‘Trust is like a paycheck – it must be earned.’’
Sir or Madam:
Attached are the results of my strategy. The results on the demo account and live accounts are similar.
Trade Not Taken:
EURGBP was not traded as my conditions weren’t all met.
AUDUSD Buy: -$162.12
NZDUSD Buy: -$162.33
GBPUSD Sell: -$147.20
EURUSD Sell: $468.80 (62-pip trailing stop applied, and later adjusted to 72 pips)
EURAUD Sell: $120.53 (60-pip trailing stop hit)
EURJPY Sell: $182.43 (60-pip trailing stop hit)
EURNZD Sell: $316.78 (82-pip trailing stop applied)
USDJPY Sell: $184.95 (60-pip trailing stop applied)
USDCAD Buy: -$43.85
You can now see how one can survive a losing streak with low risk position sizes. The trades on AUDUSD and NZDUSD were placed prior to the tweaking of my strategy to ensure a better risk management technique. I’m also trying out occasional counter-trend alternatives on a separate demo account to see whether it would ever make sense to incorporate that approach with trend-following runs on my strategy. It’ll however, be 7 weeks from now to do that. For now, I need to enjoy my present strategic rules.
All budding traders are under the illusion that they are well prepared and know the right things about the markets (I was dwelling in a fool’s paradise some years ago). You shouldn’t forget the Golden Rule. Please bear it in mind that markets are like natural phenomena – they don’t care who/what you are. Even if you have to match weak currencies with strong ones, you might want to do that when the risk is lower. Trade what you see. And by applying good risk management, you shouldn’t fear the unknown. Markets will take care of themselves.
Let me conclude this report with a quote by Thomas Wacker:
‘Trading success is hard work – especially hard personal work. Trading claims your undivided attention, draws on all your strengths and at all times requires total dedication on your part. That is why a trader can be compared to a highly competitive athlete who can only enjoy continued success if he keeps developing.”
Your questions and opinions are highly welcome.
Forex Signals Strategist, Funds Manager &Coach
NB: There is risk of loss in trading, but it is possible to be a successful trader.
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