so i have not been posting FIO for awhile but i have been trading quite a bit, unfortunately successes alternate to failure and often trading badly i because lack of discipline and bla bla bla i erased in 1 day what i did well for weeks.
so right now my idea is, after a lot of time not trading the Sim, go back to to Sim!! it doesn't look very exiting, inst it?
In reality there is more then this, i think that one my problem is that i am too much discretionary, so for me i think it would be better if i had some more rules to navigate the market every day, i am not saying it is the right things to do but probably it is what i need.
How to build the rule and how do i know if the rules works or not? back testing and forward testing my set-up.
My first set-up I back tested already and it is the classical pullback trade, the one that Al Brooks call H1,L1.
Set-up description
Context: market in a strong trend or on a spike (2 or 3 trend bar)
enter with stop 1 tick above signal bar,
the signal bar can be any bar (for the moment)
stop will be below the signal bar
TP at 1R
Not possible move either the stop or the stop loss (set and forget)
Not enter against support or resitance or after buy or sell climax
as reference an image below of what the H1L1 looks like on a chart
this set up was manually backtest on 100 trade and show a profitability of 65% with R=1, i think it is not great but it is really the basic version of the set-up, i would like to improve the rule later but first of all lets understand if it will work on live market on a Sim.
Note that there are a lot of discretionary assumption in this set up, like: market in strong trend or spike, no buy or sell climax.
i will trade a Sim account of 50.000$, mximum risk per trade 2%, and i will trade at the same time even 4 instrument like CL, GC, Dax, Es, 6E.
In the next post i will report the result of the first day of trading, of curse the first day is positive!:)