3-week FX trading update

Realizing it’s already been 3 weeks since my last blog post, here’s a quick update.

Trading continues, though on part-time basis, mostly based on trade setups shared in a trading room.  Have been exhibiting good trading behavior.  Results are profitable.  Doing some coding too.  That’s the executive summary.  Read on for more details.

I’ve continued to trade throughout all of the summer, though essentially just following the trade setups in the smartforexlearning trading room, with Felix, an independent Belgian trader who lives in Japan.

The trading has been profitable, though I’ve only done 40-45 trades over 3+ months.   I do miss some of the setups due to the timing of when a setup may occur, such as in the Asian session (which is of course the middle of the night for me), and also sometimes because ‘life’ gets in the way of being sat in front of the trading screens at the right time.  I’ve accepted that I am not going to be trading all of the setups that he points out, and that’s fine with me.

Being in the trading room has re-emphasized (to myself) some of my slowly-developed good trading attributes – being disciplined, sticking to plans and rules, exercising good risk management, determining appropriate position sizing, documenting trades and results in detail, and finally building processes around the trading strategy that help me to trade well/properly, as professionally as possible.

In addition, I am also writing some code to help me identify the type of setups that Felix looks for.  There’s a big raft of permutations to look at, as Felix looks at a good 40 instruments and considers a decent number of timeframes (1H, 2H. 4H, 6H, 8H, 12H and D).  I figure writing code will help me shortlist potential setups which I can then ask his opinion on, and through this process understand and learn his reversals strategy better.

Naturally, the coding is a lot of fun.

The results for trading in his room have also been quite encouraging – personally I consider these great results, particularly if I could retain these win rates and RR ratios over the long-term.  Note, my own results trading Felix setups are significantly lower than what Felix has been achieving over that time.  Here’s a equity curve of the trades I have taken thus far – pointing out there’s barely 40 trades in the sample:

Felix Equity Curve

  • 24 winners, 22 losers => 52% Win Rate
  • Avg Winner  0.76, Avg Loser -0.6 => 1.27 Reward to Risk Ratio

 

The actual trading does not take a lot of time.  Development, research and testing takes up more time than doing the trading itself.  70 to 80% of my working time has still been taken up by another project, so the trading is just running in parallel.

Expert Advisor to help with trade automation

Felix has also developed an MT4-based Expert Advisor [EA] to help his subscribers catch as many of the setups as possible – though it still requires the trader to choose the desired stop loss level, which might be difficult to know ahead of time.  I think Felix makes a great point that the EA is not to meant to take over the trading decisions completely, but should be there as a tool to assist the trader.  Personally, I have not used the EA but generally the feedback from the members that do use it, is very good.

 

That’s all for today’s post.  I will try to be a bit more active with tweets and blog posts in the coming weeks.

 

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