My Approach to Forex Trading #4 Trades on the GBPJPY

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

My Approach to Forex Trading #4: Trades on the GBP/JPY

GBP JPY (British Pound / Japanese Yen Spot)

The British Pound (GBP) vs. the Japanese Yen (JPY) is a highly volatile pair. JPY is often used as a funding currency of a trade because it’s historically a low yielding currency. Since UK is one of the larger economies in Europe, the GBPJPY pair can be considered as a proxy for worldwide economic health. On the other hand, this pair performs like a representer for market ‘risk-off’ moves as the carry trade gets reversed. As a result, GBPJPY is able to develop strong trends that exceed thousands of pips.

A fluid approach to trading

I’ve been posting a few trades in a thread I started over in “Systems” but it really doesn’t seem to lend itself to my various approaches. I believe a journal will suite me well and allow me to be a bit more free in what I share.

To start off I would like to begin tracking yet another system I have been working on and trading for the last few months. It’s a bit unconventional as it does not incorporate fixed stops and it does currently allow for discretion. Being that there is no SL, there is a higher level of risk in involved, which I am willing to take, I am not willing to risk money I cannot lose. I would also like to note that although there is not an SL in place, there is a clear point in time where I certainly will close out the position(s).

Account size for me needs to be small for now (about $5,000), given the initial risk involved. But to curb this risk, lot size is also small, 1,000k (.10 per pip) to 2,000k per entry. Sometimes higher, depending on the weekly setup. These lot sizes will likely never change, even when account is added to and has grown. I believe it would be best to continue to add more entries across more pairs than increase lot size.

I will start building a list of parameters and guidelines, as most of it lives on a notepad and in my head, but for now here is a scenario I put together for a friend recently to try and convey the best picture I could to represent guiding factors for my entries and exits. Keep in mind this is just a guide and likely has some discrepancies, as I put it together rather quickly, I will update and improve this over time. It is a rough scenario at best.

This is not 100% mechanical, but it is slowly becoming more and more so. The next chart I will be posting is a weekly chart. The weekly is very important in deciding where to start off on any given pair and really is to assist me in where to and where not to place trades.

I currently have a handful of positions open. Starting off I will be averaging 2-4 entries per week, building to higher frequency over time across more pairs. The key will be not to rush in the initial stages. This is multi-faceted and involves hedging once a certain level is reached.

  • Post # 2
  • Quote
  • Sep 5, 2020 11:39pm Sep 5, 2020 11:39pm

Here are some initial thoughts as I move forward with my journal:

The thing I have figured out about myself over the last couple of years is that I always need to be in a trade. I know how it sounds, and it really goes against the grain of everything I’ve ever studied, but it’s the truth. In saying this, I need to break down the word “need” and what I mean by it. I’m not saying it in an compulsive manner, but more along the line of I need to be in the market to get a feel. It doesn’t matter to me if I am up or down, all I know is once I am in I can better gauge what I am to do, whether it be average my position, get out, or add to a winning position. There’s really no other way for me to trade with discretion unless I am in at some level.

That’s it for now. No entries placed today, will check back in tomorrow.

  • Post # 3
  • Quote
  • Sep 10, 2020 7:46pm Sep 10, 2020 7:46pm

Open Longs:
USDCHF 9583
USDCAD 1.000
NZDCHF 7600
CADJPY 7955

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

Open Shorts:
GBPUSD 5990

Closed Position Running Total (Starting 9/5/12):
+10 pips

From Concept To Profitable Trading

From Concept To Profitable Trading

I am starting this thread to document the complete process of “From Concept To Profitable Trading”. This is a multi-year commitment where I am going to make the process of starting from scratch with a concept and building into a profitable trading system.

My goal is to become a professional trader earning income through trading and to say goodbye to my day job in the near future. Trading has always been a passion of mine and I have traded stocks and forex over the years as a hobby since 2001. Over the last year, I have been trading the futures market and looking to apply similar concepts to a Forex battle plan.

I have had a successful business career (still in progress), just entered my 50’s, and my kids are now older about ready to leave the nest. Those of you with a young family knows the challenge of providing for them and attempting to make a change from stable employment to trading. With those responsibilities winding down, I am now in a position to chase my passion.

I would imagine most people on Forex Factory are in a similar position. You love trading and you are trying to figure out how to make it your day job. I hope this journey will help some of you in some form or fashion.

Much of the information about completing this process is detailed. Instead of writing a novel here, I will share as much information via short videos (approximately 20 mins) of the information I am processing. Instead of reading pages and pages of information, short videos may be easier for people to follow. In addition, I will create a YouTube channel called “From Concept To Profitable Trading” which will store videos generated.

As you can see from my philosophy, I treat this very seriously. Trading is a business and money is involved, so it should be serious. If you decide to participate in this thread (and you are welcome) – be respectful, stay on point and have transparency. People who work together learn from each other for continuous improvement. As I will explain in some of the concepts, we will fail, make mistakes and lose trades – that is part of the process and the business. If you are participating in Forex Factory for social media enjoyment and to create drama, please go to another thread where that is the intent of the owner.

Finally, I believe in keeping it simple. No indicators will be used, simply price action, structure and a few drawing tools.

To systematically create a profitable trading plan AND execute it consistently to achieve 20 pips per day

Develop a profitable trading account with minimal financial investment and risk

Document this process to share for the benefit of others

Review Market & Institutional Trading Model Concept – Post #8

Trading Idea To Match Market Movement – Post #12
– Probabilities, Risk:Reward, Stop Loss

Money Management Plan – Post #14

Draft Trade Plan

  1. Overview – Post #18
  2. Pre-Trading Analysis – Post #19
  3. ABCD Pattern Criteria – Post #28
  4. Trade Entries – Post #29
  5. Trade Management / Money Management – Post #30

Discipline and Emotional Control

Open $1,000 Demo Trading Account With Public Results Viewing For Transparency – Complete and attached to the thread

Adjust Trade Plan Until Positive Expectancy and Profitability Is Achieved – Complete

Open $1,000 Live Trading Account With Public Results Viewing For Transparency – Complete

Once $2,000 Has Been Achieved, Remove $1,000 Investment

Continue To Grow Live Trading Account By Following The Trade Plan

Tools Used On My Charts

MT4 Renko Bar Chart Converter

This “indicator” will take your online chart and convert it to a Mean Renko Bar chart, which is offline. Since MT4 does not have Renko capabilities, this file helps develop/convert the chart for analysis into a Mean Renko Chart. The offline chart is real time and is built from your online chart. All is the same and you can perform all functions, but you must maintain the connection with your online chart. For example, if you delete your online chart, of course the offline one will not work. I use the chart and set it to the ATR based measurement of the bar size, which will auto adjust as the ATR expands and contracts. To view the longer term (similar to an H4, I use 3X the ATR setting and manually change). I am not affliated with the company who produced the file, however it is a $45, one time lifetime license. You can find it at https://ovo.cz and is called Mean Renko Bars.

This indicator is from Davit’s Pivot Trading thread. It is simple, clean and easily adjustable. My settings are below:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

Like this post? Please share to your friends:
Binary Options Online Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: