trade after 3.05 p.m. is closed, especially if it broke even, I'll try again at 6.05 p.m. Same rules apply. If the 3.05 p.m. trade was a loss, I'll re-enter the next day.
6 months time
Here's a goal I've set for myself. By July, I would like to have to option to quit my day job. I might not really quit, but just to have the luxury to choose to do so feels much better. I might do something more relaxing and fun perhaps, since my income will come mainly from forex.
All I need is to keep up my current performance, and stay very, very disciplined.
All I need is to keep up my current performance, and stay very, very disciplined.
Am back
I've taken a long break, due to a few reasons. The financial crash in mid-September changed the way currencies move. I took a step back to evaluate the shift, and got back in when cable settled down enough. I've adjusted my strategy now. Instead of taking it at 50 pips, I'm now able to take profit at 100 pips. Cable moves in larger volume now.
I didn't want to post anything until I'm sure that the strategy works for the current market, and now I'm quite confident to put it up since it has yielded me good results recently. Will post daily trades now.
I didn't want to post anything until I'm sure that the strategy works for the current market, and now I'm quite confident to put it up since it has yielded me good results recently. Will post daily trades now.
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