Okay it's time to write down the rules/ observations- to be added to as time goes by- and theoretically they shouldn't be made or changed in the middle of active trades!! (very easy to do when second guessing yourself).
1. The hourly strat (23-38-81) is the main one. When the EMAs cross they do it for a reason. Don't question why just reverse the position and go with it. If Trump has opened his mouth about something, or SA's financially doomed or whatever it will usually always be reflected in an EMA crossover (up or down). No need to know why...just trade !
2. The 5 minute strat (23-38-81) is like a tug boat, fine tuning the hourly strat. It obviously moves quicker and is there to almost protect the 1 hour strat (hedging where necessary).
3. Both the 1 hour and 5 min strategies will make money independent of each other in their respective time zones. Think of them as separate from each other.
4. Always fight the urge to be "right" (this is a work in progress !!). This strategy works best if you "Know" as little as possible about the markets. Trade it mathematically. It's a numbers and probability strategy. End of story.
5.Take each and every trade/ edge without fail- especially after a failed trade !!
6. Each trading day look at the charts of both strategies and make sure my positions correspond with the price action relative to the moving averages. In other words, based on the picture at any given time, would you rather be long or short, and make sure the positions are aligned to this. (this sounds obvious but anyone who trades will know the feeling of being on the wrong side of the market and staring in disbelief as the market runs away further from you).
7. The market gives and takes away just as quickly. When the market moves in my favour, be quick to take some money off the table. Experience has shown that more often than not the market will retrace somewhat -turning a great trade into an average one.
8. Always use a stop-loss. Not negotiable!- (IG Markets is good in this regard because their OTC platform means you can't be hit by stop-loss hunters as the Stop-Loss order sits on their server and not in the open market....).
9. Carefully consider holding positions over the weekend or at least closing half
10. Re-read the rules constantly !!
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