Today 10/17/2012 was a very good day for me, even with waking up late and seeing I had missed a few good signals. I examined the lines of the different commodities and seen they were all trading according to spec for what I look for. When I see a market behaving accordingly that is when I take more trades and use a larger % of capital. If a market is not friendly or I am not getting the behavior that gives me a good enough edge I will simply reduce the risk to my bottom level 1% a trade or pass on any signal that even hints of a possible failure to the slightest degree. Today was the exact opposite of that so I took the full 5% a trade and I was rewarded with 7 wins out of 7 trades. Yesterday I did very well with over 80% win rate, today a 100% win rate day makes up for the bad day I had on monday where I won 7 out 13 trades. I was able to reduce my trade size on monday even if not the number of trades. This is an example of when winning increase when losing decrease all based on Objective trading = the market is not acting right and you reduce the number of trades or the % of capital used in order to limit the loss or even set a fixed limit of losing trades in a row such as 3-5 which is what I do. Because no matter how bright you are odds are you will not be able to predict the kind of day you will have. At least I can’t, This is where the mean average of what you do on a daily basis comes into play.
Trade 1 – Aussie back in play! The Aussie has been a least favorite trading pair the past few weeks where it was the best trading pair a few weeks before. The lines were very clean on this trade as well it had synced price from 10sec 1min 5min at the time of this trade. Really had no choice but to take it and took it with the full 5% as it seemed a near perfect signal for me.
Trade #2 – The Dow Sell another near perfect signal. Again a very nice setup everything in price was smooth and all of the lines were in sync which does not always happen on a trade, it is very dependent on market conditions. Again as soon as I entered it went my way fast and with nice smooth ticks.Technically this was the same as the Aussie trade except it had an even longer signal range from 9:02 to 9:40 so I went for the 9:30 expiry offered on two of my brokers.
Trade #3 – The Cac40 Buy – Now the Cac40 the french market exchange is not one I trade often as it is very jagged for ranges and is just not as smooth to trade vs the Dax which is far more smooth using my ALGOs. But it does have a higher pay out and when I see a good opportunity on it I will take the trade as I did here on a very fast window between 9:39 to 9:45 exact. Other markets were moving fast but did not have the synchronicity and lines the Cac40 had here giving me a very high probability setup for the entry.
Trade #4 – The Gold Buy – Here is another solid setup I took for a quick expiry around 6 mins. Again the 10sec 1min 5min all were in alignment and again I went max margin 5% on the trade and once again I was paid with a smooth move overall. Gold has been herkey jerky the past week and I have been hesitant to enter many trades as its been acting like it was bipolar with wild swings and in need of medication or psychological therapy on some of these moves the past week. Not much of a range after entry but still per my ALGOs a very good setup and once again ITM.
The last 3 trades were all in the 2pm range on EUR and Oil, again all smooth signals as the previous 4 but with more limited movement. The market between 8-10am had its greatest opportunities imo. I would have liked to see more signals today but since not one of the trades I took were close to threatening me with OTM I will not complain. In upcoming articles I will discuss money management methods and healthy habits that can help you be successful and reduce stress in your daily trading routine. I will also discuss the Kelly Ratio, how a Bell telephone technician came up a method to reduce line noise and how that can increase your profits as well as reduce your risk with Binary Options. Until next time see you soon!