KISS Trading ...

P2 Project will be restarted on 1st January

2015-12-31T22:05:00.001+00:00

I've decided to restart P2 Project, now with a simplified trading plan V3, but with the same goals as before. During last three months the Project was several times out of track, due overtrading, trading outside planned timetable and lack of efficient risk control. I must confess I did not pay the necessary attention as if I was trading with real money. This is one of the problems with demo accounts. Sometimes we facilitate a little.

Now I have better conditions to control risk and I have also decided to introduce some small changes in the trading plan, turning it easier to be applied.

The trading account will be loaded with 2500€ instead 1500€ as before and I will be trading only dax30 ou dj30.

P2 PROJECT - Trading Plan V3

1st Jan 2016

1. Instruments to trade

Dax and/or DJ.

2. Trading platform and computer
MetaTrader 4 (MT4), a Windows-based electronic trading platform.
Mac Mini Intel Core 2 Duo CPU @2.26GHz with 4GB RAM Windows 7 Ultimate.

3. Primary Chart Interval that Will Be Used to Make Trading Decisions

TF 15M will be the primary chart interval.

4. Indicators and settings that will be applied to the charts

Chart TF15M - WMA 2 close price, WMA 50 close price, WMA 100 close price

WMA - Weighted Moving Average

5. Rules for Position Sizing

Trade only 1 or 2 mini lots.
Avoid to use more than 25% of margin at anytime.

6. Entry Rules

Avoid to trade during main economic news release time.

The following setups will be used:

a) To Buy

Chart TF15M - WMA2 must be > WMA50 and > WMA100

b) To Sell

Chart TF15M - WMA2 must be < WMA50 and < WMA100

When buying or selling new positions, normal stop losses will never be used.
A dynamic EA, will take care of all above conditions, closing all positions as soon one condition is false.
Another dynamic EA will be used to buy or sell new positions, as soon as, entry rules are true.
An EA will take care of losses. EA, while working, will not think twice, neither sleep. Will be my best friend, while I am working, sleeping or having a good time :-)

7. Exit Rules

a) With profit

- Any positions can be closed manually. Better to add small profits instead of having only one or two daily big profits. This will be done manually.

- Any position can be closed with the help of a simple EA, as soon as, one of the above entry conditions is false.
- A maximum drawdown EA will help to take care of the account, closing all open open trades, with losses, as soon as limit is reached.

A simple indicator will give date, percentage month profit, instrument open profit.

b) With loss

When entry conditions are no more true.
Maximum drawdown limit reached (5%)

8. Performance

Trading performance will be available, using a free and online automated analytical tool from Myfxbook, connected to the trading demo account.

P1 4 Months Results

2015-12-31T13:43:00.000+00:00

+ 532% / 4 months

This is the end of this P1 Project as a demo, and I am very glad with the results. Few mistakes were easily identified and some measures were taken to avoid them in future. This easy trading Project has all the necessary conditions to be a success.

Next month will restart the Project, now with a real account and the results will be posted here as before.

P1 Weekly Results

2015-12-31T13:27:00.001+00:00

+7,8%

P1 Daily Results

2015-12-30T15:23:00.000+00:00

+3% / 298m

P1 Daily Results

2015-12-29T13:38:00.001+00:00

+1,2% / 11m

P1 Daily Results

2015-12-28T12:19:00.002+00:00

+3,51% / 135m

P1 Project - restart with real money

2015-12-26T18:01:00.000+00:00

P1 Project is lived for last 3 months with wonderful results on a demo account.

The main goal behind this project have been, using a KISS methodology, to stop trading as soon as 1% daily profit is obtained. Nice profit, less daily risk and more time for others daily activities.

What went wrong during these 3 months period? For 2 times, the trading plan was not strictly fulfilled, with overtrading and exceeding maximum allowed transaction loss and account loss.

The fault was 100% mine, once my control risk EA was not installed, and instead following the trading plan rules, I decided to change the trading strategy. This is the wrong way to go. There is only one right way to trade with success - following the trading plan.

This is what I pretend to do, at the beginning of the next year, now with real money. From next 1st January 2016, I will be restarting P1 Project, now with a real account and keeping the actual trading plan. I will continue to post my daily results.

Any comment or suggestion will be always welcome.

P1 Weekly Results

2015-12-25T20:14:00.003+00:00

+17,8%

P1 Daily Results

2015-12-23T08:13:00.002+00:00

+1,9% / 12m

P1 Weekly Results

2015-12-18T08:20:00.001+00:00

+7%

P1 Daily Results

2015-12-18T08:09:00.001+00:00

+1,2% / 3m

P1 Daily Results

2015-12-17T08:27:00.000+00:00

+1.2% / 17m

P1 Daily Results

2015-12-16T14:19:00.005+00:00

+1,36% / 45m

P1 Daily Results

2015-12-15T13:44:00.005+00:00

+2,1% /341m

P1 Daily Results

2015-12-14T20:57:00.001+00:00

+3,4% / 732m

P1 Main Virtues

2015-12-12T16:17:00.001+00:00

After three months trading P1 Project, I would like to highlight these virtues of the Project:

small daily risc
high probability of success
little trading time
simplicity of the trading algorithm (KISS)

I have no doubt, my daily trading times can and must be improved. Being improved I reduce the time I am trading, and this way I have less risc. I need to have less of a hurry to start trading (and the daily clock starts as soon as I make my 1st transaction, and only stop when I close the last daily open order) and wait for better opportunity, with higher volatility. This is an aspect that must be studied and improved.

But ... never forget the importance to fulfill closely with the trading plan, to cut the losses as soon as possible, to be patience, disciplined and concentrated. These are the keys for the success.

From the beginning of this Project, three big mistakes due overtrading could have been fatal for this Project. This was due of difficulty to assume losses. Who likes to accept losses? Please never do that! You don't need to win on every transaction or day. Cut your losses as soon as possible. Look, if suddenly you have losses, that means something went wrong, probably you are out of your trading plan, and the open orders must be quickly closed. Never try to guess what is going to happen. This was my problem with these mistakes. Do you see the reason I am always saying to be disciplined with your trading plan? I know, it's not simple. But here is where the EAs can and must play a nice role, helping us not to cross our red lines.

More, don't pay attention to what other "illuminated" traders are saying about evolution of prices. You don't need their help. You have your own trading plan, don't you?. If you don't believe on your trading plan, please get a better one or stop trading, otherwise you are going to loose your money.

Try to identify your daily difficulties and erros and every day try to improve something, give small steps, don't be in a hurry and try to avoid to do the same errors. You don't need to complicate the way you trade. Try to KISS and be happy !

P1 Monthly Results

2015-12-12T14:55:00.001+00:00

P1 Project has just ended its 3rd month of life, and I am pleased to share with you the results.

This was a normal month without mistakes, without problems, without losses and with some daily gains a little higher than 1%. On the future I need to take more care and avoid more daily risk.

I remember daily goal of this Project is only 1% of profit, with an initial investment of 1.500€.

P1 Weekly Results

2015-12-11T08:54:00.000+00:00

+11,5%

P1 Daily Results

2015-12-11T08:33:00.004+00:00

+1,6% / 31m

P1 Daily Results

2015-12-10T14:32:00.003+00:00

+1,3% / 54m

P1 Daily Results

2015-12-09T11:33:00.002+00:00

+2,9% / 208m

P1 Daily Results

2015-12-08T14:49:00.001+00:00

+2,71% / 69m

P3 Project - The END

2015-12-07T16:16:00.000+00:00

Time to end P3 Project. It's completely out of control, and out of the initial trading plan. The fault is 100% mine. I did a lot of mistakes, like overtrading. I can not blame the trading plan. May be I will come back later with the same goal of this Project, because I believe on it.

At this moment my main focus will be mainly concentrated on P1 Project and ABC Project on another blog, as well as on my private Projects...

P1 Daily Results

2015-12-07T08:16:00.001+00:00

+2,53% / 13m

P1 Weekly Results

2015-12-04T13:47:00.001+00:00

+15,4%