Tuesday, July 30, 2013

Week in Review: 22nd July to 28th July 2013

Discretionary daytrading with confluence

I spent most of July trying to daytrade with technical confluence. My overall result was mixed. As time passed, I also tried to include fundamental analysis by looking at the news and economic figures. But how do you make sense out of it all? This isn't something that you can backtest. Anyway, once I encountered the inevitable losing streak, I didn't have anything "solid" like backtest results to restore my confidence, so I bowed out. I also found that daytrading isn't a healthy lifestyle. If you're trading the 1H chart, you set your life by the hour, with your alarm going off every 60 minutes while you're awake. Long-term, that is not feasible.
On to last week's trades. I opened two trades using my Hermes and Daikoku systems.
GPBUSD - 1D - Hermes Low Volatility System
This trade was triggered on the 24th July and closed in profit. I used a 0.5:1 reward:risk ratio. Anything larger than 1:1 and I would've been stopped out. Trust your backtest.

EURUSD - 1W - Daikoku Low Volatility System

This was a trade on the weekly chart using my Daikoku system. Spotted a low volatility candle and traded the break of its high with a 0.25:1 reward:risk ratio.

System Development - weekly dojis

I spent the last week backtesting dojis on the weekly chart. A pic of a doji is below. It's basically a candle with a very tiny body in the middle. It suggests neutrality or indecision.

I haven't had any success testing dojis on the daily charts or below, but dojis are surprisingly profitable on the weekly chart, so far. I've tested the GBPUSD, NZDUSD, AUDUSD, USDJPY, USDCHF and USDCAD and so far the results are very promising. I hope to finish the EURUSD tonight, then move on to gold and silver.

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