Fine Tuning My Trading Strategy and Reviewing Pro Strategy

Gerd Altmann

Trading, as I have learned, can be quite the challenge to master.  It seems real simple after watching some videos and then making some trades and winning.   But turning it into a conistant money maker where you can count on yourself to make profits in the market is a real challenge.

I have gone through some days with 100 % win ratio and then followed that up with loosing lots of capital.  Needless to say I got quite frustrated.

When frustration happens I have learned to just step away and leave it for the day.  It is not a good idea to trade unless you are in a good state of mind.  And if the market goes against you it can trigger lots of frustration.

So the start of today I was determined, once again, to get it right.

I decided to limit myself to one trade per day.  So this way I would force myself to do some decent research before jumping in on a trade.  As it turns out, sometimes seeing a good trade coming your way is actually a bad thing...cause it can make you excited and want to jump the gun.

So I decided to limit my currency pairs to just the Majors (8 currencies with USD) and to look back at the previous 12 hours of charts to analyze what I could have accomplished in the trades.  Of course hind sight is easy, but analyzing 7 charts is a good way to really focus on the patterns that happened up to the winning trades.

The first thing I did was take a look at a set up for a trade based on Pro Strategy, because this is one of the most frequent, where at least once per day the pattern is there.

So I skimmed through and found this set up on EURUSD Feb 6 at 17:00 UDC:

So then I took a look at GBPUSD to see if the same thing was happening at 17:00:

So this candle was not an exhaustion candle, however it is a large candle with a tail.  I wouldn't trade on Pro Strategy just looking at this one candle only.

On to the next pair, AUDUSD

This one is showing an exhaustion candle at 17:00 however the tail is not hitting the pivot point.  However the candle at 15:00 has a tail that goes through the pivot and is also close to being an exhaustion candle, the tail ratio is at 53% (yes I actually measured cause this is serious stuff).

On to the next currency, NZDUSD

This guy is almost showing a doji at 17:00, however the candle at 16:00 is a decent exhaustion which supports my initial thinking of a buy on these first 4 charts.

On to USDCAD (which is an inverted chart)

We can see on USDCAD that the candle on 17:00 doesn't indicate much and the candle at 15:00 shows some sign of a slight trend reverse.  But this chart does not do much except not oppose the trade idea...its more or less neutral, and considering its at a 30 day high I am not expecting much movement vs the USD which is the biggest player.

On to the next currency, USDJPY

This candle at 17:00 is almost an opposing exhustion candle, however it turned out to have tails on each end and not near 60% tail either.  As well  the candle pattern from 15:00, 16:00 and 17:00 all combined together are typical trend reversal patterns so this supports the original trade idea.

On to USDCHF

This one does not have an exhaustion candle either, however it is showing signs of a trend up that has run out of energy.  So for this trade evaluation I will say that it supports the original trade idea.

Now lets take a look at what happened in the next few hours...and see if the trades would have won or not, well look at the next three hours for all currencies:

This guy shows us that the Pro Strategy worked.  A total pip reward of 560 pips on this chart, from the open of the candle at 18:00 to the close of the candle at 20:00.

Next chart:

This one shows over 600 pip reward as well....on to the next chart...

92 Pips on this guy...on to the next one...

196 Pips on this guy...next...

For the one below, we are going to the next pivot line...cause that is how it works...

379 pips....next...

229 pips...next...

318 pips

So that is the total for all currencies...adding them up we get over 2300 pips.  Not bad.  And considering 1 lot on each pair is approximately $1 per pip, then we would have had a profit of $2300 on this trade.

 

David bought his first bitcoin in Nov. 2017 and has been learning and sharing about cryptocurrencies, mining and trading ever since.

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