So, among all of the attempts at entering the market with paper, I have blown up multiple accounts, sometimes simultaneously , other times , individually with the hopes of being scientific about the whole thing. Usually without fail, I have no idea what my strategy is and go into it half cocked. There has been a lot of times where there was a strategy , and I failed to stick to it, deciding on a whim that the account would then take on multiple signals and started entering the market on multiple ideas at once.
This year, I have decided , it will be much different.
As the title of this post would suggest, this is pertaining to the one and only discretionary account. The idea here is to fine tune the details of the strategy before testing in a live account.
Rules to follow:
- Never enter the market on sunday evening.
- Always journal ALL trades, include idea, image, entry, exit, RvR, slippage and spread. Also include mental state, emotions , etc,…..
- Never add to a losing position.
- Always trade 0.01 lots per 2k account size ( so at 4001$ realized account balance, I may trade another 0.01 ) per instrument.
- ALWAYS Exit trades in instruments that are due to have news releases such as Interest Rate Decisions, NFP, or anything that has caused extreme changes without different reports
What is the strategy:
- It is a swing trading strategy, designed to only need so much work per week.
- It is called the TATiCal strategy, which is Trading Against The Crowd.
- When the aggregated longs and shorts are in extremes of %70/%30 or more, that is the signal to enter in the opposite position.
- Entries based on the Crowd, should be considered only after the crowd was unsure ( around %50/%50 ) and for as long as large time framed support and resistance allows for it
- Exits should be at S&R levels or when the aggregate longs/shorts hits 60/40
- S&R should be taken into account when entering, and if in confluence with the 50 or 200 MA
Again, this isn’t a full strategy, and the purpose of this is to practice executing rules over a long period of time ( a year? ) . This is actually something I have yet to do, where as i said before, every single practice ( and live ) account has in essence, lacking a strategy and eventually I trade to large and lose all of what I gained and more. All simply because I couldn’t follow a set of rules.