Feb 22
Another Profitable MACD Divergence Trade
I paper traded this… Made a profit of 753.5 with 2 standard lots… hahaha… a bit meaningless to blog about this… but just wanted to keep a record of some profitable (and non-profitable) MACD trades… Can serve as future reference…
Anyway, I’ve ordered the two books “Reading Price Charts Bar by Bar” and “Trade What You See“, just waiting for them to be delivered….
A bit restless lately… Maybe because my workload is a bit too light for this year… So, I’ve come up with a new slogan for my life…
“A goal a day keeps my lethargy away… ”
I need to work on some projects… else I’ll just be wasting my time away… Considering doing a PhD… But problem is, I can’t seem to find my Masters Degree transcript… I dunno if I lost it or I never collected it in the first place… Now that I need it, I can’t find it… Trying to get a re-print… but no reply from the University yet… oh well…
Meanwhile, to kill time, I’ve started doing some programming for my website…. very simple stuff… cos I’ve not done it for a long time…. One such project can be found here…
http://www.mymillionairegoal.com/trading/brokersrate.php
It’s still “under construction” (as of 22 Feb 2010)… will probably complete it by tomorrow…
If you have any programming ideas to suggest, do drop me a comment….
Feb 21
Recently, I’ve been practicing trading forex using MACD divergence, coupled with price action…. results have been pretty good so far… A quick glance at any chart will easily reveal that MACD divergence is a reasonably reliable pattern, with a high probability of success… When this pattern is combined with price action, the chance of success is even higher… Personally, I love it when a Pinocchio bar or an Engulfing bar appears in conjunction with a MACD divergence…. chances of the trade being profitable is very high when that happens….
A Profitable MACD Divergence Trade
However, like any other trading strategy, MACD divergence will give false signals as well, especially when the market is strongly trending, and reversals are too short-lived to be profitable… I’m not sure how I can filter out such false signals without filtering out the profitable ones as well… I think a better way may be to focus less on the entry, but more on the exit… Since I entered the trade using price action, a good way to exit will be to use price action as well…. For instance, if after buying a pair, some bearish price action is formed on the chart, I can consider exiting part of my positions first to limit my risk…
A Non-Profitable MACD Divergence Trade
Feb 13
Currently, I’m spending a lot of time learning how to trade forex…. I’ve coded a lot of EAs, but none of them were totally satisfactory…. So far, the best EAs are still those that trade by following the trend… Turtle trading being one of them… If you are interested, you can download my EAs from the Forex Expert Advisor page.
Please note that I DO NOT trade these EAs with real money, I use them solely for backtesting purposes… As such, please DO NOT trade the EAs that I posted…unless you got too much money to burn and want to lose some…
Anyway, although turtle trading is pretty profitable, I know I’m not able to trade the system because I am psychologically not strong enough to stand long periods of losses… Knowing my weakness is one of my strength in trading….
So, I’m still searching for the “Holy Grail”… Currently, I’m investigating trading with price action…. results are reasonably good… but it’s too early for me to conclude anything… I need to learn a lot more… so, I’m ordering these two books from Amazon….
- Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader (Wiley Trading)
- Trade What You See: How To Profit from Pattern Recognition (Wiley Trading)
Let’s hope this is my “holy grail”… I always believe that to succeed in trading, you have to find a system that suits your personality…. So, you need to be constantly exploring, going through the trial-and-error process until you finally find one that resonates with you….
