The last month ended with a plus of $25, which equals 13.89%. So my current account balance is $205 now. That’s a 105% profit in less than 5 months.

I could enhace the Point & Figure indicator during the last month, too. At the moment I am implementing a real time based chart creation. So the chart will be updated with every tick instead of after the close of a bar. But this leads to some problems:

It’s not possible to access tick data in Metatrader, so I have to build the chart based on the current method (high/low or close values of closed bars) first and then switch to tick data. If I would start with tick based chart creation right away, without building the chart on closed bars first, the chart would always be empty in the beginning and some time has to pass before the chart is filled with much enough data to be usefull for trading.

If the chart is updated in realtime, based on tick data, the cpu usage will be much bigger than it is now. If you are using the chart on the 1 hour timeframe, it’s only updated once per hour. In realtime mode, it’s updated up to a few times per second. So it could slow down Metatrader if you’re using many charts together with a long history (which leads to a bigger chart). I will add a maximum history value, so that you can select the number of bars that shall be used for the creation of the chart. It’s not necessary to have a history back to 1990 when you’re daytrading with small box size.

I am still in a learning process – and trading will always be a constant learning process – and so I am not yet finished with my trading method and style. That’s why I am still testing different setups and timeframes, as well as trading instruments. At the moment, I have filtered out my 4 favorite pairs that I trade:

EURUSD, GBPUPS, EURJPY and USDJPY. I don’t have any other pairs that I watch at the moment.

Though I wanted to close each trade overnight, it happens that I hold a position for more than one day. And often, this trades become very profitable for me. So beside daytrading, I apparenty also am a swing trader… But it doesn’t happen very often. Most of the time this happens when I open a smaller position where a bigger drawdown wouldn’t hurt me much and I am not so afraid of a losing position.

Moving averages is something that I have been using to filter out some of my trades. I wait for two moving averages to cross and then I look out for the next buy signal. The crossing of two EMAs is not a signal itself, though! Very often, the crossing of two EMAs (I am using 10 pips boxsize with a reversal of of lenght 2, one EMA 3 and one EMA of lenght is near the crossing of a bullish or bearish trendline.

Here is a screenshot:

Future trading

Beside Forex, there are also other interesting markets. I have demo traded Euro Bund and Euro Bobl and this seems very interesting to me. The opening time of the exchange is from 8-22 in my local time, so there’s no need to be afraid that in asian session the markets made a major up- or down move. Each day at 8 it’s “tabula rasa” and everyone starts at the same time. In combination with pivot prices, this instrument is nice to trade:

I will demo trade the Bund and Bobl for the next weeks and maybe add it to my watch list.

Future Point & Figure indicator versions

As mentioned before, I will implement realtime based chart updates as the next major enhancement. Beside that, I will split up the current indicator and have seperate indicators for Point & Figure moving averages, Bollinger bands and MACD. At the moment only one Bollinger band is possible and a maximum of 3 moving averages. The next version won’t have this limitation anymore.

Wyckoff method. Point & Figure charts with a reversal of 1 have one common issue. If there are many columns with only 1 box, the chart becomes very broad. And also 45 degree trendlines aren’t useful anymore. The solution is, that whenever there is one column with only one box in it, it gets merged with the next or previous one. That means there is an X and an O allowed in the same column. There always have to be at least 2 boxes in each column – this method is named Wyckoff method – you may take a look at this type of charts here.