Monthly Archives: June 2013

Trade Review Examples

The following trade review examples have been taken (with permission) from some email conversations with Josh, a trader of the YTC Price Action Trader methodology.

He's still in the early stages of his development, developing confidence in his strategy and processes through historical chart review. He's doing this using ForexTester software which allows for trading of historical charts as if it were a live market environment.

Josh has been making tremendous progress. The two most recent months results were as follows:

March:

  • 25 trades
  • 16 winners
  • 9 losers
  • Average win: $249.42
  • Average loss: $141.94
  • win%: 64%
  • win/loss size ratio: 1.75 : 1

April:

  • 13 trades
  • 9 winners
  • 4 losers
  • Average win: $401.72
  • Average loss: $190.28
  • win%: 69%
  • win/loss size ratio: 2.11 : 1

In both cases the win percentage is really healthy. And the winners are significantly larger than the losers. Too many people over-analyse their individual loses in attempt to avoid them in future. By all means analyse them and improve your knowledge and skill. But accept as well that you'll always have losses. And as long as you manage them, as Josh has been doing (ensuring they're cut short and that the winners are held for larger profits) then the losses are quite acceptable.

What is not to love about those stats. Josh has a great edge here… evidenced as well by the nicely rising equity curves for each month, and the distribution graph showing larger bars on the winning size (also included in his email but not shown here).

This is great trading.

My advice to him: Continue exactly as he's been going.Set this as his benchmark (or even set slightly worse) and continue from here aiming for consistency in results. If he can maintain this approximate performance for another 18 hindsight based months, I'd want to then see him transition to forward testing. (Note: a month of hindsight based trading using forextester does NOT take a month… just in case you were worried about how long this might take!)

But that's not the point of this article!

Rather, I want to talk about a key part of the process that Josh used to get to this point.

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Scaling In and Out

The following is an email I recently received from a trader of the YTC Price Action Trader method, which I think will be of interest to all traders.

Bijan has demonstrated great decision making throughout. Excellent recognition of traps and great trade management from start to finish.

And more importantly you'll see how he's added his own elements; blending the approach to suit his own style of trading. All setups, entries and trade management decisions are pure YTC Price Action Trader, but what is unique is his method of applying the approach across multiple timeframes simultaneously.

Great stuff!

If you've also got the YTC Price Action Trader, or are just interested in price action methods, you'll learn a lot through reviewing the images below.

Email:

Hi Lance,

I had an in interesting trading session on Thursday that I wanted to share with you. Watching 6 different periodicity for the same symbol (SPY) may seem like a lot, but over time it has proven to be beneficial for me as I attempt to show you how I add to my position using different time frames.

Hope you enjoy it as much as I did.

Happy Fathers Day,

Bijan M.

 

scaling in and out

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NinjaTrader Tips and Techniques

As NinjaTrader is my primary platform (and also appears to be for many of my readers) I thought I'd add a page to my website with any tips and techniques that I've come across. The intent is to not cover anything that should be obvious from use of the primary toolbar or menu items (such as how to open a chart or create and save workspaces) but rather to share (a) anything that caused me troubles and required a search to find the answer, plus (b) anything cool that I come across but wasn't aware of.

Good Places to Search

If you don't find your answers below, try the following locations:

Contents

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It’s a Process – 3 – Longer Timeframes

The recent "It's a Process" visual articles have been very popular.

So I thought I'd do a different one with a focus on a longer timeframe.

Please note… I don't trade this timeframe. I trade lower timeframes for personality and lifestyle reasons. But there is no "best" timeframe. I know that many of you do trade higher timeframes such as hourly charts, 4-hourly charts or even daily charts. And that's fine. We all need to find our own niche. The important point though, is this simple fact… the process is the same.

So which market should we look at? And which timeframe?

Well perhaps we can do more of these covering different markets and timeframes. Let me know if you'd like more. But for today's effort I thought we'd start with the EUR/USD 4 hour timeframe.

I recently posted an image onto the YTC Facebook page as follows:

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