I’m going to post results of every trade I enter. I will start from when I created a new strategy on October 18th, 2016. When I open my real account I will do the same. In my blogs I will post my ideas and details about entries as best I can.
Currently, I am testing two strategies that both utilize the Simple Moving Average (MVA) indicator at 5 and 10 levels to signal valid entries. I will also use the Relative Strength Indicator (RSI), Stochastic Oscillator (SSD) and the Moving Average Convergence/Divergence (MACD) on my layout. I add in a few Andrew’s Pitchforks for kicks! (I love me some Andrew’s Pitchforks, but with my trading style, I need shorter entry/exit positions. It’s something I’m looking into for the future).
I will also use the news to my advantage but it is not particularly my strong suit at this moment. However, high level news will require me to exit before the results of the event are released. Price swings tend to be a bit wild during these times; flipping a coin would be less riskier.
I’ll call it the “Quick Breakout” or QB for short, will use short breakouts as the 5 and 10 lines cross along with RSI and MACD. These trades tend to last for a few hours to a day. For a buy entry, RSI must be below 50 and MACD must be going from negative to positive. Vice Versa for Sell position. The SSD will be used as a reference for entry and exit positions. The direction of the trend is not particularly important, but I use an MVA with 100 and 200 as reference to see if a longer trend may be in the midst!
I will always use a minimum of a 2 to 1 ratio when entering trades. My stop loss will always be located behind the nearest swing; however, if that is not enough room for my trade to breathe, I will use the next resistance/support level and if that is too great of a risk, common sense will be used to determine what is a reasonable level. In addition, but not so important, where the next .50 and .00 levels are will be watched along with each indicator as entry/exit positions. Lastly, I use a trailing stop loss fixed at the exact amount of the stop loss to eliminate any chances of losses if I missed a good exit position.
I NEVER risk more than 1.5% of my account. My weekly goal is a 2-3% increase of my account; won’t be upset if it is more though.