I have decided to start a new journal because my other one has become much more about my life in general and its goings on.
I have found this business very paradoxical in nature. For example, risk is better controlled on large timeframes than small. This is a paradox. It seems on the surface that being able to risk only a hand full of ticks on ES in a 500 volume chart is less risk that a 3-4 point initial stop on a daily. But I contest it's more, because the probability of a trade working increases on the higher timeframe. By a lot. Also, some circles would call building a position or defending a position, adding to a loser or averaging down. These qualities are opposite, paradoxical. It comes down to market circumstances, the bigger picture.
This journal will focus solely on my business.
My trading is simple. But not easy. I trade value on large timeframes. Toward value. And to the other side of it. Risk is contained simply by trading from the edges of volume at support and resistance.
I Profile Volume on futures and forex (FX on swing trades only) and sometimes use TPO on forex. At times just a rectangle to delineate a trading range and some lines highlighting support and resistance. This is done on large timeframes. Profiling many days. Some of my favorite charts are daily and 120 minute 100,000 volume (i.e. ES). Markets with proportionately less volume like NQ use proportionately lower volume charts etc.
Index Future ES with NQ and YM as backups. Interest Rate futures ZF ZN ZB. FX: EURUSD, USDCHF, AUDUSD, USDJPY, GBPUSD, GBPJPY and EURJPY.
I have complete and absolute confidence in my approach because the entire point of the market, any market, is to expedite, accelerate, catalyze, advance, facilitate and promote the buying and selling, the trade. Value, revealed by the volume profile, is by definition the place where trade happens most. It makes perfect sense to buy when the price, below value, reaches support and sell as price, above value, reaches resistance.
Order flow is used for a few minutes before the trade to determine what order type is need to obtain fills. This is done with a "foot print" type chart (what the heck is the generic name for this chart please someone..lol) , Jigsaw tools and Price Squawk.
A small amount of information is needed to engage the market namely value areas in play, support and resistance and market internals (VIX ADD NYONLYTICK) in some sort of cooperation and the news cycle. This keeps my risk in check due to the inverse nature of info risk vs price risk.
Total stock market 52 week New High New Low contributes to market sentiment married to value.
I have come to realize over the past 8 years that planning and preparation are the keys for me. As a result I have created processes for every aspect of my business. From grading trades alpha, bravo or charlie excellent good average respectively, to forecasting revenue out 2-5 years. Trade grade directly impacts position sizing as does the account risk % schedule.