I know my systems work but my account is still negative. Why?

Because I do have the skill set required to trade it (yet). To trade these systems to their full potential I need the skills described in this post.

To be able to see key levels and trend lines and draw them on the charts

To trade in this style it is essential to be able to spot the levels where price is most likely to react. This is done by working down from the higher to lower time frames. I screenshot the charts each morning and then compare my levels to what actually happened at the close of play each day. See What the Dax did today

I also use calculated levels (pivots and camarilla levels), fibs and previous day high, low close. See How to calculate pivots and CBOL/CBOS.

To be able to distinguish between trending and corrective PA

My trendline breaking system works in trending PA but fails miserably when the market is ranging. The reverse is true for my 3Min Bolli system. This is no difficult to spot when I am using the higher time frame (tf) charts pre-open to assess the market’s mood. However, to trade profitably I need to be to do this in real time, by:

  • Given the PA context (from higher tfs), what will tell me that the market is trending and what will tell me that it is ranging?
  • What needs to happen for me to switch focus from trending to ranging strategies or visa-versa?

See How to identify a ranging market and how to trade it and How to identify a trending market and how to trade it.

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