Breakout Fakeout

I am a day late with this update.  It is a Saturday afternoon in Manchester and as usual, it is cloudy and rain is expected soon.  There is a reason it is known as the 'Rainy City'.

I tried something yesterday that I dont like doing, that is trading breakouts, rather than the retrace back to the breakout area.  I tried it twice, and twice it was horrible.  I am never going to do that again. If I am going to trade breakouts then I am not going to join in the momentum breakout, but to do what I always do and that is to look for a good move away and then a retrace to the breakout area.

My other entries were also not as good as they have been recently either.  However, as I am very adept at playing out of bunkers, I still made a good profit on my Sim account after suffering large drawdowns.  Good thing Gold was not in a runaway trend and was rather choppy.  Although the range of each swing was around $10.

On a better note I took a counter trend trade on my live account for 10 ticks.  This was my first live trade this week.  I never once went into deficit on this one.  I should have held it to the nearest supply zone for 40 ticks, but I am still too nervous when in a trade.  What I need, is to have one good trade to give me confidence to hold on to these trades longer.

I am still finding good supply and demand zones, both near term and longer term, so I will look to try and trade from these area rather than go for the silly counter trend trades that I always seem to take.  The only CT trades will be based on the longer term demand and supply zones.

I have also been using a new indicator found at BMT, to identify exhaustion in the momentum. I requested some improvements to it, someone at BMT (Silvester) has kindly made the changes to it and I can now visualise these exhaustion bars much better.  The way I am going to use it is to see exhaustion in the retrace to get back into the trend trade, rather than getting in a CT trade at exhaustion of the trend.

It is also very good at showing exhaustion at the Supply and Demand zones so, hopefully, my performance will improve next week when I take those trades.  With the addition of a sound alert, I am hoping I can trade both CL and GC at the same time, as I have found it impossible to focus on more than one instrument.

All, I need to do now, is to accept my losses so I do not hang on to a losing trade too long thus enabling me to get in on the better trades.