Weekly Trading Review 4-8th April

This is my first week trading live after completing the Price Ladder Training course by Futex.

There week was a bit all over the place with actually trades taken.  So this weekly trade review has looked at the problems I had and what sets I am taking to put my house in order.

Order flow

I have spent the whole week working on how I am going to implement what I have learned into my current trading style.

It became clear over the Monday and Tuesday that trading them as 2 separate styles was not going to work.

The following problems developed

Taking order flow when I should have had a blind limit order in, was actually hurting my RR. It is fine, if I do not get filled by being front run but not when the original order would have been hit.

Which set up do I take, when I have a choice. I cannot have confusion at what I am doing at a level. I need to know how I am going to handle it initially and then what my backup plan is.

I was getting confused with context and what I was meant to be doing.

I knew this was going to be a problem before I started the course, but wanted to see what problems it threw up in live trading so I could come with actual solutions. I had tried to do this last weekend but had trouble working out how I was going to implement the 2 styles.

I spent a few hours each day for the rest of the week, looking at my individual setups and the order flow setups and altering my main trade system rules, so that they were easy and logical to follow.

Which sounds pretty easy, but it took over 20 attempts including revisions to come up with a 2 page document, which covers my 5 unbreakable rules, context, setups, RR/risk and when I can use order flow and also when I cannot use order flow and how I deal with situations where I have a choice of set ups.

I trialled this in theory on Friday and I felt comfortable in knowing what I am doing at each level. I am looking forward to next week to putting this to a full test.

2 Markets

I noticed during the course that I was not particularly good at trading 2 markets. Before the course my main market was the Bund and my secondary market was the Stoxx 50. Which worked well as I only took certain setups in the Stoxx, which limited the amount of focus I had to give to that market.

During the course I tried to trade both markets with my full arsenal of setups but that did not work, with the Bund as my main market. That did not work well, as I could be staring at the Bund doing nothing, as the Stoxx had good setup after setup.

During the course we studied the effect volume and volatility had on the markets and how we should adapt our styles to the markets.

I am came up with an indicator that measures current volume and volatility against an average of the past 10 days at the same time.

I used this to identify the better market in terms of volume and volatility and then I trade that as a primary market.

Of course that has one flaw, if both markets are good to trade which one do I trade. I found that if both have good setups then I tried to flip flop between them. And ended up missing out on a decent trade whilst focusing on the other market.

So I have come up with a set of rules which I am testing next week.

Primary Market

Default is Bund

I will take all my setups in this market.

Secondary Market

Default is Stoxx

I will take only IDS trades no scalps.

Before the open I will decide which market is primary and which is secondary.

This will be based on the quality of the surrounding levels.

At 0830 UK time for the AM session, I will, check the volume/volatility indicator and make a decision which market is offering the best opportunities and I do I need to revise my primary and secondary markets. I will then stick to these markets till the end of the AM session.

At 1200 UK time I will make a decision on which is my primary and secondary market for the PM session. At 1300 I will check the volume/volatility indicator and have a chance to revise the choice. I will then stick to this to the end of the session.

Unbreakable rules

1) If the markets are correlated and I get the same two setups at the same time, primary trumps secondary.

2) IDS trumps scalps.

3) No flip flopping, stick to the decision. Gather data and learn from it.

Market Review Process

This week I had a look at my trade review process at the end of the day to see if I could improve on the my current system of static chart and text.

I was looking to see if I could speed up the task or get a better learning process from this review. As I have found that a static chart and text, has limited replay value especially with order flow.

040416_1530_BundTrading1.png

What I have tried.

Audio and static chart. The same value as text and static chart.

Video and static chart. The same value as text and static chart.

Screen recording using static chart, replay of chart and order flow. This was the best for reviewing and learning. The whole process of looking at context from a static chart, and the level, then going through a replay of the order flow at the level and then looking at how it played out on the replay of a chart was very informative.

The downside it is very time consuming. The whole process for 2 markets took nearly 3 hours to cover a whole day for 2 markets. Whilst valuable I cannot see me keeping to this review process every night for my whole trading career. No matter the value this needs to be practical.

I have mentioned before that I am implement weekly practice sessions. I am going to fold this review process into these practise sessions.

I will practise the order flow blind, then I will look at the replay of a chart and how it played out with context of the chart and levels.

4 thoughts on “Weekly Trading Review 4-8th April

  • 12/04/2016 at 11:10
    Permalink

    Thanks, Adey.
    Regarding the review/learning process, I practically do the same and have to find a better way yet. The only thing that I discovered about the process is that I spot the nuances better and faster with time which means that as soon as I spot something that has occurred number of times before, I do not replay the whole “piece”, I just check if the “result” of the occurrence is the same/similar.

    Reply
    • 12/04/2016 at 11:19
      Permalink

      Hanna
      I agree with time it gets quick, and I also just replay the important bit. But as I am looking to improve my order flow reading, it takes time to review the action on the DOM. It is a worthwhile practice.

      Good luck with the rest of the session

      Adey

      Reply
      • 12/04/2016 at 11:22
        Permalink

        Hanna

        Next time you in the S5 room, drop me a line, I have a question to ask you.

        Adey

        Reply
  • 12/04/2016 at 17:46
    Permalink

    Thanks.
    I will login tomorrow shortly after open.
    Cheers.

    Reply

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