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How to back test a manually traded strategy using TradingView
Trading is hard. It takes a lot of practice. One way to practice and build skill and confidence is to back test a system over and over again. In this video I show you how I do this using online charts at Tradingview.
I added another video showing the updated version that has the ability to replay the market.
How To Place Support and Resistance Lines on Your Chart EUR/JPYOANDA:EURJPY davetromp
I was asked in the Tradingview chat how I place support and resistance lines. So I made a video explaining how I do it.
If you are trading for a long time already, this may be obvious, but if you are just starting out it takes some practice.
Still there are some principles that can guide the placing of S&R lines.
First of all S & R lines are not lines, but areas or zones.
Secondly, recent data is always more important then less recent data.
And thirdly, you should only place lines at obvious swing points.
And when placing the lines on the candles, you can take the following order of importance into account: BodyWickTouch
Bounces of candle bodies (open and / or close prices) are more important then bounces of candle wicks (highs or lows of candles). And sometimes candles touch the line, but not exactly on the open, high, low or close of the candle. This is considered to be least important.
Here is another trade review video. I learned some important lessons this week. I already knew I could be so much more profitable if I could get my psychology in check and this weeks trading shows that. Hope you can learn from my mistakes.
No charts and written review this week on my blog. You can checkout out my trades on previous posts and tradingview user @davetromp.
Engulfing Patterns on USDCHF and AUDUSD USD/CHFOANDA:USDCHF davetromp
Some engulfing candle patterns have formed against the USD on the USDCHF and AUDUSD .
So I am shorting the USD by shorting the USDCHF and longing the AUDUSD .
Here is the chart of the AUDUSD:
Here are my entries in my trading log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-20 USDCHF Short Counter Trend Up Horizontal Resistance Engulfing retrace
2019-05-20 AUDUSD Long Counter Trend Down Horizontal Resistance Engulfing retrace
Reversing position on USDCHF after stronger than expected NFEC U.S. DOLLAR / SWISS FRANCFX_IDC:USDCHF davetromp I closed out my short position on this currency pair at break even. It looks like it will continue higher making a leg up to the next resistance area . I will enter on a retrace of the pinbar . This way I will enter right above support and hopefully exit right before resistance for an take profit of 2R. I will exit at a loss if price falls below the next support area .
This is what I enter in my trading journal:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-01 USDCHF Long With trend Up Horizontal Support Pin Bar retrace
In this post I will give an overview of commonly used trading approaches. This is the second article in a series of articles I am writing to help anyone get started trading. If you haven't read my first article in this series yet, then read that one first at:
Japanese candlestick charts are arguably the most commonly used charts. It has not always been that way. Candlestick charting techniques were only introduced to western traders in the late 70s by Steve Nison.
A bit of history of Candlestick Charting
Candlestick charting was invented by a rice merchant named Munehisa Homma in Kyoto, Japan in the late 1700s. The merchant made a fortune trading rice and rice warehouse receipts, the first futures contract ever, using only historical daily price information that he visualized using what we now call Candlestick Charts. The Japanese Candlestick Charts have since than only been used used by Japanese traders until the American Steve Nison introduced the techniques to the West in the late 70s. He is still the Western authority on Candlestick Charting. You can find out more about him on www.candlecharts.com. I have one of his books:
This post is the first in a series of posts I am writing to guide you in getting started trading. You could skip this post and go straight to the next posts if you feel that the answer to the question "Why Trade" is not of value to your trading. But for me personally answering this question changed me from being a break even trader to a trader with an edge in the markets. Trading consistently profitably is hard and it takes a lot of practice. Therefore let's talk first about a fundamental question most people skip before they take up the challenge of trading or any other challenge for that matter.
By asking what people want to learn from me, it became clear to me that I should continue the getting started trading series by showing how I trade myself and how I produced the results I have so far. I am talking about trading here, not investing. Investing can take a completely different approach from trading, like buying stocks for their cash flow (from dividends and selling option premium for example) or real estate for the cash flow (from rent) instead of (only) for the capital gain of the asset. Trading is about buying low and selling high, but also about selling high and buying back lower. This is something I do actively. If you are more into investing, then stick around as well. Many of the trading principles that I will discuss also apply to investing. And nowadays to be a successful investor it helps to approach investing like a trader. I believe buy and hold is a dead strategy. Trading the way I do is at the other end of the spectrum, but it will help you as an investor to…