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Risk Management: A Trading Journal

Post_Tropical (Post_Tropical)
Nov 28 2014 at 14:47
22 posts
growthera posted:
Hi Kurtis, I always like it when traders start a trading journal so we see what goes thru their minds. Some comments on your rules. I agree winning is more about not losing big, and the account somehow will go up. I am surprised to see in your rules such a tight dynamic stop. Everybody has different trading styles of course, but I would think with such tight stops you would get closed out all the time just when some official sneezes. It's tough to provide genuine feedback on your trades, since your history is private. I would suggest if you want a real discussion on your trades you should show them. Anyway, keep up the journal and good trading!


@growthera I believe you are on to something, but I wouldn't know because I don't look at the chart after I enter a trade and after the exit. Maybe I should. HAHA.

I'm still learning and I'm thinking about using the ATR indicator for setting my stop loss. What do you think?

There are 2 rules for being successful. Rule 1, never tell them everything you know.
Post_Tropical (Post_Tropical)
Nov 28 2014 at 15:35
22 posts
I unlocked my trade history for those that are interested. 😁

There are 2 rules for being successful. Rule 1, never tell them everything you know.
growthera
Nov 29 2014 at 11:51
86 posts
yes, I believe ATR is relevant. Lower ATR, lower stops, as long as you have some way of also looking at potential short term peaks. Why would you not look at your chart after exit? I know its game over for the trade, but every trade is a learning experience for the next trade. Why would you want to not take that chance? I guess you are trading a fixed system, so short term does not matter. I would still do this as in future you might want to have your system evolve. Not second guessing your system at every trade, but just a process of system improvement over a long series of trades...
I also trade a fixed system, and so 5 losing trades in a row is not going to make me change my trades. I do continuously look at upgrading my system (but I use 500 trades for that). I still look at the charts, there is just no way to understand your own system too well. The better I understand my system, the more confident I am in drawdowns.

Post_Tropical (Post_Tropical)
Nov 29 2014 at 16:18
22 posts
Here is my trading environment including indicators, I recently added ATR.

Attachments:


There are 2 rules for being successful. Rule 1, never tell them everything you know.
Post_Tropical (Post_Tropical)
Nov 29 2014 at 16:29
22 posts
growthera posted:
yes, I believe ATR is relevant. Lower ATR, lower stops, as long as you have some way of also looking at potential short term peaks. Why would you not look at your chart after exit? I know its game over for the trade, but every trade is a learning experience for the next trade. Why would you want to not take that chance? I guess you are trading a fixed system, so short term does not matter. I would still do this as in future you might want to have your system evolve. Not second guessing your system at every trade, but just a process of system improvement over a long series of trades...
I also trade a fixed system, and so 5 losing trades in a row is not going to make me change my trades. I do continuously look at upgrading my system (but I use 500 trades for that). I still look at the charts, there is just no way to understand your own system too well. The better I understand my system, the more confident I am in drawdowns.


I don't look at my charts after exit because I let my system execute my exits for me. It makes it easier for me not to interfere with the system if I don't look at it every minute.
I do however look at the stats on the trade on fxbook. This will gradually change as I become more comfortable with my system. Thanks again for the input @growthera

There are 2 rules for being successful. Rule 1, never tell them everything you know.
Cholipop
Nov 30 2014 at 00:49
406 posts
A stat that I think myfxbook SHOULD HAVE front and center is Avg Pip - Drawdown. A stat which you can find the avg of as long as the inputted % data is higher. So example you could have a avg Pip - drawdown of 5 pips, but with lots larger then 2.00 your avg is 38 pips. :) Instead of only focusing on Pip drawdown... Why not focus on the AVG of pips you give to the market. I trade using a dead chart. No need for any indicator, as no indicator can tell me if the next candle will be green or red, much less engulf the last candle. :) The simplest and most accurate form of trading is using engulf entries. When you exit on engulf you are ensuring yourself that you won't be on the wrong side of the trade.

Post_Tropical (Post_Tropical)
Dec 03 2014 at 01:28
22 posts
Refined my system a bit more. I now only trade 7 crosses.

EUR/USD
USD/JPY
GBP/USD
USD/CHF
AUD/USD
USD/CAD
NZD/USD



There are 2 rules for being successful. Rule 1, never tell them everything you know.
Post_Tropical (Post_Tropical)
Dec 05 2014 at 03:55
22 posts
@growthera you will be glad to know that Ive started writing down my trades in a journal. Haha. Makes it easier for me to analyze my trades when i'm at work.

There are 2 rules for being successful. Rule 1, never tell them everything you know.
Post_Tropical (Post_Tropical)
Dec 08 2014 at 04:00
22 posts
How many trades does a system have to make until a trader can be satisfied that it works?

Over 200 trades and I believe my system works and I don't focus on fancy indicators, complicated math or economic news, my system is 90% risk management and 10% technical trend following.

I would love to hear your thoughts.

There are 2 rules for being successful. Rule 1, never tell them everything you know.
growthera
Dec 08 2014 at 10:58
86 posts
I look at statistical significance, so it surely depends on number of trades, but also standard deviation. 200 trades could be ok, but is linked to other system data as well. Keep in mind also the market conditions at which these 200 trades are made. Is it in a wide time range of different market conditions and traded instruments, or all within 6 months on 1 pair is not the same test of course.

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