Weekly Summary: Mar 31 - Apr 4

A small change in strategy added with more discipline than before resulted in a big change in the result. How big you ask? How about a profit of $3065.87 for the week? Now I know this could be a one time event and I cannot expect the same results every week. Or maybe even a big draw down next week, but it is a confirmation that the new strategy does work.

What Changed?
Up until this month, I was following trading systems which operate on long time frames. This also meant I was looking for 100-200 pip on average for every trade I enter. Now due to the bigger time frames, I had to have bigger stop losses which meant my position size were usually small (0.3 lots).

Towards the end of last month, I read something in the OzFX forums which made sense and decided to give it a try. Basically when you are trading with these setups that operate on higher time frames, the first 20-50 pip is the easiest to get. So why not enter a trade with bigger position size and capture these initial 20-50 pip move? And maybe if the signal is really strong, even try for the 100 pip move? So that's what I did this week. I usually entered trade with lot size of 1 (10 mini lots) and have the stop loss 50 pips away thereby risking a maximum of $500 a trade.

How do I Use It?
Now that is just one part of the strategy. I also need to be able to find the trend and get in at the correct time. For this, i used my different setups, each on a specific time frame. I used the OzFX system on daily and 4 hour charts, the HAS method on 1 and 4 hour charts, the A-MACD method on 4 hour charts and the Elite system on 15 minute to 1 hour charts. I generally enter the trade based on the trend from OzFX, HAS or A-MACD systems (higher time frame) and use the Elite setup on lower time frame to re-enter the trades. That way, I can I can enter the same pair multiple times and capture 20-50 pips each time.

What Did I Do Wrong?
Now all was not rosy this week. While I made lot of profit, I also made some trades I shoudn't have even though they made me money. It was just sloppy trading, like not having the discipline to wait for my limit orders to get filled, chasing the price, not putting stop losses correctly and meddling with the target points (greed = BAD). This is something I am hoping to improve on.

So here are the highlights of this week.

• Adopted a different trading strategy and its paid off handsomly so far. It still more testing to see its risk/rewards.
• Came across another trading system called the Elite which is simple and works great on lower time frames (1 hour and lower).
• More disciplined in my approach than last week. Did not enter any trades without a stop loss and target point. While I meddled with the target points to get more profit, I never adjusted my stop losses.

And finally the stats for the week. Instead of putting the numbers down, I am just going to give the trade report here.