On July 16 at 10:00, Jasmine’s subsystem 1 entered a EURUSD sell trade at 1.29406 with a stop loss of 80 pips and a take profit of 260 pips. The previous ten days high of the EURUSD is 1.3006. Within the same day at 19:00, subsystems 3 and 4 also entered their sell trade at 1.29153 and 1.29168 respectively. Subsystem 3 uses a stop loss of 100 pips and a take profit of 240 pips while the subsystem 4 uses a stop loss of 100 pips and a take profit of 220 pips. Since May 21, 2010 to July 16, 2010, Jasmine has gained a total of 3,000 pips in less than 2 months. If you are trading this system live, you should expect a drawdown soon. It is unlikely that Jasmine will continue its rampage forever. It is always best to enter a system when it is going through a period of drawdown not when it is winning.
True experience: when I first started forex trading, I used to think that I am cursed. Every wining system that was doing well, I would cause it to fail whenever I became a subscriber. After developing automated trading system for the past 5 years, it makes sense now. When a system is winning, everyone would jump on board and the words would get around. By the time that I heard about a winning system and subscribed to it, its wining streak was over, and I was left holding the bag. All trading systems will go through a period of drawdown regardless of its algorithm. The law of nature dictates that risk and reward go hand-in-hand; hence, it is impossible harvesting all the rewards without the risk.
Entering a trading system when it is losing is rather counterintuitive. If you don’t believe me, give it another two months as you continue to follow Jasmine.
Click on the attachment below to see the screen capture of the trades.