Michael's (zlabis) Journal [The Magician]

[immy]

I had doubts whether m5 will workout for you as you seem to trade quite in a chained fashion, you're long you're short, and long again. If you do that on m5 its not gonna work. Well it will work but you'd need the whole 8hrs of session. (this was just my guess before I actually did my calculations for this post) so here we go

2hrs m1 = (5x2) 10hrs m5. You were eager to check out m5, you've been trying since january even before but i kept stopping and finally you found it out yourself. my formula of 2hrs is there for a reason!

IN fractal geometry terms and suppose the proportion of spread and buffer were equal then M1 is King but... (e.g. on m1 2-3 pips are wasted on just getting into the trade and 1-2 to get out of it. You would still spend the same buffer and spread for any h1 trade yet the proportion of spread lets say 5 (buffer plus spread) compared to average winner per time frame is quite different. If you trade m1 and your average winner is 10 pips than spread is 50% of that. That is rubbish, too expensive but if you trade h1 and your average winner is lets say only 50, the cost of trading is way less , ie.e 10%. we want to keep these costs as low as possible. Because if you do the math over the period of 1 year, your m1 costs might spiral into hundreds of thousands of dollars and pips. So on m1 you have to have to perform exceptionally well. thsi was supposed to be a small comment within parentheses. haha. ) anway so

2 hrs m1 = 120 bars meaning
2hr m1 = 10hrs on M5 (120 bars x 5 min = 600min i.e. 10hrs)
2hr m1 = Exactly 1 week of Hourly charts.
2hr m1 = Exactly 4 months (120 working days excluding weekends and bank holidays in UK from 1st Jan 2015 to 30th April 2015)
2hr m1 = means 2 years and 6 months of date on Weekly chart (48 week year, 2 week winter and 2 week summer break woohoo)

So If you'd like to perform as good as your m1 and you want to do that on m5, you'd need either 10hrs daily on M5
or a whole week on hourly
or 4 months on daily charts...


pssst: now you won't give a shit about m5 because you're convinced M1 is for you. Just like Grant and I are convinced that M1 is our EDGE! remember our skype conversation.... A grin on my face, when people tell me, M1 is too fast for me and its too this and that... its a compliment for those who can do it. Having said that its just a matter of time. With practice, everyone can do it. Its must slower than hitting a baseball or a cricket ball.

[zlabis]

Immy,
you were and are right about my M5 trading. As R/R-ratio was too tempting I had to learn it the hard way that M5 is not the suitable timeframe for me. It is simply too time consuming according to my daily routine.

And like in my former football carrier, where I was not the tall and a bit "ponderous" center defender but I was more the agile and technically skilled offensive player, in trading I feel more comfortably with the faster moving M1 as well.

Last week, going back to M1 was sort of coming home. As long as I'm "only" trading part-time, I'll stick to M1 DAX. That's best to me, at the moment.

Cheers
Michael

[zlabis]

Fri. Mar 20, 2015

Screen time LO-session 8:30 - 11:00 (GMT+1) M1/M5 DAX only - Demo mode

Today, server-time is CET +1 hour. It's EET now (GMT +2) for the next week until daylight saving here as well on 29th of March.

I started a bit earlier because recently the nice moves after London opening had its origins in patterns around 8:30 (CET = 7:30 GMT UK-time), IMHO.

And so it happened today as well. After a small rent, I caught a good up-fruit with tiny SL. It went up nicely but as it pulled away a bit quickly I started to trail green bars instead of let it run. I was a bit concerned about the possible price action at London opening so I wanted to play it safe. After LO it proved its initial direction of my trade but I was already out. I was able to catch the break-out with a new position but exiting the previous costetd me good Pips. Was not necessary so I will try not to close trades only for protective reason.

The rest of the session was a choppy up and down without that it found a direction. Nevertheless it was possible to pull out some Pips of the chops. With exits I stayed very disciplined today but in hindsight I was always a few candles late. On the other side, if a bigger break-out occurs, I will be there to catch it.

Today's result:
- 7.1 + 21.1 + 6.4 + 6.1 - 5.7 - 5.6 + 15.1 = + 30.3 Pips
Mistakes: 1 (costs: 21.2 Pips)
stretched rules: 0

[zlabis]

Result of week 12 - 16.03.-20.03.2015 - demo M5/H1 and M1/M5:

Mon. 16.03. + 121.4 Pips, 2.25 hrs, M5/H1
Tue. 17.03. - 41.9 Pips, 2.00 hrs, M5/H1
Wed. 18.03. - 50.8 Pips, 2.00 hrs, M1/M5
Thu. 19.03. + 134.0 Pips, 2.00 hrs, M1/M5
Fri . 20.03. + 30.3 Pips, 2.25 hrs, M1/M5
-------------------------------------------
Result ...... + 193,0 Pips, 10.50 hrs

[zlabis]

Mon. Mar 23, 2015

Screen time LO-session 8:30 - 9:30 (GMT+1) M1/M5 DAX only - Demo mode

Server-time is CET +1 hour. It's EET now (GMT +2) for the next week until daylight saving here as well on 29th of March.

Started earlier again to catch the teensy-weensy fruits before LO which often are followed up by the break-out at or short after LO. And it worked again - after only one rent, I took this lovely tiny AA-Fruit with only 6.8 Pips risk which turned out to be a 1:10 winner. Had PO for add on below first lower AIMS-level but my feed got frozen so it was filled 25 Pips further down. Exit was ok at 2nd up-fruit. Tried to catch another break-out which payed me a bit again. Stopped trading afterwards because I had to leave.

Today's result:
(+ 1.7 - 5.7) + (+ 70.4 + 42.7) + 7.4 = + 116.5 Pips - thank you very much ;-)

[zlabis]

Tue. Mar 24, 2015

Screen time LO-session 8:30 - 10:30 (GMT+1) M1/M5 DAX only - LIVE again

Server-time is CET +1 hour. It's EET now (GMT +2) for the next week until daylight saving here as well on 29th of March.

Today I've switched back to live-account due to proved confidence again.

What can I say? DAX "behaved" as usual. Today it moved down a bit before it broke out to the long side with a massive move of nearly 150 Pips. I caught the down-move and was a bit late with the up-move because of fiddling with the PO after this lovely up-fruit on the bottom. I waited and entered at the next AIMS-level above red gator which turned out to be a home-run, even with a single-entry-trade.

After a very enlightening skype-conversation with Immy and the other AIMSters about investing, I tried a good, low-risk up fruit which didn't work out well because it went into correction again before it broke finaly out again.

Entries and exits of the trades today are rather self-explaining, IMHO.

Trading and chating were big fun again. Every day, I'm looking foreward that session is starting ;-)

Today's result:
+ 16.9 + 83,4 + (2.3-3.9) = + 98.7 Pips with a an average risk of only 13,6 Pips (INCLUDING add ons) - thank you very much

[zlabis]

No, Sam. Already switched to live yesterday. ;-)

[zlabis]

Wed. Mar 25, 2015

Screen time LO-session 8:45 - 10:45 (GMT+1) M1/M5 DAX only - LIVE

Today DAX took a little rest during LO session and hoovered around 12000 points mark. It started choppy in a bit widening range of around 33 Pips which gave me some opportunities to pay market some Pips back, I've been taken out of it the recent days. It took me 2 up and down-cycles before I was able to implement it into my trading with Trade 5.

I've found it relatively easy to deal with 4 rents in a row because I knew and know that I will get it back later if I only stick to our proven rules. Was a bit lucky not having checked pip-count of my rents (-63.3), otherwise my session-SL (5 rents in a row or -60pips) would have been triggered and I would have stopped.

I more and more understand what I previosly only knew theoretically. We don't need to be afraid of choppy or "uncommon" market conditions because our trade- and money-management rules protect us from harm if we apply these rules with discipline. Another "truth"which is starting to trickle into my deeper understanding is that we have to obey and love our rents because they bring us our next big winner one trade closer. So now I can truely and deeply accept them as investments into my winning trades. This takes so much preassure out of the trading process, I can't even explain in words.

Anyway, after the range-bound beginnig of LO it developed more movement and it gave me more opportunities to take out some Pips. Overall it was a BE-day with big fun for because it was completely stressless. Today not the result is the important issue but the way to achiev the result, even with that rookie-mistake at Trade 7 ;-)

Today's result:

- 63.3 + 5.0.+ 11.9 -18.6 + 62.0 = - 3.0 Pips

[immy]

Hi Michael

as usual a great post. Enjoyed reading it .Might I remind you of the last of T20 Campaign style recording is missing?

[zlabis]

Hi Michael

as usual a great post. Enjoyed reading it .Might I remind you of the last of T20 Campaign style recording is missing?

The result uf T20 will follow at the end of the Easter-break ;-)