I bought/rented Blahtech SD but I am still not profitable. What am I missing?
There are many components that can affect the outcome of trading:
- Inconsistency in position sizes
- Inconsistency in stoploss sizes
- Insufficient risk/reward
- Too ambitious risk/reward
- Trading at the wrong times of day (when your chosen instrument isn't normally active)
- Inconsistency in number of trades per day/week (ie if you do one trade per day but then go crazy on another and trade 7 or even 20 times, this will also cause a massive problem for the system consistency, ultimately resulting in poor performance numbers)
- Keeping swing trades for too long
- Mixing up intraday setups with swing setups
- Not using Multitimeframe analysis (only looking at one small-ish timeframe having no clue where the price is in regards to larger timeframes
- Constantly trading against the trend
- Trading too many instruments - we recommend limiting your chosen instruments to MAXIMUM three for the first couple of years of trading. Start with one, learn that instrument's ins and outs. Then once you've had success and profitability with that one instrument, add another. Yes it's boring if it doesn't move on some days and yes it's a long process, but it's THE ONLY wayto achieve consistency that can be tracked easily. You'll be able to pinpoint your weaknesses much clearly, which will then help you to get rid of them, one by one. And this part is THE holy grail of any system - dealing with YOURSELF.
Simply having a Blahtech indicator does not mean that all your particular weaknesses will magically go away.
You still have to journal and run a detailed track record of everything:
Time of day you executed a trade
Number of trades per day AND per week
Outcome of the trade
Even if the trade was a loss - was it ever in profit? And by how much in risk/reward terms? 2x? 1x? 4x?
If it was in profit and you chose to leave it on - that's something you have to work on, it means your price action reading skills are not quite there, or you are NOT being OBJECTIVE about your trade.
ALWAYS read the chart, don't trade your BIAS when in a trade - this skill can take years to properly develop, for most people.
Is Blahtech Daily Range really necessary for Level 3?
Average Daily Range is absolutely necessary, both in swing, but particularly intraday. If you're trading swing, then all you need is the ADR exhaustion point for the day. You can use any indicator for this purpose. However if you wish to trade intraday or to increase your accuracy as well as to minimise stops for your swings, then Blahtech DR feature of individual session ranges is a must for Level 3 students. Otherwise it will take you a better part of the day to calculate the median session range over the last 20 days across 3 sessions manually. But, it's entirely your choice. You might enjoy doing the math.
I bought/rented Blahtech DR, but I can only see one dot on the chart?
This issue could be one of two things:
1. You're either on a large timeframe chart (H4 and higher). Change the timeframe to H1 and below. Blahtech DR is an intraday tool that helps you to find exhaustion prices (median average) for that particular day. It's not meant to be read on the Daily chart.
2. Or it's just gone midnight and there's not enough candles yet to display a line, because the day just turned. Wait for the day to start developing.