Returning to daily Forex trading
A week ago I’ve come up with a trading approach I want to test. It’s based purely on candlesticks and support/resistance levels.
After the market has taught me a tough lesson recently, I’m now back to demo trading. Why deceive myself, if it is obvious that I’m not ready to trade and keep my wins consistent yet.
I’ve decided to look closer at daily time frame. There are advantages and disadvantages of that:
- daily charts have less price noise; besides many professional traders seems to be trading of daily charts, at least that’s what they recommend. That’s an advantage.
- daily charts require less time to be spend in the Forex world. I find it also an advantage, not only because I will have more time to do other things in my life, I will also have more time to actually study Forex and what’s also important for me, I won’t feel bad about dedicating a lot of time to Forex and seeing no results. So far I’ve been spending my entire free time trading Forex, but I couldn’t make it work my way and I’m back to demo trading. This bugs me, feels as if I’m waisting my time :/
- An obvious disadvantage of demo trading with daily charts is that it will take me months and months to test my system properly. And if case I decide to change my trading rules, I’ll need even more time for re-testing. But I’m determined to do that no matter what.
That’s the course I’ve taken in my Forex trading adventure. Aimed to succeed!
Filed under: First steps in Forex
2 Responses to “Returning to daily Forex trading”
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That’s a right decision. I applaud you for your persistence. Your case is very much similar to mine. After I got greedy trying to make trades many times a day, I realized that the more times I trade, the more I lose. I therefore decided to shift to daily only but always zoom in to see reaction to news in smaller timeframe. It’s also useful to ensure that you don’t enter a trade on a daily on a day that could have significant news releases, unless you have credible predictions of the news release numbers or direction.
But my only suggestion is that you try to have your system backtested on daily charts in the same time of doing your demo because that may save you time and help you realize your system’s performance in the past (hypothetically). At least that’s what I do but I often put my strategies in automated format (through MT4) and test it on daily charts for many many days in the past.
It is more than 3.5 months since your post, I wonder how your strategy went. Will be glad to share with you trading strategies.
All the best.
Walid
Hi Walid,
I value your advice. The more I think about backtesting features, the more I want to try it out… But i can’t seems to find time to learn how to code on MT4. Where did you start, can you recommend anything about it. I’m sure I can Google some advice, but I’d like to hear how people start too.
As about my strategy, there were ups and downs. I’ve been changing and rewriting the rules a lot. Also tried to study as much new info as I could.
In two words, the results are: teasing totally new system I polished just yesterday…
During those 3 month I’ve been changing systems a lot. At first it was even frustrating, because it seemed I couldn’t find the right one. Then I got used to it, so yesterdays’ transformation went smooth
I think I’d write a new post now, where I’ll tell about the ways I search for and try to model the perfect Forex strategy for myself.
Good luck!
May