This journal will document whats its like to be on the other side of an inexperienced retail trader's trades.
The trading style employed will be basically the same as most retail brokerage firms. When you execute an order with one of these firms, your order does not always go to the market. You order can be routed to their books so that when you win, they lose, and when you lose, they win... losing is what inexperienced retail traders are best at.
So for this journal, I will be employing the help of one of my relatives to trade the market. This relative has a total of 4 hours trading experience and has been introduced to technical analysis. He is familiar with different technical patterns, basic market psychology and risk management. He is not familiar with expertise development and has no idea what a objective edge is.
He will be trading EUR/USD futures on a demo platform. Each time he buys or sells, an exact and opposite order will be sent to one of these retail fx brokerage firms using real capital... Im sending these real orders to a OTC FX firm because it allows for small trade sizes. My relative could make a lot of money before eventually losing it all so I need to make my trade sizes are small enough so that my capital can stretch further then he could possibly make.
To help make sure he sees stuff that isn't there, I will be providing him with various technical analysis tools like MACD, MA's, RSI etc etc (I will post a pic of the setup soon).
He will be trading on a 5 min timeframe so that brokerage costs for me are down, while still producing a large amount of trades ideas per day so that he doesnt get too bored. He will be trading the EURUSD at night when spreads are closest and volatility is at its largest so that brokerage costs for me are small relative to movements in the market.