System Development

Overview: I want to develop a trading system that can at least get me consistent result monthly, I can have losing days or weeks, not for month. This system can be automated or not, only depends on how it's implemented, cause if I put more technical factor and even fundamental factor in there, automation will be impossible.

Goal:

1. Consistency


2. reviewable, measurable

Details:

1. First I should be able to identify what day it is, is it trendy or ranging, that will help with the bigger picture, then depends on trendy or not, I can decide if I want to follow the trend or fade it with support/resist.


2. Following the trend: I can do resist breakout trade, after the breakout, buy the dip to ema62 on 5 or 10 seconds chart.


3. Range and fade trend: Short at the resist or after the breakout, if the price drop back to resist, short it and use the breakout price as stop.


4. In order to trace the trade and improve the system and make sure it's consistent, we need to have a google doc spreadsheet, it should include date/hour of the trade, Reward:Risk, result, Trendy/Range, Long/Short, 1d-1h-15-5, News, Comment. At the end of the week, should be able to review see if 1-1-15-5 help or not. The sheet shouldn't have P/L, it should only have if I follow the plan and if it worked or not. P/L should be tuned only after I can follow the plan.

So far, these 2 should be my best setup. I will run more test on both of them see how the 1day-1hour-15m-5m ema62 will affect the trend decision. The trending days would be easier to trade as more players will be involved and that means more volume and smaller spread, when last 2 weeks of the year, spread is high as 1.4 pips as normally it was 0.9.

Problems: There are problem with the system as

1. my target is 10 to 15 pips and stop is 10 pips, my spread is 0.9 meaning I give about 20% of profit as spread for round trade.