||Technical & Fundamental
||5th Jan 2015
Learn more about AlphaDayWalker
- I trade all major G8 currrencies (USD, EUR, GBP, JPY, CHF, AUD, CAD, NZD) and their crosses based on strong/weak dashboard.
- I maintain a weekly trading plan. At the end of every week (usually Friday), I looks at the market from macro perspective, how each of the currency pair was doing last week and what scenarios/which direction for the coming weeks, what is going to be major news on the dockets etc. - cascading to each of my specific watchlist or opened trades. The trading journal can be accessed in my blog here: https://ticks-magnum.blogspot.com.au/
- I base my trading strategies on both fundamental and technical reasoning. For technicals, I use predominantly trendlines and S&R, Fibonacci Retracement/Extension, RSI for oscillator, and volume indicators. I combine these with the price action to contemplate my entries/exits. I'm a trend trader (continuation and reversal) with trade's horizon last from 3 days to weeks. When a trade goes into my favour, I trail my stop to increase the R:R ratio for those trades and gradually scaling out to protect the profit.
- Risk management: (i) I use average in/out to minimize risk of short-term volatility/sudden pullback. (ii) If a trade goes against me for around 40% of my risk (which is 2-3% of my capital) I start scale out the position to reduce the maximum loss of that trade. (iii) I use three-pairs trade to hedge (E.g. Sell EURUSD and Sell EURAUD by leaning on AUDUSD's trend/momentum) - analogous to spread trading style. (iv) I use position-sizing to reduce exposure during low-volatility period (like summer holiday, year-end or ahead of high-impact scheduled news).