Ending Week on a High Note
December 9, 2006 by Trader Rich
Posts were a little light this week because I was busy trying to put together a solid backtesting infrastructure, not the pieced together one I've been using. The backtesting infrastructure is 75% ready but now I have to write the code that will be the base for all backtests in the future. I'll be busy with this probably through next week.
I ended the week on a positive note, taking 48 pips from the market this morning. I'm up 78 pips in December so far.
I stumbled upon a strategy in my head that is a derivative of the H-system yesterday. The results from manually backtesting from 2005 until present are promising. The results are pretty realistic because a trade can last days and isn't affected by the short-term swings in the market. It produced over 2700 pips of profit using 1 lot trade simulation over 18 months. I have to do some more testing though. I can't tell you how many times I thought I had a winner on my hands only to find out I missed something.
I was surprised by my own H-system trade results over the last 3 months. 33 trades, 63% winners, 725 pips of profit. http://www.forexproject.com/H_Trading_System/
Simon had the following comment which I can totally relate to it. Do you have a habit of getting spooked and closing out your trades before they've hit your predetermined profit target? I do sometimes. Actually, it happened this morning. I got 48 pips but I should have had twice that. Thanks for the comment Simon.
"I know exactly what you mean. My own current struggle is about NOT
doing the things that I KNOW are wrong. For some reason though, I just
keep on doing them.
Last
night I got in at a super position on the EURUSD before the big
downpush in London, and I made 15 pips but then as it began to stall a
little I did my usual mistake which was to get spooked and grab my
profits. Then of course it pushed on down about 40 pips more. The
currency did exactly what I thought it would do, but meanwhile my
trade-brain is doing other random out of control actions.
One
strategy I am starting to lean towards to stop myself is to go in, set
my stop, then DONT LOOK AT THE CHART until an alloted time later, like
2 hours or something. Once my position was on I was like "GO OUT
NUMBNUTS, GET AWAY FROM THE COMPUTER! YOU WILL DO SOMETHING STUPID! YOU
CAN'T BE TRUSTED!"
But I didn't, I hung around watching it obsessively and sure enough I shot myself in the foot again, the same way I always do.
It
is also a CLASSIC mistake "taking profits early". Luckily I no longer
do the other side of the mistake which is "letting losses run"… And I
do NOT move my stops.
The above said, I didn't beat myself up too much, because I still made 15 pips and my daily goal is 20.
My
other big idiot mistake at the moment is that I am a little trigger
happy and if I suddenly see something lining up I'll just pull the
trigger and abandon all of my rational system based mentality.
9 times out of 10 they go wrong. SELF CONTROL!!! I NEED MORE SELF CONTROL!!!"
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how about automated trading ?
by the way which trading pltform are you using? oanda, metatrader?
also how much are u getting for all these advertisements ?