TraderGav.com

Gav's trading blog - Perseverance, Consistency, Confidence

Trading Journal

Kinda frustrated…..

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I bagged some 60 pips profit from short EUR/JPY, and watching Short GBP/JPY reached 96 pips profit (target was 100 pips). I ended, losing 20 pips in GBP/JPY short position, and went long. And …I got stopped out by the wild 20 pips spread ! This is a shitty situation. I am fine with the vanished 96 pips paper profit, since I was targeting 100 pips, but, I just can’t accept my long position got killed by the spread.

Well, that’s the fact that I have to accept since I am trading with bucket shop.

On the bright side, GBPUSD hit 2.0, and I am holding long position. Let’s see if I can end the day with some good pips.

Dummy day trading #67,#68,#69 NQ Long trades closed

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I have made 3 long trades on NQ futures today, one during opening, 2 trades around noon time. Tough all trades were profitable with very small trades, I don’t feel I was making good trade. I failed to hold on winner which would definitely give me bigger profit.

End the day with +2.23 R gain.

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TradeStation Newsletter

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Interesting, TradeStation starts sending newsletter “ TradeStation’s Trader Digest & Weekly Newsletter” to customers. The first edition, they tried to explain/emphasize their ‘superior’ Data network.

Myth:
TradeStation’s market data lags the market.

Fact:
With all the users we have researched that have reported this issue, we have found that, in every case, the user’s computer has been unable to receive the amount of data the user needs at the rate at which the user needs it. The computer deficiency has been caused by any number of factors including computer hardware, configuration, internet/network connections or software that is loaded. As a result, this gives the user the perception that TradeStation’s data is slow.

Well, I don’t have too many complaints about TradeStation, though I do meet some hiccups once in a while, like frozen chart, hanging platform etc. I always feel amused when reading this kinda self-promoting newsletter. Maybe, they should work harder and build the reputation. Compliment from a real user worths more than 1000 issues of self-promoting newsletters.

Anyway, for day trading futures, TradeStation still provides me a good trading platform and a cost efficient package (competitive commission, lower data fee, free software when you meet trading quota , i.e 10 round turns futures trade). But, do learn some tricks from experienced users (like clearing the software cache frequently).

Trading with bucket shop (Market maker)

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If you are new to Forex trading, fancy about trading in mini account with only $200 or so. Here is something to show you. This is not something new, seasoned Forex trader should be familiar with this.

430am ET, we have U.K Trade balance report, I decided to capture the changing of spread of GBP/USD and GBP/JPY provided by one of the broker I am using.

Look at that, the spread actually jumped from 6 pips (2.8 pips for GBP/USD) to 20 pips, and after 1 minute, it went back to 6 pips (2.8 for GBP/USD) . This problem has been widely discussed/complained in forums. But, there is nothing much you can do if you choose to trade with bucket shops (market makers)

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This is just one of the examples, there were complaints during the last NFP (Non Farm Payroll), where spread actually went up to 200 pips!

Look at that here

So you wonder, why your stops were taken out? Maybe you need to have a closer look on this issue. This another reason I am planning to move to ECN broker after growing my small account.

Updates and my Forex trading plan

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puond_sterling.jpgI haven’t been posting much this week. In fact, I did not make any futures trade this week. I have been actively trading Forex, and finalizing my risk-plan (Risk Management is a big word to me, I don’t like this term). It is basically a spreadsheet which controls my position sizing for every trade. Since I am deploying SAR (Stop and Reverse) strategies, I need to be extra careful to avoid burning my small account.

I will see if I am able to extract a template of my risk plan and share it here later.

I made a number Forex trades this week, but I am not going to post every single trade here. Well, to surprise you, I am not trading Forex using any technical analysis stuff, and not even chart. So, it will be nonsense to post my Forex trades here, a weekly review makes more sense.

Basically, here is my trading plan of Forex trading:

  • Get Long/Short signal from my system (I am running both Weekly and Daily systems)
  • Calculate position size by using risk plan. I am risking 3% per trade, and using compounding effect. So, I will increase my position size when my account grows, reduce position size when experiencing draw down.
  • Put in stop loss order and take profit order simultaneously when establishing position. And put in reverse order with appropriate position size according to risk-plan.
  • No trailing stop. Exit position by Take Profit order/ Stop loss order or by cut off time (part of system definition).
  • No limit of numbers of trade to be taken, since position size is taken care.

That’s it. That’s my Forex trading plan. I am trading live accounts now, of course, relatively small accounts. I am having two separate accounts with same trading capital each for weekly and daily systems. I would like to see how long do I need to double my capital, and compare performance of the two systems.

Now things are almost settled, I will start executing Forex trades and focus on Futures trading again.

May the pips be with you.

Again, real man trades futures, his son trades Forex, I am trading both, for my wife 🙂

 

No futures trade

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Maybe I am fated not to trade futures today. I am having couple of problems with Tradestation as mentioned in my Twitter. First, charts were frozen, right before the sell off.  So I missed the sell setup. Secondly, my OSO orders was rejected when I was trying to short NQ, and, it did not cancel my BUY stop order !?!?(the stop loss order). I was lucky enough to find out that earlier and cancel it manually.

I am going to clean the cache of Tradestation now. I guess, I am not going to trade futures today. I have a couple of FX positions now.