My Own Made Trading System

Hi,

 

I hope someone more experienced can guide me to constructing a decent simple trading system.

 

I am an intra-day trader mostly trading 15 min timeframes on the Eur/Usd only. I look at the swissy and cable for correlations only.

 

My main trading analysis is based on previous supply and demand zones on the 4/1/30 min timeframes I look for confluences.

 

I go with the trend always. I use a point based rating system which I base my risk to reward ratio on. The more evidence I have to enter a trade the more I risk but no more than 3% of total account. I look for 2 profit levels 1 at 20 points and 2nd at 40 points moving my stop to breakeven after 20 points as capital preservation is my number 1 goal even if it takes longer to become profitable.

 

I wait for a rally in price and wait for a double top/bottom enter on a retest of the high/low's at the necklines and look for candlestick formations. I use Fibonacci cluster zones from the W/D/4/1 and also pivot clusters I increase/lower my risk when I see weekly or monthly pivots approaching price.

 

I use the 5 min chart to get a more precise entry/exit/stop price and warning for the 15 min timeframe. I use the 1/4 for the current trend look at the last few candle bars.

 

My arsenal of tools are: harmonics ABCD, Psychological Levels RSI, MACD, MA's, Trend lines, Pin Bar Reversals, Bolly Bands, Alligator.

 

I also use a couple other systems within my own strategy if they confirm if I add them on if they don’t I leave them. I use the Pip Accumulator with trend probability, Siddus System, SRS Trend Rider and Ultra Trend line system as extras.

 

I do not clog my chart up with all these indicators and price action points but keep them separate to make it naked as possible.

 

Personally, I like the idea of going total naked using support and resistance only, but it makes me shiver that I haven't done my analysis properly I am comfortable on the idea that there is a confluence/cluster zones rather than only S&R zones.

 

The only areas that I feel I can improve on is moving to the 4 hour charts I would like to, but I can't wait that long I would rather be stopped out in 1 hour than waiting 4 hours for a winner sorry but that's me.

 

I am reading as much as I can about price action and watching tutorials learning new things, but I am at my wits end about to pack it all in as it’s not working for some reason yet I have a glimmer of hope as my account is not blown up yet. I do get burnt out on most days with information tried to take a back step but trading is far too attractive to stay away the computer for a few days.

 

If anyone can add or erase anything that you feel will help my system feel free too as I am out of ideas.

 

Thanks for reading.

MHO .. simply ..

 

The time now could be spent in searching out and joining LIVE TRADING ROOMS ...

Compare their trading methodologies with your ' owned system' and adjust accordingly.

 

Hopefully, members can list out their opinions on such rooms.

 

Good trading wishes

Most of them want you to ditch your own system and go with theres and the experts in this industry say design and adjust your own to your own personailty who do you believe?

Most of them want you to ditch your own system and go with theres and the experts in this industry say design and adjust your own to your own personailty who do you believe?

 

Agreed .. as I also stated...

" Compare their trading methodologies with your ' owned system' and adjust accordingly. "

 

Thus their entries and exits will allow you to fine tune your 'own ' system that you as a trader has so hard worked for ..

of coarse, this allows one to fine tune accordingly and put forth a possible new trading strategy adaptation that as you wisely mention

"adjust your own to your own personality " and always simplicity will become one's outcome to success.

 

Many new 'patterns' I have adapted constantly and slowly increased my profitability ..

Thus I never really stop in learning ..

 

Basically, constant room for improvement ..

Thus, over the years my trading has improved by high %'s ..

 

All are MHO's .. that were taught to me a few years ago and I follow them accordingly .. works for me ..:)

 

All might seem theoretical to most newbies, but it is really very real fact and effective .. again, to me ...

 

It is all about trading LIVE markets .. all else are theorems ..

 

Give me any past chart .. and with a few time frames, I can show you hundreds of 'methods' that work .. on dead static charts .. thus the disparity on the eBayers/marketeers of the world .. but the true 'acid' test is always LIVE ..

 

And I have never been shy to show my end of month statements , as they are the absolute proof, not just the spurts and hide all else.. as most do ..

 

Good trading wishes

Edited December 10, 2011 by Marchello

Hi,

I believe the reason why you are struggling is that you don't trust your system.

You over complicated it with "tons" of indicators, price patterns correlations multiple time frames etc. You use no less than 4 complete other systems to validate your entries. On smaller time frames I can't think of a better way to get into "analysis paralysis".

 

Now for the system itself I would start over with its design. Chose a minimum of indicators you feel comfortable with, that you trust and that you had success in the past. Experiment to see how they work together. You don't need all the planet in the galaxy to align to enter a trade. You don't need 4 complete and different systems aligning to enter a trade. You can even try trading only 1 pattern that proved profitable for you in the past and your trading will improve.

Of course you will have losses. It is said that with the right money management a system must work 50% of the time to be profitable. I don't know about that but I know that if you can make it to 60-70% you will be profitable

 

Now the most important part. If you're trading live switch back to demo. The amount of money in your demo account should match the real account. It's no point trading with 50000 usd in the demo account if you only have 5000 in your real account. 2% risk per trade is enough.

Set a a daily target ie I will make every day 50 pips or increase my account by 2, 3 or 4 % daily. Once you reach this daily target you stop for the day. Period. If you don't reach your target and you struggle with several loses in a row you stop for the day. Practice your system in live market conditions as if you are trading the live account.

 

Set up a target a for yourself to be reached before going live again ( I will make 1000 usd with a 5000 account or I will double my account) This will ensure that you will be constant profitable and will know and trust enough your system.

If some of my suggestions will help you I'm glad.

increase my account by 2, 3 or 4 % daily

 

you can do this consistently ??

With a 2% risk per trade a 1:1 risk ratio successful trade will increase your account by 2%. To mitigate risks you might risk even 1% per trade so you'll need 2 successful (consecutive trades) to achieve your target. And you can do this with 30 pips of profit per trade. You don't need 1000 pips for that.

It's about discipline, math and money management.

You have combined systems that by themselves should work just fine and greatly simplify your approach. Trying to find confluence between 3 different times will drive you crazy. Why not use a single higher time frame to confirm trend direction since you mentioned you trade with the trend only and use a single smaller time frame for your entries & exits. You have way too many tools that you are trying to use. This will make you second guess your decisions to enter a trade. Simplify and master a few of the tools and use those exclusively.

"Personally, I like the idea of going total naked using support and resistance only, but it makes me shiver"

then take some fur coat because shivering during trades is distraction which cost money. Ha, ha, ha...

Remember: the simplest idea is the best one because valid is always simple in the nature! Make it simple as possible.

You over complicate because of insecurity. If you don't trust your strategy don't trade it! And as always all ideas test on DEMO first!

Cheers Hermes