Strategy: Harmonic Pattern Trading

Target profit: 75pips per week
Indicators: Channel Movement, Harmonic Patterns, RSI
Important chart pattern: double-top/bottom and Head & Shoulder, divergence and convergence
Important candlestick: Doji, bullish/bearish engulfing

My Trading Mantra

1. Objectively identify my edges - I have a system here that works.
2. Pre-define the risk of every trade.
3. Completely accept the risk. Consider the money GONE.
4. ACT on my edges without reservation or hesitation. Follow the rules and take every trade that meets the conditions.
5. Pay myself as the market makes money available. Take the profits and be happy. Even if compounding my account, pay myself something out of my profits each month.
6. Continually monitor my susceptibility for making errors.
7. Understand the absolute necessity of these principles, and therefore I never violate them.

Friday, August 27, 2010

Recommended reading: The Quants

The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It

It is quite an interesting book to read. Especially for those who are into Technical analysis.

Your trade results will show if you are doing what is correct or you are doing what you like
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3 months straight profits

System is getting stablised and for the past 3 months, the account has been staying positive. Profit has been ranging from 7pips to 15pips. Looking at possible increase of profit target.

Looking forward for another 3 months of straight profits to confirm that the system is sustainable.

Your trade results will show if you are doing what is correct or you are doing what you like
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