My trading journal

BZero

Private, 1st Class
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56
Disclaimer: This might not be an interesting thread to follow. There's no holy grail strategy to be learned here, I'm afraid. I'm only making this thread for myself, in an attempt to keep myself publicly accountable. My goal is to post every single trade I take. My hope is that this will stop me from deviating from my trading plan during drawdown periods.

I'm not gonna share the exact rules of my strategy here, but I'm basically trying to identify liquidity pools above/below SnD zones on H4 and place limit orders in those areas. I have an indicator that helps me quickly identify SnD zones, but it's not a 100% mechanical strategy. How far above/below the zone I place the order and how wide the SL will be both depend on a mix of mechanical rules and discretion. I can choose to ignore a signal for whatever reason, and if I get the same signal on several correlated pairs, I use my discretion to choose which pair to trade (or whether to split the risk between the pairs). For the most part I let the trades run to either SL or TP, but I allow myself to close trades early for whatever reason. TP is always set at 1.5R and I risk 2% per trade. I trade the 28 majors and their crosses.

I have deposited $10k into the account. Starting on monday.
 
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BZero

Private, 1st Class
Messages
56
Thank you. Not with a statistically significant sample size, no. But the backtest (done manually with bar replay on TradingView) looks very promising:

backtest.png


That includes correlated trades, though, so I don't expect the real equity curve to look that good.

Anyway, first update:

Trade 1:
GBPAUD short
Entry: 1.86793
SL: 1.87423 (63 pips)
TP: 1.85848 (94.5 pips)

2022-001.png
 

TareqS

Sergeant
Messages
180
Wishing you all the very best. I like your risk-reward and 2% risk in every single trade. This is what is recommended and I maintain personally as well. I look forward to getting some updates on this strategy. Thanks in advance.
 

BZero

Private, 1st Class
Messages
56
Tareq: Thanks. 1.5:1 RRR was chosen for this strategy based on the MFE I recorded for each trade during the backtest. 1.5:1 was the most profitable RRR in the long run. 2% is really the absolute max for me. Anything above that and the expected max drawdown starts becoming unacceptable.

Jimmy: I record all my trades in a spreadsheet. I don't really record my thoughts anywhere. As long as I simply follow my trading plan, there shouldn't be any thoughts to record on a per trade basis. Maybe after 25, 50 or 100 trades, I can evaluate how it's going versus what I expected based on the backtest.

For the discretionary parts (or if I ever deviate from my trading plan), I plan to use Tom Dante's "demon finder" (go to 36:49 in this video for an explanation) to evaluate my trading. I made my own version of the demon finder in Google Sheets:

demon.png


When the green rows start turning red, I'll know what my weaknesses are and what I need to work on.

Trade 2:
GBPJPY short
Entry: 156.658
SL: 157.168 (51 pips)
TP: 155.893 (76.5 pips)
SL hit. -1R / -$196.85
 

BZero

Private, 1st Class
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56
Trade 3:
AUDJPY short
Entry: 84.281
SL: 84.641 (36 pips)
TP: 83.741 (54 pips)

2022-003.png


Yes, the bid price hit the TP there, but the ask price did not. My discipline is really getting tested already.

Edit: TP hit. +1.5R / +$276.45
 
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BZero

Private, 1st Class
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Trade 4:
USDCHF short
Entry: 0.92131
SL: 0.92491 (36 pips)
TP: 0.91591 (54 pips)

2022-004.png
 
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