Today, among other things, I added a new analysis chart to the dashboard of Trade on Track. It’s called a Periodicity Analysis and it’s actually very simple, but extremely powerful too. At a glance, you can see which chart periods (time compressions) you do better at with your trading, and which ones you should avoid or work on improving in future.
This is just some sample data shown – but let’s just pretend it’s real for now. This chart is built using two different accounts, one could be your live trading account, the other could be a play account. And, the chart is built using 6 weeks worth of trading data.
At a glance, we can see that I might be using a range of trading systems, working off a range of chart periods. However, I do much better on the 1 Hour and 4 Hour charts than all the others. This could be extremely enlightening to me as I might have been under the impression that the chart periods (time compressions) were working equally well, when in fact that couldn’t be further from the truth!
So, using this graph – I could make a quick decision to focus only on the 1 Hr and 4 Hr charts in my future trading … imaging how much better my bottom line would be if I made just that one change to my trading strategy. Or, I could work on improving my trading in the other time frames using the Play account, to try to get them up to the same level as the 1 and 4 hour trades before wasting any more real money on them.
There are a bunch of other great charts and analysis tools in the Trade on Track system – all of them designed to help you get on track or stay on track with your forex trading.
Good luck and trade seriously!
One of the important features built into the Trade on Track system is a trading journal.
“So what?” you say? Well, it actually happens that this is a very rare feature in any trading software or trading tool – at least, to the degree that it’s implemented within the Trade on Track system.
There has been plenty written about the need for a trading journal, so I won’t repeat the text here, but I’ve included a couple of links at least :
Keeping a journal is a big step toward success in the forex trading business, don’t skip it!!!
3 reasons why it is necessary? Read on …
- It forces you (in a self-checking kind of way) to adhere to your trading plan and your trading systems. You don’t like lying, even to yourself, so if you have a routine in place where you record the details of every trade, why you took it, what mistakes you made, what successes you had – then it’s a self-enforcing way of keeping your trading on track.
- You can go back and analyze your trading journal at a later date. Yep, it’s easy to see bad trades in hindsight, but actually going back and reading WHY you took a particular trade can help in determining if it was a you problem (IE. you took the trade when you shouldn’t have), or just a trading inconsistency. Reviewing your trades, both the good ones and bad ones, and learning from what you did right and wrong, can make a phenomenal difference to your trading style and performance in future. Trade on Track goes a lot further than just letting you look at your journal entries, it provides statistics, charts, comparisons and summaries of your trading history to help you learn and move forward in leaps and bounds.
- A trading journal helps you to identify and refine the trading strategies that are winners, and to help avoid the strategies (or lack of them) which cause you losses. Once again, by reviewing and analyzing your trading style and trading history on a regular basis, you can see what works and what doesn’t. You may be surprised at what you dig up!
Keeping a trading journal while trading the forex can be a real pain. But, as it’s a critical component in the professional trader’s arsenal – we found a way to make keeping a journal a simple process and we’ve built it into the Trade on Track software tool. Be sure to check it out! www.tradeontrack.com
Good luck and trade seriously!