Introduction to My Trading Philosophy

Hello and welcome to my first post on CodeAndCandlesticks! Today, I’m excited to share with you my approach to trading, the strategies I use, and why I believe in the potential of combining software development with trading to achieve financial freedom.

The Foundation of My Trading Philosophy

“The trend is your friend”—is a phrase I’ve heard many times in the past, it only made sense after reading Alexander Elder’s Trading for a Living. Trading, to me, is a dynamic tug of war between buyers and sellers. I visualize trading entering the ocean when surfing: in order to ride the long waves you need to be mindful of the rip currents to take you to the big waves you wan’t to ride. My strategy is to align with the overall market direction on higher time frames and find precise entry points in shorter trends.

My Attraction to Trading

The allure of trading began with the dream of financial independence and the intellectual challenge it presents. It’s about cracking the code used by large trading firms and leveling the playing field for retail traders like us.

Key Strategies

My Journey with Trading Systems

I began my serious trading journey in May 2022 by investing in a set of mechanical swing and day trading strategies. As an inexperienced trader, these strategies provided slow growth on my account which, led me to pivot towards options trading with the Triple Sync Logic (TSL) method, which promised quick, high leveraged trades.

Mechanical vs. Discretionary Trading

I’ve learned that there are primarily two types of traders: mechanical and discretionary. Mechanical systems, like those from WBTrading, might lose their edge as they become popular, while discretionary systems like TSL encompass strict rules but a high degree of judgment.

Risk Management

I adhere to a strict risk management policy, risking no more than 1% of my account size on a single trade. However, this rule has been challenging to follow consistently, leading to several blown accounts. The lesson? Stick to your rules diligently, specially when managing your risk.

Tools and Technologies

I couldn’t imagine trading without platforms like TradeStation or Think or Swim. The ability to add and remove indicators at will, combined with the power of backtesting and AI-driven tools like ChatGPT, has fundamentally changed how I approach trading.

Lessons Learned

The most critical lesson: Stick to your trading rules. Risk management is not just a part of trading; it is the backbone that sustains long-term success.

Advice for New Traders

Start with foundational knowledge. Read Trading for a Living by Alexander Elder and engage tools like ChatGPT to deepen your understanding. Remember, trading is not inherently easy, nor is it suitable for everyone.

Future Goals

My immediate goal is to implement and perfect swing trading strategies to ensure steady growth. Long-term, I aim to deploy an autonomous trading bot to detect intra-day setups in real-time, allowing me to trade efficiently while attending my day job.

I hope this post gives you a glimpse into my trading philosophy and journey. Stay tuned for more insights and discussions on combining technology with trading to achieve success.