Though this month has not yet finished, I am writing my review today, because I won’t trade for the next two days.

The loss of the last month has been fully recovered and has ended with a total profit of 32%. So my current trading balance is $180 now – that’s a total of 80% profit in 3 months of trading. 80% in 3 months equals ~21% per month. Should I be able to keep this quote up the next months, then I would reach the $100,000 in 3 years

Oh well… I guess I will reduce the risk, if I should ever reach more than $1,000. And taxes – 25% of all profits are eaten by the tax.

Point & Figure indicator Updates

I have been busy again and have updated the Point & Figure indicator. Though the indicator is already quite fast and I can have more then 20 charts opened simultaneously, I have found some code that I could speed up a little bit. I don’t think anyone will notice the difference anyway

For the time beeing, I am satisfied with the result – but I will try to find more bottle necks in the future.

Another major update is the implementation of Moving Averages in Point & Figure. This is still in experimental phase and I will have to check it out for the next weeks, before I go public with this. By now, it’s possible to plot up to 3 Moving Averages, each of which can be calculated as simple, exponential, linear weighted and smoothed average – as known from the candlestick and bar charts. I could add more than 3 Moving Averages, but this is sufficient for me. If anyone needs more, please let me know.

Here’s a screenshot of EURUSD 2 x 10 (h/l) with 2 moving averages 5 SMA and 10 EMA:

Recommended books

I have read and am still reading 3 books about Point & Figure charts. One of them is Friedrich W. Tölke, it’s from 1986 and in German. Some interesting ideas I got from that book, like trading the shoulder-head-shoulder pattern in Point & Figure Charts, as if it were bar charts. But this assumes that I should use non-45-degree trendlines – and that’s something I try to avoid.

But those two books are really worth beeing read: The Definitive Guide to Point and Figure and Complete Guide to Point-and-Figure Charting

Both books cover in detail the construction of Point & Figure charts, different chart patterns, drawing trendlines, using stop orders etc. The first one is more detailed and also covers aspects like Moving Averages – guess where my idea came from

The second books covers some analysis of the efficiency of Point & Figure charts through various studies (Kermit & Zieg, Prof. Robert E. Davis…) and has suggested to use a reversal of 2 boxes instead of 3 for short time trading. I followed this advise and tried 2 x 10 on EURUSD (see screenshot above). Worked very well and I will use it further on.

I really want to write some reviews of my favorite Point & Figure books – I hope to find the time for that.

To-Do

I have not forgotten the short scalping video, that I wanted to make. But the problem was, that I wanted to keep it short. Everytime I started the screen capture software, I couldn’t get an entry. I just don’t want you to watch 20 minutes of prices moving up and down, before I enter a position for only a few seconds. I’ll try to get a video cutting software and cut out the interesting part.

The pages about Point & Figure Charts are still empty, and I am really sorry for that. I have started to make some screenshots of basic buy and sell signals, trendlines and how to apply risk management. But the text is still missing. I will catch up on that!

Implementing more features in the indicator:

• Giving access to the Point & Figure charts for software developers through iCustom
• Applying chart construction on realtime tick data instead of high/low or close values
• (Maybe some other indicators like Bollinger Bands?)
• Basic Pattern recognition

I can’t wait to have all those things finished, that I’ve mentioned above. Because then I could focus more on trading than on writing and programming (not to speak of my normal life beside all that )