Monday 14th of September

Hope you had a great weekend! Mine was spent finishing my book, backtesting the 4hour scale in entries as well as watching this amazing formula 1 race, was a rather fun one!

Anyway…. Let’s get started

Daily Watchlist


GBP/CAD

Before I breakdown why I like GBP/CAD I’ll mention to the people who read my previous daily watchlist that I no longer consider CAD/JPY as valid, that phase line is definitely not the prettiest so I’ll keep my money and avoid risking it on a B set-up

Now onto GBP/CAD – I really like this demand zone, it’s very clear and has a weekly stack. I don’t know what else to say to be honest, I’m now just waiting for the price to enter the zone and give me an entry signal.

There was a potential entry, however the 4hour did not fulfil every single criteria I had, it misses one, so I stayed on the side-lines.

Having that extra criteria reduces my long term returns, so it was hard to resist, however I use that extra criteria to increase my strike rate (which makes it go from 53 to 56%) as well as my average return (from 0,99% to 1,2%)

https://www.tradingview.com/x/1DdrbOz8/

1DdrbOz8 (2119×1323)


GBP/CHF

Moving onto GBP/CHF, I’ll also be keen for a potential long set-up, I prefer GBP/CAD I’ll admit, however this presents an edge and I believe this demand zone is also valid.

It’s the imbalance at the best value, the ones lower are not valid, so that leaves only this one

You can also draw another zone from the doji more or less in the middle of the screenshot, it breaks a clear phase line, it’s not the cleanest but would be valid (I would prefer taking that over CAD/JPY for instance)

All in all, it’s now all about executing my trading plan once I can spot a valid entry signal.

https://www.tradingview.com/x/pEjOeyjR/

pEjOeyjR (1796×1323)

GBP/NZD

Pound Kiwi is another pair I’ll be keeping a keen eye on for today, while I’m unsure if I should use the trendline break zone (since that zone was created based off the rejection of a previous zone)

I believe that we can use the counterzone to entern this position.

It is true that the price did break this zone, however, as per my rules two daily candles need to close outside of a zone for the zone to be broken, hence this zone remains valid

On top of that, the weekly is valid, and we can also observe a clear monthly ascending trendline. All in all I like it 🙂

fr45T93U (1796×1323)

https://www.tradingview.com/x/fr45T93U/

That;s all for today!

Book wise…

I’ve finished reading, “How to Think Like a Roman Emperor” by Donald Robertson

Really enjoyed it, I’d argue one of the best books about stoicism, however, it may not be the best primer to this philosophy. That being said, if you’ve read any work from Ryan Holiday, you will probably enjoy it, it shows how Marcus Aurelius applied Stoicism in his life.

I’ll leave you with the last highlighted part I have (I have 10 pages of highlights):

Things external to our own character such as health, wealth, and reputation are neither good nor bad.

They present us with opportunities, which the wise man uses well and the fool badly.

Though men desire wealth and other such things, these no more improve a man’s soul than a golden bridle improves a horse

My next book will probably be a “chill” one then I’ll probably jump back into some of Harari works, it’s been a while. But Plutarch’s On Sparta does tempt me a lot….

Tweet wise…. Here’s my favourite of the day

A nice and concise one.

Noticed that my backtested strategy had loosing periods, up to 8R!

I have to say, that the “when it rains it pours” would define trading very well

Both in terms of losses and in terms of winners.

Some periods will be negative, others extrelemy positive

Remember to manage your risk

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