Forex Trading Reflection: 2019 December

Forex Trading Reflection: 2019 December

Queenie Wu

Trading routine:

Step 1: Read commentary on tradingview.com; investing.com; fx168.com

Step 2: Set trading zone by considering the support and resistance level in DAILY chart

Step 3: Check daily diagram for the key levels

Step 4: Use support and resistance indicator and the TMA channel indicator

Step 5: Follow the trend direction in the higher timeframe and use the lower timeframe to enter.  Confirm with Ideal Trend indicator on different timeframe

Step 6: Consider the current location and the strength of the candlesticks

Step 7: In H4 or H1 diagram, enter market only if all the indicators are showing the same direction (after checking the candle strength)

Indicators used:

THREE time zones, Zigzag, Ideal Trend, TMA channel, RSI 3TF, FTrend, Pivots

Currency monitoring:

Mainly EURUSD, GBPUSD, USD Index, EURUSD future, GBPUSD future

Strategies:

1.      Small reversal strategy: e.g. At the ceiling of the TMA channel channel -> Sell

2.      N buy and N sell: set Buy stop or Sell stop at the breakout level

3.      Trendy strategy:  Place order based on current strong trend, using FTrend indicator.  I am thinking how can I use the trendy strategy to conduct carry trade to earn.  Still under investigation.  

4.      US session 15:00 strategy

5.      Pair trading strategy: Trade EURUSD and GBPUSD at the same time.  Still under investigation

6.      Grid strategy: Tried DPG EA in demo account for several months.  Grid EA can generate high profit in short period of time, but as we all know that “high risk high return”.  If there is a long trendy market situation happen, the grid may fail finally.  Must consider the RISK involved!!

Reflection:

This is a very good exercise to write down my trading strategies used every week.  Generally speaking, the small reversal strategy’s winning rate is very high.  Only one or two trade in a week.  Enter the market close to the ceiling of the TMA channel after the confirmation of the reversal happened is a very good strategy.  The necessary condition for success is PATIENCE!! In real trading, it is really difficult to keep the trade open and wait for the TP level.  I am so IMPATIENT to wait.

Another concern is the timing problem.  As it is impossible for us to monitor the indicators all the time, we usually missed the best timing to enter / exit the market.  Maybe using EA trading could be a possible solution.

Targets:

1.      Improve the skill of small reversal strategy.  Train up the patience of waiting

2.      Test the use of iCustom EA.  This can help trading with customize indicators

3.      Spend some time to test the 15:00 strategy.  This is a good strategy worth to test

4.      Time is insufficient.  The only method to automate the FOREX trading is by using EA!

Summary of 2020 Jan performance: 0.1 Lot EURUSD

Backtesting of 15:00 game 2018 Q4 XAUUSD: 60 TRADE 45 WIN winning ratio = 75%

If the trade lose, let's immediately do reverse trade with double lot size, win 100%