Harmonic Pattern is not just a trading signal for me. It is also to limit the trading too. No Pattern No Trade.
I believe to become a consistent trader we need a systematic trading as good as possible. So many trading course out there just give us technique or strategy separately. If market do this then it is a buy, and vice versa. There is robot solution using EA but I think swing trader no need for that. A good systematic trading for me is a step by step analysis with score sheet to decide the trade. It is also should provide people without trading knowledge to trade accordingly. Even trading job already free from 9 to 5 job, it is still a labor work. It will be best if we can outsource the job to others with even have never trading before. In fact it is better to give the job to theirs who never trade as it give no bias with market condition right now. The job for the boss is to keep close with market sentiment by updating news all the time. You don't want to sell NZD when Central Bank just announced rate rising even if the signal screaming loudly to sell. This is what bosses do. They are not doing a labor work. They create ideas and strategy to keep the business run.
The methods should give consist confluence confirmation in a score sheet. For example Pivot Point, ADR, RSI, Candle Reversal and so on. The confluence should be objective. Support Resistance is subjective and need experience. The methods should give same score with different trader albeit same trades. The Trader (or worker) should work mechanically and the performance of their job IS NOT BASED on how much they PROFIT, but how GOOD THEY FOLLOW THE RULES. Loser trader will have better bonus if they follow rules more intact than their colleague who profiting. Luck will run out but Consistency will still survive over time.
The System Trading should be have at least 1 profit in 5 trades in a row. The biggest weakness for me and other trading too is to keep changing the rules and strategy. It is my bad habit for me. As long I consistent to hit Profit Target at least 1 out of 5 I will not change. With the positive expectancy, profit will cover the losses over time. So far even with low 20% winning ratio I haven't achieved it. But it still surprised me that last week I still book profit with 7 losses in a row in last trades. For me too many losses in a row will degrade the trading morale.
Next week I will tweak some rules that I think will have better result. Thanks for reading and have a good weekend and trade.
I believe to become a consistent trader we need a systematic trading as good as possible. So many trading course out there just give us technique or strategy separately. If market do this then it is a buy, and vice versa. There is robot solution using EA but I think swing trader no need for that. A good systematic trading for me is a step by step analysis with score sheet to decide the trade. It is also should provide people without trading knowledge to trade accordingly. Even trading job already free from 9 to 5 job, it is still a labor work. It will be best if we can outsource the job to others with even have never trading before. In fact it is better to give the job to theirs who never trade as it give no bias with market condition right now. The job for the boss is to keep close with market sentiment by updating news all the time. You don't want to sell NZD when Central Bank just announced rate rising even if the signal screaming loudly to sell. This is what bosses do. They are not doing a labor work. They create ideas and strategy to keep the business run.
The methods should give consist confluence confirmation in a score sheet. For example Pivot Point, ADR, RSI, Candle Reversal and so on. The confluence should be objective. Support Resistance is subjective and need experience. The methods should give same score with different trader albeit same trades. The Trader (or worker) should work mechanically and the performance of their job IS NOT BASED on how much they PROFIT, but how GOOD THEY FOLLOW THE RULES. Loser trader will have better bonus if they follow rules more intact than their colleague who profiting. Luck will run out but Consistency will still survive over time.
The System Trading should be have at least 1 profit in 5 trades in a row. The biggest weakness for me and other trading too is to keep changing the rules and strategy. It is my bad habit for me. As long I consistent to hit Profit Target at least 1 out of 5 I will not change. With the positive expectancy, profit will cover the losses over time. So far even with low 20% winning ratio I haven't achieved it. But it still surprised me that last week I still book profit with 7 losses in a row in last trades. For me too many losses in a row will degrade the trading morale.
Next week I will tweak some rules that I think will have better result. Thanks for reading and have a good weekend and trade.
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