Thursday, March 5, 2009

3-5-09 Daily review

I definately had a better idea of my conscious thoughts for the day. I didn't get lost in negative mental feedback loops as much as yesterday. I think my biggest criticism for the day is that I had difficulty resolving conflicting signals, and this is most likely due to an incomplete definition for a few of those signals.

During my trading period there were 7 possible setups. 4 of these setups were invalidated for various reasons, leaving 3 valid setups, of which I took 1. The reason for that is that the other 2 valid setups were in possible conflict with other potential setups. If I had taken these other two setups my results for the day would have been +22 instead of -8 pips.

The first legitimate setup that I missed (I saw it I just didn't know what to do) occured directly after a potential ABC setup. Unfortunately that ABC setup was invalid because the signal candle formed a new resistance below the previous wave of resistance. This confused me into doing nothing on the next trade which was a valid 3LL short. The second legitimate setup that I missed was a valid ABC setup, but now I was confused on the exact entry for my ABC (due to the previous error). This caused me to miss the entry timing (again I saw the setup but didn't know when exactly to get in). And before anyone comments on it, yes I have extensively tested these signals, but this is the first time I am trading them all together (previously I only traded the LL/HH setups).

Some lessons/thoughts for the day:

1) For the ABC setup, the entry candle should preferably break above the previous S/R. If it forms a new S/R below/above the previous, then exit the trade at market.
2) Do not take a second ABC trade the same trend as the first (almost made this mistake)
3) Skipping disproportionate LL trades is good (I knew this already).
4) Skipping trades that are up against a strong well established S/R floor is a good idea (again I knew this)
5) Keeping my head screwed on straight - priceless (yes I am learning this still)

LT

P.S. most of these technical terms probably don't mean much without further explanation. What is an "ABC" setup? I will be covering my setups in a later post.

4 comments:

FX said...

From no posts to few posts a day!!! Now I read you several times a day :-)

Nice charts you are posting and nice explanations.
What software are you using? Are those tick charts (t89)? And which feed for that software, your broker or?

Lord Tedders said...

FX,

Yeah I tend to be an all or nothing person. Also, I have secretly missed blogging.

The charts are NeoTicker, and yes these are 89 tick charts (with 1 hour for perspective). Feed is eSignal, broker Oanda (they match pretty well actually).

LT

thelonelytrader said...

I see you are using NeoTicker now. Good for you. I use it for testing, but don't bother with it for my live feed because Oanda doesn't interface. :(

Have you tried working with Ninja as an interface with Neo? I've heard it's pretty sweet.

Lord Tedders said...

lonely,

Yes, Neo and Ninja work well together. But again no Oanda support for either. Boo.

LT