Date:Sat Dec 21 2024Tokyo:0:08Sydney:2:08New York:10:08London:15:08CET:16:08
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Zombie Zone Trading
bo_brown
Posts: 551 ✭✭
Posts: 551 ✭✭
I named this journal Zombie Zone because of the mindset I enter into to trade. Like a zombie, I am hungry and focused. I trade emotionless and methodical.
I have hopped around to different strategies and burned up accounts in the process. The past 60 days I have been focused on learning and sticking with one strategy. Finally I am seeing consistent success. I'm still learning, but I have overcome my mental blocks and have dedicated myself to reaching realistic trading goals.
My strategy is on the 5 minute chart. I use 3 indicators. An EMA set at 6, RSI set at 2, and the Williams %R set at 14. The RSI and %R are overlapping each other in the same window. I watch for the %R to start to cross the -50 line for a potential trade set up. Next I look for the current candle to be closing across the other side of the 6 EMA. Then I look for S/R levels. I make sure the RSI is above the %R for a buy trade, and below the %R foe a sell trade. Last, I usually wait for the final minute of a candle close to enter the trade. I like to have just under 6 minutes, so that the option expires at the close of the next candle.
I will start posting screen shots and commentary on Tuesday. I enjoy posting in a journal. I find it keeps me in a "business" type mindset. I am held accountable to the world to make sensible trades.
I have hopped around to different strategies and burned up accounts in the process. The past 60 days I have been focused on learning and sticking with one strategy. Finally I am seeing consistent success. I'm still learning, but I have overcome my mental blocks and have dedicated myself to reaching realistic trading goals.
My strategy is on the 5 minute chart. I use 3 indicators. An EMA set at 6, RSI set at 2, and the Williams %R set at 14. The RSI and %R are overlapping each other in the same window. I watch for the %R to start to cross the -50 line for a potential trade set up. Next I look for the current candle to be closing across the other side of the 6 EMA. Then I look for S/R levels. I make sure the RSI is above the %R for a buy trade, and below the %R foe a sell trade. Last, I usually wait for the final minute of a candle close to enter the trade. I like to have just under 6 minutes, so that the option expires at the close of the next candle.
I will start posting screen shots and commentary on Tuesday. I enjoy posting in a journal. I find it keeps me in a "business" type mindset. I am held accountable to the world to make sensible trades.
Comments
Ok, now for the trades...
Jul 23, 06:54:28 AUD/JPY 92.3580 Lower/Put 92.3980 Jul 23, 07:00:00 $10.00 81% $18.10 OTM / LOST
This one was ITM until the very last minute of the candle close. And the candle after that continued down in my predicted direction, as if to taunt me.
If I would have paid better attention to the 6 EMA, I would have saw the angle was too flat. It should be more at a 4-5 o clock angle on sell trades, and 1-2 o clock angle for buy trades.
Jul 23, 07:14:52 AUD/NZD 1.15876 Higher/Call 1.15871 Jul 23, 07:20:00 $7.00 72% $12.04 OTM / LOST
I have to admit, this was boderline revenge trading. I usually stay away from aud/nzd. Even this morning, the candles looked like a nest of porcupines with all those wicks on both sides of a lot of candles. I was attracted to this trade because when the RSI and %R rise across the -50 line close together signifies a strong move. My entry candle is the green one with equal wicks on the top and bottom. My strike price was when the candle was stronger looking with not much wick on top. That is why the expiry candle looks like a winner, but when you factor in the higher strike price I actually entered the trade on, the expiry candle was just barely OTM for me. The moral of the story for me, leave AUD/NZD alone!
Jul 23, 07:44:16 USD/CAD 1.03422 Higher/Call 1.03430 Jul 23, 07:50:00 $6.00 65% $9.90 ITM / WON
My signals were good on this trade, and it worked out well. In my screenshots, I enter where the %R is crossing the -50. By the time I save the picture, the %R is sometimes hooking back. I just want to make that clear.
Too bad it was the lowest possible return out of the three.
As for the amount that I risk on each trade, I am following a strategy where I take 20% of my balance and put it on each trade. Each win or loss, I recalculate the 20% from the new higher or lower balance. When I get to $350, I will drop to 15% risked, then at $1000 the risk will be 10%, and after $5000, I will go down to 5%.
Jul 24, 07:21:05 GBP/USD 1.53477 Lower/Put 1.53474 Jul 24, 07:30:00 $7.00 70% $11.90 ITM / WON
I found just one trade today. I saw 3 others that would have been great, if I would've gotten out of bed an hour earlier. I wrestle with a 12 hour a day work schedule in a shipping department. Some days, it takes a toll on my stamina. Ok, ok, you can put the violin back in the case, I'm done whining.
I noticed today's trade when my signals lined up, and price fell through a whole number at 1.53500. You have to get in and get out, as you can see, price rebounded immediately after I got paid.
My 2 points:
- Be carefull with the indicators because they follow the price, the price doesn't follow them. Make a good backtest to your system.
- 20% for every trade (even with recalculation) with 2 bad trades is almost 40% of your initial capital, but I got your point about your starting balance.
Happy Trading!
As for the indicators, I realize they are not 100% right all of the time. At this stage in my budding trading career, I look at them as training wheels. I have nothing but respect for traders that trade PA only. Someday, I will graduate to that level.
This one reversed on me as soon as I placed the trade. OTM#1
And this one also reversed on me as soon as I placed the trade. I placed the trade with seconds left, and the next candle opened up and turned on me. I am reviewing my strategy and making some adjustments. I am considering using the 30 min expiry times instead of the 5 min as I think 4 or 5 candles after my strike price may eliminate getting burned on these reversals.
2 OTMs, and no ITMs for Thursday's session. Still focused.
Jul 26, 07:27:14 USD/JPY 98.576 Higher/Call 98.587 Jul 26, 07:35:00 $5.00 71% $8.55 ITM / WON
I replaced my 6 EMA with two SMAs 3,8. As per the original system, when the 3 crosses the 8, and the rsi and %R are moving away from the -80 for a call, and are fairly close together, I take the trade. I must watch, because if the RSI is over half of the chart away from the %R, I should not take the trade, as this means the momentum to continue the move may not be there, as in the example yesterday.
Have a great weekend everyone!
I got up late today,again, and I was upset with myself. A 13 hour shift at work kicked my butt, but I will never escape if I cannot get up in time to trade without rushing. I rushed into this trade, and took a good look at support after I entered. The reason for the line chart,instead of candles, is I had just learned it is easier to find S/R lines on the line chart. Once drawn, you can switch it back to candles, but I saved the chart with the lines instead. I really need to watch the angle on the 8 SMA when I place my trades. It is a good filter. I must say, although it was a poor decision on my part to force a trade, it was "in the money" up until the last minute. If I was using Nadex, I could have closed the trade early and made a profit instead of sitting there just watching, helpless as it popped OTM at the last minute. Ok, tomorrow is another day....
This journal is showing my progression towards price action. I didn't plan on that, but today was price action. I stared at the screen for over an hour waiting for a set up according to my trading rules. I waited, and waited, but nothing came together with ALL of my rules. As I was looking, I noticed a nice little uptrend, and an opportunity to take a trade when a small red pullback candle formed. I entered at the close of the short red candle, and price resumed its upward march, and I was ITM. Notice how the candles stay above the 8 sma. Good sign of upward momentum.
Tonight I entered 2 sell trades. I felt like I had a strong price action move, so I took two positions seconds apart. My main trading rules with the %R had already happened, so I looked for a price action trade before I went to bed. I got lucky with my strike price entries, because as you can see, the red candles stopped coming like I had speculated. I would have had a textbook perfect trade had I been able to get on my laptop 2 candles earlier.
The nice thing about keeping a journal is that it shows your decisions, good AND bad.
Aug 01, 22:00:50 AUD/JPY 88.5485 88.5430 Aug 01, 22:30:00 $6.00 70% $10.20
Aug 01, 22:00:22 AUD/JPY 88.5480 88.5430 Aug 01, 22:30:00 $6.00 65% $9.90
Aug 02, 06:57:13 AUD/USD 0.88956 0.88998 Aug 02, 07:30:00 $7.00 71% $11.97
I had a skype call this morning with a rep from Cantor Exchange. I am comparing them to Nadex in the "Brokers" forum thread. Anyway, I wanted to grab a trade before the call, and I saw this one dropping ,but unfortunately for me, it found support. I made the leap from losing trader to break even trader, now for that elusive final step to winning trader....
Have a fantastic weekend everyone!
Never done binary before but interested to learn so any suggestions welcome so long as they are positively constructiveLOL.
I hope the attached chart will help to explain my thinking.
Happy trading
Reldas
It is great to meet other traders here. This is my oasis. My day job is filled with people who have no clue what Forex is, let alone Binary Options!
Aug 05, 21:44:57 AUD/USD 0.89238 0.89247 Aug 05, 21:50:00 $6.00 71% $10.26 ITM
Here I saw price break up through a resistance level. The EMA's were separating upwards, and the %R was lingering above the -20. I started off the week with a winner.
I tweaked my screen a little. I added the Parabolic SAR for confirmation of a trend change when the %R is crossing the -50.
When the trend changes happen, I have been sitting and missing out on other opportunities. So, I found a way to trade pullbacks while a trend is happening. I changed the two SMA's to the EMA's of 6, 14, and 26. When price pulls back and touches the 6 or 14, I watch for the following candle to resume the trend, and I can take a position with the trend at that point.
So, fast forward to this evening. I was watching a you tube video at work regarding mind science. It mentioned getting into your zone. It stated that athletes who perform at a very high level enter a mental zone where their organs expand, they are without fear, and they are so perceptive to everything going on around them, time seems to slow down. People who operate out of the zone do so with fear and apprehension. They have stress. I thought this exemplified why I named my journal Zombie Zone. If you trade with fear, and stress, failure soon follows.
I took two trades tonight. Needless to say, I was in my zone.
By the way, I dropped the Parabolic SAR. I dont want to clutter up my charts. It was starting to look like a Christmas tree!
Here are my 2 trades....
Aug 06, 21:26:49 EUR/USD 1.32994 1.32946 Aug 06, 21:35:00 $5.00 86% $9.30
Aug 06, 21:26:02 GBP/USD 1.53280 1.53267 Aug 06, 21:35:00 $5.00 78% $8.90
Both of these trades had price pull between the 6 and 14 ema. When the next candle opened red to continue the trend, I took the trades. The %R was dropping over the -50 at that point as well. Now, if I can discipline myself to stick to my rules, I could be hitting my $100 goal by Friday, and switching to Nadex.
Aug 07, 06:49:29 GBP/USD 1.54138 1.54775 Aug 07, 06:55:00 $6.00 78% $10.68 ITM
Aug 07, 07:11:13 EUR/GBP 0.86085 0.86061 Aug 07, 07:20:00 $7.00 70% $11.90 ITM
Aug 07, 21:22:09 EUR/USD 1.33339 1.33348 Aug 07, 21:30:00 $8.00 80% $14.40 OTM
Aug 07, 21:49:17 AUD/USD 0.89945 0.89974 Aug 07, 21:55:00 $6.00 95% $11.70 OTM
Aug 07, 21:49:20 AUD/JPY 86.9205 86.9110 Aug 07, 21:55:00 $6.00 65% $9.90 ITM
Aug 07, 22:09:25 USD/JPY 96.649 96.632 Aug 07, 22:15:00 $10.00 81% $18.10 ITM
ITM #1
ITM#2
OTM
Aug 09, 13:54:38 USD/JPY 96.386 96.381 Aug 09, 14:00:00 $10.00 72% $17.20 ITM
This trade I was watching price on the 5 min and 1 min chart. I've been noticing that when the 6EMA flips over the other two EMA's, a new trend direction is strong. I saw that happening here, and took the trade, and won.