Today was a much better day for combined session results. POQ was the word of the day in both the London and U.S. session. One issue currently is the setups are a little tiny. Also, we are finding many trades with the stops inside the candles. This has much to do with:
1. the range the pairs find themselves in
2. many of the larger moves are happening outside our trading timeframe.
So what to do. For me, we are going to let this play out to see when the resolution in the market comes. We could start tweaking things now however great times, good times and bad times in trading come much like the waves in the ocean. Bottom line, the system still performs even when market conditions are not always the conditions you would choose if you could.
On a side note as I wait for the video to render, I am watching the EJ keep attempting to break above the 134.70 level. Even when it gets rejected, there is a regrouping and another run at it. It doesn’t quit. The EJ right now is teaching a valuable lesson.
Today was a tough trading day as we go through the charts. The London session didn’t fair too well and the U.S. session needed a little bit of work. The cable is causing a little bit of a challenge.
One look at a daily chart will tell the story why. By no means is the 144 tick chart the only chart you can trade. You may even want to slow it down a little. Many traders, especially in the U.S. session, are exposed to the 144 across the board so it made some sense to use that timeframe. Still, even though there are some challenges, the win rate is still above our 65% cut off. Anything lower than that on a large basket of trades…you will want to revisit your trading plan ESPECIALLY the timeframe you are using.
We are very strict in the setups we take as we move forward with this “project”. Filtering out “weak” candlesticks is one big filter we are using. Stops anywhere inside the candle means no trade. R/R must be in our favor. It never hurts to trade less. This video, the process of “too much” trading is covered. Account size and $/pip is one factor in why traders trade so often.
The London session was serving up some slop but as we all know, nice movement comes right after the mess. It was a short session for the U.S. as you took two painless trades and using POQ (power of quitting), you walked away a profitable winner. A 3 of 6 even comes into play. How’s that for working 1.5 hrs?
Once again, “trouble candles” have been highlighted and trades passed on. Why? The candles were indecision and when you get a group of them together, entering a trade is easy and so is drifting price action to your stop. Consider adding that filter to your setups. You will notice some nice moves down and although they are attempting to just jump on, check your trading plan. What is it EXACTLY you are looking for to signal a trade? When it presents itself…you take the trade. No if’s. That is being consistent. When I am not prepared to trade, my charts are closed. If I happen to see a setup that fits my parameters, by my trade plan rules, I MUST take the trade.
Here are up to the minute stats:
30 trades 76% Winners | Total Pips: 245 | $2450.00/standard lot
(Jul 20 – 28)
A tough trading day especially with the cable. The sideways action would have whipped you in and out of trades IF you were not sticking to a solid trading plan.
The EJ was trading quite nice post news. At 10:00 est, that all fell apart with some strong housing numbers. That said…our plan is precise. We are precise with stops. Precise with entries and trade management. We are even precise in the types of candles we like to see. Setups on indecision candles are not something I am a fan of. When you see low volitility candles, that can tip you off to simply stay out until moves occur. You don’t have to be the first on the ride.
Days like today are a real test to your trading psychology. You tend to deviate from a winning trade plan. You do it once and the trade is successful, you run the risk of running into the wall known as recency bias. That is where you focus on the immediate past as opposed to what really matters…the longer term. Every trader should know that it is never the small basket of trades that matter. It is the large basket where your edge has had a chance to prove itself. This is where most failed traders start. They deviate from their plan. Or, they don’t have a plan. Or, they buy system after system thinking that will be the ticket. It isn’t. Find a system you are comfortable with. Learn it. Trade it when the edge presents itself.
I am starting a project tracking the success (and failures) of the EURJPY and the GBPUSD. Both pair offer up many trading opportunities. Trading the UMT way also offers up many advantages.
Stops, targets and the basic rules can get you into winning trades, keep you out of losing trades and even decrease your risk when the market decides to challenge you. You don’t need to toss in a myriad of other indicators to keep you on the winning side. I actually use higher timeframes to “filter” the plays but this video will show you that the pips will still make their way to your account trading the system
The key really to any system is your trading plan. The method actually comes in last. You can use a basic trendline method or one that requires 17 different indicators. The choice is up to you. The crucial part of trading is sticking to your trade plan. Last week saw the EURJPY make a massive move during my session. Problem was, my criteria did not give me a setup to enter. Instead of just kneejerking in, I sat and watched it travel. The afternoon gave some great shorting chances though!
Anyhow, enjoy the video. The results are quite nice considering you are limiting your “screen time” to a sensible time. Really, did you get into trading to be chained to a desk?
This video took a while to produce but the results are worth it. Covering the London session, we are going to look at the GBPUSD on both the 144 and 233 tick chart.
This is the basic way to trade the software without taking into account several other “methods” that can get you into trades and also redemption trades. The software works, you just have to trade it. Take what you get from this video and start doing your own backtesting.
