27/5 – My week as a currency trader

 

 

  • 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.

 

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  • 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.
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