Am back at the Old Street office trading today. It should be a fairly quiet day – without any scheduled Tier1 news. I reviewed the charts for the past 3 trading sessions that i missed, as well as all of the news headlines on the squawk. The main events has been the divergence regarding interest rates with Fed Chair Yellen [USD] becoming more hawkish and ECB Head Draghi becoming more dovish, during the talks at the Jacksonhole summit at the end of last week. Thus there has been further EUR weakness as well as USD strength.
Reviewing the charts this morning, two valid setups occurred on the SPX (S&P 500 equities index) [long] as well as EURGBP [short]. For now I am only filled on 1/2 the desired position on the latter, but am filled for all of my position on the former.
I have increased the monetary value of one unit of risk (1R) to £50, following last week’s profitable trading week.
To summarise last week’s trading activity, a total of 18 trades over 4 trading sessions – 5W (winners), 8L (losers), 5BE (break-evens) – net gain of 1.77R. Average reward-risk ratio of 2.22. The statistics change somewhat if I classify the results by strategy. EMA-based trades had 4W, 3L, 5BE for a gain of 3.74R, whilst the ‘post-news’ strategy came in at 5L, 1W for a loss of 1.97R.
Out of those 18 trades, two were not valid setups. Once I had realised that, I closed the trades immediately. These two trades showed a combined loss of 0.39R.
So, all in all, it was a good trading week. I showed a lot of discipline in my trading – leading to fewer trades, better profitability and less stress. I did seem to wear myself out by working long hours and was shattered come Thursday evening. The issue most difficult to tackle last week was the management of the open positions.