Check Higher Timeframes

So I took a trade on the M5 chart for Fiber. I got a somewhat good Setup 1 signal but I did not check the higher timeframe.

I got stopped out of this trade. On reflection and checking if there was anything I could have done, I then saw that I could have checked the higher timeframe other than the M30 chart that I was using. I should have also checked out the length of the last up move to adjust my confidence.

The M30 showed me that the prices were in a range going towards the Alligator.

When I checked the H1 chart, it is even clearer (in hindsight) that the prices were in a range so my Setup 1 entry even though it was a valid setup was not the best entry position.

Lesson learnt: Check other timeframes before entering positions.

Sponsored Post Learn from the experts: Create a successful blog with our brand new courseThe WordPress.com Blog

WordPress.com is excited to announce our newest offering: a course just for beginning bloggers where you’ll learn everything you need to know about blogging from the most trusted experts in the industry. We have helped millions of blogs get up and running, we know what works, and we want you to to know everything we know. This course provides all the fundamental skills and inspiration you need to get your blog started, an interactive community forum, and content updated annually.

Useful MT4 Shortcuts

This is a list of useful MT4 shortcuts that I will need either during analysis or manual trading.

F1 — open this “Userguide”;
F2 — open the “History Center” window;
F3 — open the “Global Variables” window;
F4 — download MetaEditor;
F5 — switch to the next profile;
F6 — call the “Tester” window for testing the expert attached to the chart window;
F7 — call the properties window of the expert attached to their chart window in order to change settings;
F8 — call the chart setup window;
F9 — call the “New Order” window;
F10 — open the “Popup prices” window;
F11 — enable/disable the full screen mode;
F12 — move the chart by one bar to the left;
Shift+F12 — move the chart by one bar to the right;
Shift+F5 — switch to the previous profile;
Alt+1 — display the chart as a sequence of bars (transform into bar chart);
Alt+2 — display the chart as a sequence of candlesticks (transform into candlesticks);
Alt+3 — display the chart as a broken line (transform into line chart);
Alt+A — copy all test/optimization results into the clipboard;
Alt+W — call the chart managing window;
Alt+F4 — close the client terminal;
Alt+Backspace or Ctrl+Z — undo object deletion;
Ctrl+A — arrange all indicator windows heights by default;
Ctrl+B — call the “Objects List” window;
Ctrl+C or Ctrl+Insert — copy to the clipboard;
Ctrl+E — enable/disable expert advisor;
Ctrl+F — enable “Crosshair”;
Ctrl+G — show/hide grid;
Ctrl+H — show/hide OHLC line;
Ctrl+I — call the “Indicators List” window;
Ctrl+L — show/hide volumes;
Ctrl+P — print the chart;
Ctrl+S — save the chart in a file having extensions: “CSV”, “PRN”, “HTM”;
Ctrl+W or Ctrl+F4 — close the chart window;
Ctrl+Y— show/hide period separators;
Ctrl+Z or Alt+Backspace — undo the object deletion;
Ctrl+D — open/close the “Data Window”;
Ctrl+M — open/close the “Market Watch” window;
Ctrl+N — open/close the “Navigator” window;
Ctrl+O — open the “Setup” window;
Ctrl+R — open/close the “Tester” window;
Ctrl+T — open/close the “Terminal” window;
Ctrl+F6 — activate the next chart window;
Ctrl+F9 — open the “Terminal — Trade” window and switch the focus into it. After this, the trading activities can be managed with keyboard.

MT4 VPS or Own Hosting?

Like most people (I think so), I use a laptop for my everyday stuff unlike years ago when I used to have a desktop. The question that comes up when you have the trading dream is how to 24/7 monetise the holy grail when I find it? When you search online you will find options for Virtual Private Server (VPS). This will be either dedicated remote Windows server or the MQL own VPS service, or maybe something else.

Now I have looked at the option of using Microsoft Azure, Amazon and some other service to host my MT4/MT5 bots. But I have chosen to host my MT4 trading machine at home. The main reason for this is that I did not want to break the bank on this one so I went for a used pc which I got on Ebay. I bought an HP G1 600 mini pc for £130. The plan is to use this machine only for trade execution. For development and research purposes I have my Dell Precision 7520 beast with Xeon and 64GB RAM.

HP G1 600 Mini pc

The machine has good specs as seen below.

The only thing I changed was the hard drive, from 128 GB SSD to a Crucial 1TB SSD which I bought on Amazon for £95. I have tweaked the computer settings so that the machine does not switch off, and have disabled automatic restarts after updates.

Once I finished installing all the latest Windows updates, I also installed the MT4 and MT5 software.

Other Software I have installed:

  • Malware Bytes
  • Microsoft Visual Studio Code
  • Python

Trading Back in the Mix with Bill Williams Methodology

Anyone who has used MT4 will be familiar with the Bill Williams indicators. I discovered his methods a couple of years ago through my friend https://www.forexfactory.com/tafadzwa02

I am now thinking of dabbling with his ideas again. With Covid inspired lockdown and working from home there is time to do other things than commuting down the A14 or on the train to London. So what better thing to do than reboot/restart my trading ambitions.

I will be using the AIMS by Immy process which is a derivative of Bill Williams to do my trading this time around. I will still refer to the Bill Williams books. Immy also has a Youtube channel which folks can follow if they are interested in knowing how he does his trading.

Using AI to Trade Fx

I will be looking into using AI to make money in Fx. I will most likely be using neural networks. To that end after I finish playing round in the demo version on Alpari and having traded a bit I will embark on my holy grail journey.

Some of the websites I will be using include

http://neurondotnet.freehostia.com/index.html : C# neural networks engine

http://dynamicnotions.blogspot.com/ : a fella who is developing a neural network program to make money in horse betting.

I will of coz do more research on this topic but most people do not want to publish their ideas in the publish realm (and for good reasons as well) which might make the task onerous.

Good hunting to me then.

Trading Journal

When I was trading the equities I used to keep a trading journal of some sort in excel. Here are some of the fields you need to keep track of. I have happily copied most of the text from http://EzineArticles.com/?expert=Kelvin_Chan

If you are serious about trading successfully, you need to be keeping a forex trading journal. Your trading will see drastic improvements pretty quickly when you start keeping a journal because keeping a trade journal sends signals to your entire being saying that you are serious with whatever you’re doing.

#1 – Record Date and Time of Trade
This will help you refer back to the charts and see when you entered and exited the trade

#2 – Record Currency Pair and Direction
Record which pair you were trading at that time … be it GBPUSD or EURUSD or whatever. Also record if it is a long or short trade. E.g LONG EURUSD

#3 – Record Your Trade Entry Price
This is a no brainer … I personally use Excel for this.

#4 – Record Your Exit Price For Your Trade
The difference between your exit and entry price will determine whether your trade is a profitable or loss trade.

#5 – Record Your Trade Size
In other words, how many lots did you take on that particular trade? If you’re trading in mini-lots, record that as well.

#6 – Record Your Nett Pips
Record in numbers … That way you can see your trading performance at a glance. E.g -22 pips or +34 pips

#7 – Record Your Nett P&L
Make a record of how much you made or lost with that particular trade in terms of dollars and cents. By doing so, you can see which are your biggest losers.

#8 – Record If You Were Trading Countertrend or With The Trend (Optional)
I’m personally very detailed and so I record this sort of details as well.

#9 – Trading Session
If you like you can also record the session you were trading in such as European open or Asian close.

#10 – Screenshots (Optional)
Sometimes it will really help when you take screenshots of what you saw at that time you entered the trade.

#11 – Additional Remarks
This column or detail is good for recording how you felt about the trade (before and after it)

You can use your favourite document editors such as excel or word for logging your trades. Ok, this pretty much wraps it all up. Reading all these doesn’t help you as much as actually doing it so if you’ve not been keeping a trading journal, why not do so right now?

 

Article Source: http://EzineArticles.com/?expert=Kelvin_Chan

Back in the mix

After taking a forced sabbatical from trading I am now back. I am now turning my attention to forex trading purely because I think I am not a day trader person.

I have been using the very informative forex website www.babypis.com which even has a couple of logically arranged lessons on how to start this forex trading. At the moment I am using CMC Markets but have found (whether I am a noob or not) that its very difficult for me to learn about their software in terms of manipulating it etc. I will hasten to add that they is nothing absolutely wrong in terms of the order execution, order journaling etc. Its just that I was having a hard time trying to figure out how to extend it with custom programming. That said, most of the forex learning website that I have been on seem to use Meta Trader.

On first looks the MT look very cooperative. Its seems its quite easy to extend the functionality using the custom programming language. I just hope one day I will be able to program that holy grail dough making expert system so I can retire before I get to 50. There are multitudes of people who use it and I don’t envisage that it will be difficult to find someone who has done what I’d want to implement.

Lessons learnt from 2008.

Well… I learnt that the trading world is very ruthless to the stupid new comers who splash their money having no logical plan in place. I mean the trading plan.  I also learnt that emotions are not compatible with trading. You get thumped if you are emotional, leave that at the door.

2009 Resolutions

  • Make a trading plan
  • increase my knowldge by using mostly the free user groups and forums. After I had gone for the Knowledge to Action lectures I do wonder sometimes if that was a good use of my money.
  • use my trading plan when trading (logically)

So all the best to me in the new year and Good Hunting

When the Romance fades away

You need to have a strong reason for jumping into this trading business. When you initially discover the joy of leveraged trading you are suddenly gripped with the euphoria. This ephiphany that finally your time has come and that the time is now for you to make some money.

But no sooner have you started trading than you make a couple of losses, the euphoria suddenly turns to dismay and you are left cursing the people who led you towards this ‘holy grail’. Its at this moment that you realise that you need a very strong reason for trading. That you need a strong reason for wasting more than 2 hours of your time pouring your eyes over the technical charts.

Surely as the sun rises and sets, so will the bad times and the good times come. But for you to weather the bad times you need to have a strong reason to keep going at it so that you achieve the goal of making a profit.

To be successful its needless to say that you need other things such as good money management, a mentor to guide you and ultimately you need the trading plan which sets out how you chart the dangerous trading waters like Captain Cook in the high seas.