Many hours of YouTube later, I'm pretty fixed on my new strategy. RSI-1mins are way too volatile. So I've stopped trading off that time frame. I stick to RSI-15min and above to trigger my trades.
Firstly though, I will determine the direction for the day. This depends on the slope of the MA6 1-day time-frame. Upward buy, downward sell. Then I'll check the economic calender to see if there any times I should be aware of to watch for slippage.
Next my price entry would be at the MA6 mark. If it doesn't hit, then I wouldn't trade. Or I could use the RSI-30/70 15MINS/1HR as the indicator.
And that's pretty much it.
The idea that big institutions eat up your stop losses is also a big change to my strategy. This accounts for the crazy spikes when you least expect it, which then return to their original price points. With the MA6 direction of the day, I keep my emotions in check and wait out the trade. I only close out or hedge if the MA6 changes direction that day.
So far this has helped me recoup $700 in losses and I'm now $190 up off a $5000 account. Let's see where this takes us!
Yours,
X
Wednesday, May 24, 2017
Monday, March 27, 2017
Latest Strategy
Been continuing to read up and refine my strategy. Have come up with a pretty good one I feel:
Buy at RSI 1min 30, but only when Bollinger Band (BB) is below the default lower threshold; sell when RSI is 70 but only when BB is above the higher threshold.
Exit when tgt is met, or when RSI hits the opposite number. Can afford to keep holding if the RSI swing is still earning a profit, cos it would probably rebound again.
Yours,
X
Buy at RSI 1min 30, but only when Bollinger Band (BB) is below the default lower threshold; sell when RSI is 70 but only when BB is above the higher threshold.
Exit when tgt is met, or when RSI hits the opposite number. Can afford to keep holding if the RSI swing is still earning a profit, cos it would probably rebound again.
Yours,
X
Wednesday, March 15, 2017
16 Mar 2017 - 0.77
Wow. Today the AUD rose back above 0.77. This means that had I not closed out my position on 3 Mar, I wouldn't have lost all that money. Bittersweet feelings really. On one hand, I'm upset I didn't hold. On the other, it means my system still works! Oh well, the journey will continue another day...
Yours,
X
Yours,
X
RSI M1 Strategy
After back testing this strategy, it seems to work pretty well. Going long at 30 and short at 70, closing each position regardless when it hits 70 and 30 respectively. Let's keep testing this out.
Yours,
X
Yours,
X
Wednesday, March 8, 2017
9 Mar 2017 - Bears are at it
Whoa. 0.752 when I checked in today. We're going back down. RSI 1 day still around 40, so we might still see it heading south a little. Resistance probably at around 0.75, previously hit in Jan.
Somehow, observing as an outsider is much more peaceful. Still, I'm looking forward to the day when I've got enough spare funds to make a meaningful "comeback". Heh.
Yours,
X
Somehow, observing as an outsider is much more peaceful. Still, I'm looking forward to the day when I've got enough spare funds to make a meaningful "comeback". Heh.
Yours,
X
Tuesday, March 7, 2017
7 Mar 2017 - 0.763
So today saw the AUD recover to 0.763. Again, had I waited it out like a good boy, I could have recouped even more losses. Would've been less that a S$2k loss, i.e. an overall profit still since the start of the journey.
Still, peace of mind is priceless. And again it validates my system (so to speak), that if you can hold out, you'll probably be fine.
Yours,
X
Still, peace of mind is priceless. And again it validates my system (so to speak), that if you can hold out, you'll probably be fine.
Yours,
X
Friday, March 3, 2017
3 Mar 2017 - close
Once again, the earlier lesson learnt was not applied. Having closed out my positions at 0.754, turns out the AUD closed today at 0.759. Had I had the guts to stick to my system, at the very least I would have recouped half of my losses. A shame? Well, kind of. But in the grander scheme of things, it makes me confident that CFDs can still indeed be a viable source of income. As long as you're disciplined, and actually look at your positions while they're open, it would prevent too many heart attacks! Still, peace of mind is priceless, and I had a really good sleep last night!
Yours,
X
Yours,
X
Thursday, March 2, 2017
3 Mar 2017 - losses confirmed
AUD hit 0.75425. I went into a margin call, so decided to cut losses. Lost about S$5k in total. But with some holding power, could have trimmed that by abt S$750 as the rally finally began right then and it's back up at 0.755. But oh well, at least overall it's still not too bad. The question is whether my heart can still take this, haha!
Yours,
X
Yours,
X
3 Mar 2017 - not good
Yesterday might be an expensive lesson in discipline. I have a generic rule - no trading at home, and I generally don't like going long (due to the RSI 1 day being quite high).
However, when my resistance line alert was triggered at abt 1630hrs, I tried for a quick 2 pip limit buy at 0.76511. RSI (1 min) wasn't too good, abt 40+, but I went anyway. And it just kept dropping. Woke up today to see a huge S$5k paper loss. Well I've got abt 1k more before I end up in margin call. Overall, I'd say this investment journey is still break even as I've made some money on the stock exchange as well. So yeah, this might really be the end. We'll just have to wait and see.
Yours,
X
However, when my resistance line alert was triggered at abt 1630hrs, I tried for a quick 2 pip limit buy at 0.76511. RSI (1 min) wasn't too good, abt 40+, but I went anyway. And it just kept dropping. Woke up today to see a huge S$5k paper loss. Well I've got abt 1k more before I end up in margin call. Overall, I'd say this investment journey is still break even as I've made some money on the stock exchange as well. So yeah, this might really be the end. We'll just have to wait and see.
Yours,
X
Wednesday, March 1, 2017
2 Mar 2017 - S$180
Woke up this morning and saw that the AUD/USD rate was at 0.768. Now I normally don't trade before 0830hrs Singapore time, cos that's when most ABS reports are released in Canberra that might cause spikes in the rates. Also the spread becomes about 1.5 pips, more than double the 0.6 that I usually trade on. However, here comes the benefit of understanding one currency pair well - I knew that the RSI (1 day) is at 60+, so that's a long term downtrend. I also knew from yesterday that it hit 0.77 for a bit, before dropping to 0.74. So 0.768 was pretty high if you ask me. I saw it drop to 0.76796 and I decided to just go for it, without checking the candles or RSI.
At the same time, I'm not that brave right - so instead of going on my usual US$5 contract, I sold a US$2 contract. Reason is this - if I'm wrong and the price spikes, I can still go in again at 0.77, and whatever earnings I make from that second position, should be able to cover the losses from the first position. And if it goes waaaay beyond 0.77, I would have lost my account anyway, so it doesn't matter.
At the same time, I didn't want to have to keep taking positions throughout the day to hit my target of S$140. So instead of my usual 2 pip take profit, I went for 6 pips instead. Should have been 5 pips based on my target, but well, if it can drop to 5 pips, it should hit 6 pips. Besides, that wouldn't have brought me near the day's low at all, so why not.
Lo and behold, 15 mins later, I got a buzz for the auto close. Kicking myself, cos if I'd gone with US$5, I would have made S$400 odd today. Kicking myself cos right now, it's at 0.7662 - so if I hadn't taken profit so early, I would have made even more - S$380 on a US$2, or S$1,350 on a US$5.
But hey, I have a plan, and I'm sticking to it. All done for the day.
Then I spotted an entry point at 0.76511. RSI (1 min) was at 30, so I bought US$5 2 pip limit. But then I had to go charge my phone and as you know by now, I don't really like buying, so I wasn't too confident just leaving it alone. I then closed the position when it broke even. When I returned to my phone later though, my 2 pip limit alert was triggered, so it was a missed opportunity, but hey yet another verification of my system. So all in all, still good :)
224 days to go.
Yours,
X
At the same time, I'm not that brave right - so instead of going on my usual US$5 contract, I sold a US$2 contract. Reason is this - if I'm wrong and the price spikes, I can still go in again at 0.77, and whatever earnings I make from that second position, should be able to cover the losses from the first position. And if it goes waaaay beyond 0.77, I would have lost my account anyway, so it doesn't matter.
At the same time, I didn't want to have to keep taking positions throughout the day to hit my target of S$140. So instead of my usual 2 pip take profit, I went for 6 pips instead. Should have been 5 pips based on my target, but well, if it can drop to 5 pips, it should hit 6 pips. Besides, that wouldn't have brought me near the day's low at all, so why not.
Lo and behold, 15 mins later, I got a buzz for the auto close. Kicking myself, cos if I'd gone with US$5, I would have made S$400 odd today. Kicking myself cos right now, it's at 0.7662 - so if I hadn't taken profit so early, I would have made even more - S$380 on a US$2, or S$1,350 on a US$5.
But hey, I have a plan, and I'm sticking to it. All done for the day.
Then I spotted an entry point at 0.76511. RSI (1 min) was at 30, so I bought US$5 2 pip limit. But then I had to go charge my phone and as you know by now, I don't really like buying, so I wasn't too confident just leaving it alone. I then closed the position when it broke even. When I returned to my phone later though, my 2 pip limit alert was triggered, so it was a missed opportunity, but hey yet another verification of my system. So all in all, still good :)
224 days to go.
Yours,
X
Tuesday, February 28, 2017
1 Mar 2017 - S$240
So after going through the initial spike, I spotted a sort of resistance line, and with the RSI (1 min) at around 60+ together with the RSI (1 day) at 60+ too, I shorted at about 0.76609. After about an hour, the position handn't closed, so I took a quick glance. Oh man! 2 crazy spikes had happened and I was facing a S$2,500 paper loss! Stuck to my guns though, believing in my system and waited it out. Presto, it dipped back down, and I got a buzz saying the position closed at 0.76589. The day is done. Or so I thought.
Suddenly received an alert that a support line (0.76550) was hit. Checked the charts and saw that it had broken clear through to 0.76432. Decided to make a quick trade and went long for 2 pips. But it being so close to the end of the day, and furthermore going long when the RSI (1 day) is high, there some slight fears. Within the minute, I saw a drop to 0.76390. Then it rebounded to 0.76444. 12 points for a S$100 profit. I decided not to wait it out for another 8 points and S$40, so I closed the position pronto. That being said, right as I'm typing this, my 2 pip limit was hit. Well no worries, I had gained peace of mind, and further verification that my system still works. So all in all, a good day still.
228 days left.
Yours,
X
Suddenly received an alert that a support line (0.76550) was hit. Checked the charts and saw that it had broken clear through to 0.76432. Decided to make a quick trade and went long for 2 pips. But it being so close to the end of the day, and furthermore going long when the RSI (1 day) is high, there some slight fears. Within the minute, I saw a drop to 0.76390. Then it rebounded to 0.76444. 12 points for a S$100 profit. I decided not to wait it out for another 8 points and S$40, so I closed the position pronto. That being said, right as I'm typing this, my 2 pip limit was hit. Well no worries, I had gained peace of mind, and further verification that my system still works. So all in all, a good day still.
228 days left.
Yours,
X
1 Mar 2017 - Positive GDP Report
Right on the money! The positive growth as released by ABS saw a 20 pip spike at 1130hrs Cranberra time. Trading via news seems to be pretty accurate, at least for GDP that is. Too bad I didn't want to try that today and stayed well out of that time period. Now to observe the stabilising trend and hit the target for the day!
Yours,
X
Yours,
X
1 Mar 2017 - GDP report
The Australian GDP report 5206.0 is slated for release in about an hour's time. The last quarter's release (contraction of 0.5%) coincided with a pretty big drop in the exchange rate against the USD. This round, analysts are predicting a positive report, so it might be a good time to go long. Still, let's wait till the release is out, and cross check against generic price action and RSI.
Yours,
X
Yours,
X
Monday, February 27, 2017
28 Feb 2017 - S$328
Today was the first day I used strategies other than price action. So I saw that the default 14-period RSI (1 min) was above 70. I checked that against the overall price action for the day and indeed it was quite high. I then waited for the RSI to drop below 60 (that's my indicator of enough downswing), then I went short, for a 2 pip limit. In 5 mins, the position was closed. Of course, an hour later, it was 8 pips lower, meaning I could have in fact made S$560. But hey, I have a plan, and I'm sticking to it.
Later in the day, I spotted an RSI (1 min) at 30. As it broke the 40 mark, I went long and bought 5 contracts with a 2 pip limit. However, because I know that the AUD/USD is at RSI 60+ (1 day), the larger overall trending is downwards. As such, I get kinda scared going long at this period in time. So when my position didn't close within 5 mins, I decided to close early at a S$50 profit, instead of waiting it out. Turns out about 20 mins later, I hit the level - but peace of mind is priceless eh.
Then at about 1700hrs, I spotted an RSI (1 min) at 70. As it broke the 60 mark, I went short and bought 5 contracts with a 2 pip limit. Am I starting to sound like a broken recorder? Well that's the point. At the same time, there was a candlestick confirmation of a trend reversal (doji with long black bar), so I was pretty confident, not to mention the RSI (1 day) hovering at 60+ 70 over the past 2 months. True enough at about 1730hrs, the position closed. Total earnings today S$328. Not too bad at all.
229 days to go.
Yours,
X
Later in the day, I spotted an RSI (1 min) at 30. As it broke the 40 mark, I went long and bought 5 contracts with a 2 pip limit. However, because I know that the AUD/USD is at RSI 60+ (1 day), the larger overall trending is downwards. As such, I get kinda scared going long at this period in time. So when my position didn't close within 5 mins, I decided to close early at a S$50 profit, instead of waiting it out. Turns out about 20 mins later, I hit the level - but peace of mind is priceless eh.
Then at about 1700hrs, I spotted an RSI (1 min) at 70. As it broke the 60 mark, I went short and bought 5 contracts with a 2 pip limit. Am I starting to sound like a broken recorder? Well that's the point. At the same time, there was a candlestick confirmation of a trend reversal (doji with long black bar), so I was pretty confident, not to mention the RSI (1 day) hovering at 60+ 70 over the past 2 months. True enough at about 1730hrs, the position closed. Total earnings today S$328. Not too bad at all.
229 days to go.
Yours,
X
27 Feb 2017 - S$140
Today AUD/USD opened around 0.76696. When I woke up, it was at around 0.76700. There seemed to be a downward trend today, so I went short i.e. sold, and closed at 0.76680. This happened within about half an hour. S$140 for the day done before 9am.
However at lunch, I saw an RSI above 70, and since I feel the long term trend of AUD/USD is going downwards, I didn't see the harm in shorting it at 0.76817. After all, that was over a 100 points since opening. Turns out however, a huge uptick was in store and it went above 0.77. This gave me a paper loss of over 200 points i.e. $1,000. However, my instincts told me to wait it out. After all, I had taken a $1,200 lesson earlier in the month. True enough, the position finally closed at about 6pm, and that was another S$140 for the day.
231 days left.
Yours,
X
However at lunch, I saw an RSI above 70, and since I feel the long term trend of AUD/USD is going downwards, I didn't see the harm in shorting it at 0.76817. After all, that was over a 100 points since opening. Turns out however, a huge uptick was in store and it went above 0.77. This gave me a paper loss of over 200 points i.e. $1,000. However, my instincts told me to wait it out. After all, I had taken a $1,200 lesson earlier in the month. True enough, the position finally closed at about 6pm, and that was another S$140 for the day.
231 days left.
Yours,
X
My Vision
So the goal is to earn S$1,000 a day through CFDs. Right now I'm at S$140 - that's cos I'm trading US$5 contracts at a 2 pip limit (my initial investment was S$15,000). How is this going to pan out?
Firstly, understanding how to trade CFDs is important. Google "candlestick patterns" for a wealth of info. Also "price action" strategies, and "RSI indicators". These are what I'm using. I also picked just one currency pair (AUD/USD), so that I'd be well acquainted with its price action, and not waste my time constantly shopping around. I'm looking to earn money, not really super big money, so it's ok if I miss out on opportunities elsewhere. I'm also aware of the Australian Bureau of Statistics Calendar and that it's announcements are usually at 1130hrs Canberra time (0830hrs in Singapore, but 0930hrs from 2 Apr 2017 onwards due to daylight savings), so I'll usually wait an hour after that to trade in case there are crazy jumps in the exchange rate due to the news. It's also because it was the most affordable margin at S$2,200 per dollar contract on IG. I chose IG as my platform cos of its tight spread (0.6 pips) on AUD/USD, and the fact that it's regulated by MAS.
Next, I use a strategy of taking profit based on limits. The benefits of this is that I don't have to keep staring at the charts all day. Once I open a position, I leave it open till it closes. Some might call it risky, but so far it's been working great.
My CFD journey began on 9 Feb 2017. With an initial investment of $15,000, I made S$1,400 in ten days. But then, I began doubting my system and when I hit a paper loss of S$1,200 one day, I closed it out. This gave me a profit of S$200 in ten days. Still not too bad I thought - until my limit level was hit the next day (I realised this cos my earlier alert was triggered) - and that was my $1,200 lesson. Since then, I've never closed out a losing position, even going so far as to run a S$2,000 paper loss, pay S$50 in overnight fees, and finally ended up with a winning position. That was a long wait, but a rewarding one, affirming my overall strategy and understanding of my chosen forex pair AUD/USD.
So exactly when do I foresee me hitting my goal? Well, if everything pans out, this should happen in 231 weekdays' time. Here's how:
Currently, I'm trading $5 contracts. My safezone is S$3,200 per contract, which gives me a 70 pip (or 700 points) balance to ensure I don't enter a margin call. This means that for a US$5 contract, I need S$5 x 2,200 + $5 X 1000 in my account, i.e. S$16,000. At a profit of S$140 a day, I'll hit S$3,200 in 23 days. That's when I'll up it to a US$6 contract i.e. profit of $168 per day. Then that's gonna take me 19 days to hit S$3,200, before I up it to a US$7 contract. And so on and so forth. So if you do the math, I'm 231 days away from a US$36 contract, which at 2 pips a day gives you S$36 x 20 x 1.4 = S$1,008
Watch this space as I chart my journey to financial freedom!
Edit: If you've seen some of my later posts, you'll know that I've changed my trading system due to some massive losses. I'm now scalping 5 to 10 pips instead (since 9 Feb 18), with 2 rules on entry to prevent overloading. First, only trading at 2359hrs on Mondays, Tuesdays or Wednesdays, and only in the direction of a double bar. Second entry condition is that I also trade in the overall trend direction if I notice an equilibrium that day. So far this system works because I can take losses and still remain profitable (unlike my previous strategy), plus I don't have to constantly observe the charts if I don't have time. This strategy has seen me achieve my biggest gain so far (50% as of Apr 2018), and though that dropped down, I'm still profitable after 3 months of trading (longest record ever). The goal is to achieve 100% returns in a year, then I'll put in some serious-er cash (current capital investment of $250).
Edit 2: Again, I've changed up my strategy countlessly. Just check out the more recent posts, haha...
Yours,
X
Firstly, understanding how to trade CFDs is important. Google "candlestick patterns" for a wealth of info. Also "price action" strategies, and "RSI indicators". These are what I'm using. I also picked just one currency pair (AUD/USD), so that I'd be well acquainted with its price action, and not waste my time constantly shopping around. I'm looking to earn money, not really super big money, so it's ok if I miss out on opportunities elsewhere. I'm also aware of the Australian Bureau of Statistics Calendar and that it's announcements are usually at 1130hrs Canberra time (0830hrs in Singapore, but 0930hrs from 2 Apr 2017 onwards due to daylight savings), so I'll usually wait an hour after that to trade in case there are crazy jumps in the exchange rate due to the news. It's also because it was the most affordable margin at S$2,200 per dollar contract on IG. I chose IG as my platform cos of its tight spread (0.6 pips) on AUD/USD, and the fact that it's regulated by MAS.
Next, I use a strategy of taking profit based on limits. The benefits of this is that I don't have to keep staring at the charts all day. Once I open a position, I leave it open till it closes. Some might call it risky, but so far it's been working great.
My CFD journey began on 9 Feb 2017. With an initial investment of $15,000, I made S$1,400 in ten days. But then, I began doubting my system and when I hit a paper loss of S$1,200 one day, I closed it out. This gave me a profit of S$200 in ten days. Still not too bad I thought - until my limit level was hit the next day (I realised this cos my earlier alert was triggered) - and that was my $1,200 lesson. Since then, I've never closed out a losing position, even going so far as to run a S$2,000 paper loss, pay S$50 in overnight fees, and finally ended up with a winning position. That was a long wait, but a rewarding one, affirming my overall strategy and understanding of my chosen forex pair AUD/USD.
So exactly when do I foresee me hitting my goal? Well, if everything pans out, this should happen in 231 weekdays' time. Here's how:
Currently, I'm trading $5 contracts. My safezone is S$3,200 per contract, which gives me a 70 pip (or 700 points) balance to ensure I don't enter a margin call. This means that for a US$5 contract, I need S$5 x 2,200 + $5 X 1000 in my account, i.e. S$16,000. At a profit of S$140 a day, I'll hit S$3,200 in 23 days. That's when I'll up it to a US$6 contract i.e. profit of $168 per day. Then that's gonna take me 19 days to hit S$3,200, before I up it to a US$7 contract. And so on and so forth. So if you do the math, I'm 231 days away from a US$36 contract, which at 2 pips a day gives you S$36 x 20 x 1.4 = S$1,008
Watch this space as I chart my journey to financial freedom!
Edit: If you've seen some of my later posts, you'll know that I've changed my trading system due to some massive losses. I'm now scalping 5 to 10 pips instead (since 9 Feb 18), with 2 rules on entry to prevent overloading. First, only trading at 2359hrs on Mondays, Tuesdays or Wednesdays, and only in the direction of a double bar. Second entry condition is that I also trade in the overall trend direction if I notice an equilibrium that day. So far this system works because I can take losses and still remain profitable (unlike my previous strategy), plus I don't have to constantly observe the charts if I don't have time. This strategy has seen me achieve my biggest gain so far (50% as of Apr 2018), and though that dropped down, I'm still profitable after 3 months of trading (longest record ever). The goal is to achieve 100% returns in a year, then I'll put in some serious-er cash (current capital investment of $250).
Edit 2: Again, I've changed up my strategy countlessly. Just check out the more recent posts, haha...
Yours,
X
Introduction
Hi there. If you've found your way here, it means you might be somewhat like me - looking for a way to get out of the rat race, yet be able to survive in this little sunny island, with a satisfactory standard of living.
While I'm still doing alright in my regular day job, raising 4 kids, a mortgage, and a wife who stays home isn't easy.
We've tried a few methods, like setting up home businesses, getting my wife to write freelance, etc etc. It helps, but the going is still kinda rough.
Investments were probably another avenue to go - but living off a regular dividend yield of say 8% (which is pretty optimistic if you ask me), would require a capital outlay of about S$1.25m in order to achieve a S$100k annual income. Two issues with that. One - getting S$1.25m might take me many many many years, and two, ensuring a consistent 8% yield isn't as simple as ABC. Furthermore, S$100k a year for 5 of us makes our monthly per capita income S$1,700 - manageable, but by no means comfortable.
And so, this is where I found forex, CFDs, and the power of leveraging.
As I read up more and more about this financial instrument that's seemingly shrouded in mystery and jargon, I found my eyes opened to a world I never knew. Every day, I learned new things. And every day, I began earning (and losing).
This blog is then to record my journey towards financial freedom via CFDs, and I hope you find some interesting nuggets here and there too.
Yours,
X
While I'm still doing alright in my regular day job, raising 4 kids, a mortgage, and a wife who stays home isn't easy.
We've tried a few methods, like setting up home businesses, getting my wife to write freelance, etc etc. It helps, but the going is still kinda rough.
Investments were probably another avenue to go - but living off a regular dividend yield of say 8% (which is pretty optimistic if you ask me), would require a capital outlay of about S$1.25m in order to achieve a S$100k annual income. Two issues with that. One - getting S$1.25m might take me many many many years, and two, ensuring a consistent 8% yield isn't as simple as ABC. Furthermore, S$100k a year for 5 of us makes our monthly per capita income S$1,700 - manageable, but by no means comfortable.
And so, this is where I found forex, CFDs, and the power of leveraging.
As I read up more and more about this financial instrument that's seemingly shrouded in mystery and jargon, I found my eyes opened to a world I never knew. Every day, I learned new things. And every day, I began earning (and losing).
This blog is then to record my journey towards financial freedom via CFDs, and I hope you find some interesting nuggets here and there too.
Yours,
X
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