Killer Forex Trading Methods post comments and questions about the course
03/05/2010 22:03:18
Tom Leeson
Administrator
Posts: 661
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Trading Approach
Learn the system
backtest
practice
drill
chart mark up
journal
SIm trade
assess go lvie or go back to drawring board
no other way
Write the trade plan never ever deviate from the trade plan ever during trading
you make notes as a strategist and paly with alterniative shadow strategies and compare journals -
do this on a seperate PC in a seperate account to keep stats pure
If you cannot follow this recipe to beceom hugely successful then you are wasting your time - this is the cross roads
you feel you got somewhere - you feel empowered - it is an illusion - you follow the system and live trade for 1 month - and run a shadow strategy alkongside
What is your account stop loss - 35% maximum is a Hedge Fund norm. - this is the amount i stopped after a drawdown of 35%
Loss is all you can control - a stop - you know that - a target or profit is unknown and assessed monthly...
The art is to find a system that works...do not change it...increaas your position size and use scaling in and out on multiple targets
You take a slice out of the market move - you do not chase more money as the system does catch the whole move... that is a fools game... you plan ...you learn the rules...you use the rules...
LIVE TRADE
You need a line in the sane
no hope
no should i, could i, did it, will it, shall i,is it - those are not rules - those are emotions that will turn you into a bust or jsut a useless normal average public reatail trader - a joke
do it, set it, mopntiro it. follwo the rules
DRILL THEM NOW for Long, short....
Warm up and practice trade -
chekc that now huge news is out
create a list of the most imporatnt days of the month to avoid -
have a day off on
Non Farm Payrolls
Fed Decision,BOE, ECB
Options Expiration day
you have to demonstrate you can use your lkearning on the sim in live.
The Rules of Engagement
1#Prove you can use this system to live trade with. Do not change it. 200pips per month is fine.
2#Once you have proven ytou are not a mentalist with live trading - you will receive a slightly more sophistacted system - which will cath the 100 point moves - but will have a rigid set of rules
It is rather simple -we use position scaling....
#3 we will also write and test rules on 3 years of data to prove any proposed alteration to the system.
THE SYSTEM Philosphy
Reversal patterns at levels of support or resistance - (also another view point is a pull back to go long or short with trend - a B or C trade)
Continaution - (We do not use continuation trades - as the students are not advanced enough to handle them and will confuse the rules - this can be views as b or C break - which will pullback to a MA such as 20SM - to mark the setup and entyr is a candle tha then closes back with the break direction)
The Setup and Entry - has been vastly simplified to allow the student to learn how to trade consistently and prove they can follow rules
The point is - yes you will be taken out the trade early - unless the market has momentum to push real far and hit your target.
There is more to the systm to come - the test is will you abandon the simplest rule an 11 year old child can follow?
If you can we can produce more rules to the system to deal with....
pullbacks
continuations
break downs
high probabiliy breakdowns with sharp intraday trends
edited by tom on 06/05/2010
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MicroTrends tom
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