Newsflash: +10R trading week

Never thought I would be able to use such a heading.

An exceptional week in terms of results.  With 4 trades (out of the 22 I took) still open, it does indeed look as if the net profit for the week is going be a bit above 10 units of risk.   Quickly going over what I did this week, and what might have helped me get this results.

coin tossIt’s important to keep a weekly result like this in perspective.  I took 22 trades.  If I am expecting a win rate of 50% (i.e. tossing a coin) then it’s quite possible to have a significant variance in one direction over a sample size of 22 trades (or coin tosses).  So randomness may well have its finger in the play here.  Likewise, a couple of trades could have easily just been stopped out instead of kept open and a target could have just been missed.  One also has to consider the randomness involved here.

[Edit: In the end, it was +13R profit.  Several more targets were hit after the blog post was published.]

 

All that said, here are factors that would help towards trading well and achieving profitable results:

  • The trading was very rigid and all in compliance with well laid-out trading strategies.  In fact, there simple wasn’t enough time to do anything else.
  • I continued relying heavily on the code I have written in TradeStation to help me pin-point setups, and then manually cross-checking code-based signals against my MT4 charts.
  • New code written this week automated the setup-scanning to a large degree.  Suddenly, I could also apply the setup methodology to the 1-hour timeframe across the 40 markets that I trade.  I didn’t actually take many trades below the 4-hour timeframe (only 4 out of 17) but the functionality is now there if I want to do that.  It’s more accurate, it’s efficient and it’s going to save me a lot of time, whilst allowing me to get into more trades.
  • The EasyLanguage code has already helped me take 2-3 trades this week that I most likely would have missed otherwise.  I discussed one of these in detail here.
  • Stuck with some simple (un-tested) trade management rules – stops below recent swing points, calculating targets on basis of a simple stop-multiple, not moving stops until either target or stop is hit.
  • Managed not to interfere with any of the other trades once they were open, except for making a couple of judgement calls prior to news announcements.
  • Took full advantage of what the code was giving me and then made judgement as to whether or not to take the setup – most of the times I did.  Most exceptions were when the setups occurred very close to scheduled news announcements.
  • Basically developed some sort of routine for doing my trading, alongside some other non-trading work which I am currently involved with.  This is also important as I basically didn’t trade at all from January through to the end of April.
  • Made some good position sizing and risk management decisions with regard to trading strategy, timeframe, trade correlations and trades open simultaneously.
  • Paid attention to discussions in the smartforexlearning trading room I joined 2-3 weeks ago.  Here most of the trades are based on reversals, and it’s great to look at my charts and my trend-following setups from the opposite/devil’s advocate perspective.  This was quite helpful.
  • A lot of the rigidness and discipline was driven by the fact that I am splitting my working time 50/50 between trading and something else, so I have got to make things as efficient as possible.
  • The trades were across several FX pairs – with some pairs getting more than 1 trade such as EURCHF, USDCHF, EURAUD and USDJPY.  The only non-FX trade this week was on Gold – which I ironically hit 3 times. 

For next week, I plan to do the same in terms of monitoring for setups, taking trades and using the trade management rules.  Roll on the weekend!

 

This entry was posted in Financial Markets 101, Trend-Following Strategy. Bookmark the permalink.

4 Responses to Newsflash: +10R trading week

  1. Felix says:

    Those are stellar results, George! Absolutely thrilled to read this and very happy for you. Now keep it up 🙂

    Liked by 1 person

  2. Ruben says:

    Great post George, was inspired by the way you split your trading and other work.

    Liked by 1 person

  3. Pingback: Weekly Wrap: Trading for less than 45 minutes/day | Trick or Trade

  4. Pingback: Trading Strategy Performance Review | Trick or Trade

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