- Returned from the US on Monday, and was then back in the central London office for the remaining four days of the week.
- I continued with my testing exercises (including a solid 5 hours on the flight back from New York) – this time reviewing the charts from March’15 thru to Feb’16 identifying all valid setups. Still got a bit to go on this – next week! Am comparing these backtesting results with the testing I did in ForexTester2 over the same period. I am referring to the later as my ‘forward testing’.
- I also reviewed the month of May’16 for setups across the 30+ instruments. With a couple of trading sessions remaining, I counted 39 setups, rendering a small profit. My live trades were roughly on par with the backtesting – though somehow I managed to trade predominantly losing days, and happened to miss out on sessions on which the setups worked (I was away in Scotland and US for quite a few sessions, and thus couldn’t trade).
- In my view, the markets seem to be quietening down a lot – this is apparent from the steadily decreasing ATR (average true range) readings on all instruments. Thus on the whole, I should expect less setups to occur and for the setups to be less effective than in more dynamic and/or trending markets. Here is a slideshow of the trades I took this week. All in all, I had six trades and incurred a net loss of 0.2R.
- I also posted a fair bit on the Trade2Win forum this week – with quite a few of the posts relating to risk/money management concepts and specifically the concept of Kelly betting. I thought these posts might provide some useful reading so I have linked to the thread here. Also had some good conversations on the topic with one of the trading colleagues in the office.