This week has been rough in futures. I tested some ideas and had mixed results, mostly costing me more than I should have allowed.
One of these tests was haphazardly taking a 5m long because the hammer was followed by a big bearish bar. However, there was no bullish bottom on any time frame at that point, and I was burned by this. This sent me into a revenge trading emotionally immature fit, costing me about $350 in losses on MNQ as I took 5 or 6 trades within 45 minutes.
I decided not to stop trading at that point as I had so many times in the past, because it was only 7:40 AM. I repeated some affirmations to myself about my ability and mental strength, and cut my losses by a quarter on my next trade. The following trade, I executed my entry perfectly, and was patient for 35 minutes, but finally got shaken out by a bullshit spike on 1m that took it from +25 to 0. Now I will watch if it continues as expected, but it is a valuable lesson I am learning again for the 50th time, to trust a perfect entry.
Note: The short on NQ does not look viable anymore, but it has yet to invalidate the original entry.
Forex
Forex has been brutal lately as well, taking my one successful demo account from +40% to below 30% this week. It’s an understandable drawdown and I’m not too concerned, but I am a bit anxious to see if my edge has already disappeared.
I’ve noticed that my other accounts are producing absolutely nothing of value besides proof that those algos do not work. Last time, I adjusted my GBP Live account’s algo to try to make something work, and so far it has not.
Today, I am adjusting all of my MACD3H algorithms to use a 1.5 profit target instead of 2. They have been steadily losing, and I’ve noticed several occasions where the profit was up significantly and came back to a loss. I will let this run for 2 weeks and see if these accounts recover at all. If they don’t, I will have to scrap those algos and try something else. The time is being wasted.