After reading thru your Habits update a few times, I was thinking of a possible addition to the sheets for my own records. What do ya think?………….A “How the market responds to news sheet”. I know you do this to a certain extent already with the recording the news impact releases, but more specifically, say you have 2 columns on a sheet….one column would be for an immediate impact (like on the 1M) and the other column for over the course of the day…based on TWO things….economic data and overall risk on/off. So for instance if we continuously see GBP holding up well on risk off days, or holding up well despite poor or missed economic data expectations, then that could be setting up for a possible long GBP soon. Something like that.
If you want to add your own additional sheet of how the market responds to news, then go ahead!
Try it out for a week or two. That is what I usually do when I try a modification.
When I updated the order of the habits, I try it out for a week or two, or longer.
When I added in new habits or removed old habits, etc, I always try to test it out for a period of time. It is the only way I can know if it fits my personality and is workable or not.
How long should you test for? This is a tricky question because while you want to give the new habit or modification enough time to see if it works and see if it brings forth new ideas, you also don’t want it to harm your previous trading rhythm. Sometimes I had to try out a habit or modification for longer than a month or longer before I finally “got it.” And there can be a pain process and adjustment period as you try to understand your new habit or modification and how it works into your overall trading plan and philosophy and you get used to the new information flow. The process can test your mettle sometimes as you are constantly asking yourself, is there potential here? Or am I going down a road to nowhere?
Personally, I just include that info in my currency files, and my correlation sheet notes, etc. I feel that is enough for me.
However, I can see how you can potentially obtain an advantage if you have your own separate sheet.
For example, for today, Tuesday, June 11, 2013, you could see that the GBP/USD sold off like 10-15 pips on the lower UK data, but then bounced higher and closed near the highs of the day. So for the news impact, it would just be -10-15 pips over a few min, then NS. Then you can see that it rose over the rest of the day on a risk off day. So that can setup a potential long trade.