Thank you for looking at my trading system, feel free to ask me any questions about it. I have fully verified and I am waiting for approval to be an autotrade provider on myfxbook.com if they accept providers from the USA. In addition to having my system here, it is available on signalstart.com if you would like to follow it there.
I will be taking the rest of the year off and will resume trading in early January.
In any trading system there are streaks of winners and streaks of losers and I remain confident in my ability despite feeling pretty bad about how the week ended up. While the week started off great, we ended up just below where we started. I have taken a personal inventory of this week especially and the month so far and for a while I will be trading with less overall risk and size instead of being more aggressive like some trading systems have you do after a loss. This will continue until my account gets back up to it's high watermark point of just above 70% growth.
I was also thinking this week about draw downs on accounts, specifically asking myself if I would rather have a large gain and large draw down or nothing gained nor lost. I think that I would rather have nothing gained nor lost because at least the capital was managed properly, whereas if you gained a large amount and then lost it you still lost it. The only advantage - if you learn from it - of a loss is the learning that can take place and what you can do and change going forward. I love the personal growth and development that happens during losers, but they are sharp and stressful.
I have done some analysis and reflection this evening and have the following report for you.
If you would like to follow along, please go to https://www.myfxbook. com/portfolio/fxcm-usa/1795221 (remove the space) and click on 'Custom Analysis' and set it to just the month of January 2017. Here is a breakdown of the following data:
Total trades are 134
Trades won 46 (34%)
Trades Lost 88 (66%)
Average winner 45.62 pips/$17.61
Average loss -26.24/$13.98
With this information I did some math.
My winners are still greater than losers as far as pips and dollar amounts so I feel good about that, and typically my win ratio is close to 50%, but this month it's less than that. But what if I had traded less or set a hard limit per day of percentage or dollar amount?
So the biggest days that I lost money were on the 11th, 17th and 18th (11 and 18th I lost the most). So it has been a few days that caused the most damage.
These numbers may not be 100% spot on, but here we go.
From the 1st to the 10th I grown the account 8.05%
On the 11-12th I lost 9.34%, basically given back the gains for the month so far. Had I set a daily risk limit of 2% that would be 7% less (so my account would be 6%+)
On the 17-18th I lost 3%. Had I set a daily risk limit of 2% that would be 1% less (so my account would be 4%+)
On the 18-19th I lost 6.5%. Had I set a daily risk limit of 2% that would be 4.5% less (account 2%+)
While most orders 1% risk per trade, I have been getting into trades quickly after a stop loss takes me and getting in at a better overall price. But the trade continues in the direction against my trade and closes it out again for a larger overall drawdown. Had I set a daily risk limit of 2%, the account would be positive for the month and the maximum drawdown not been increased which saddens me greatly. Going forward, there will be a 2% risk limit per day.
I am following your signal in two accounts. I would lie if I would say it was not a disappointing month.
I am sitting at a quite big loss on January. I share your thoughts about the risk increase. I am sure you made it with the good of the intentions. However personally I subscribed to your signal precisely because the size of your losses. I was not expecting this increase in the risk.
I will continue with the signal, however I would recommend you stick to the 2% risk. Otherwise I would appreciate you will write in advance your plans to change the risk profile. I this way, we, investors, would be able to make our own decisions.
I am planning to subscribe your signal to two more accounts. I will wait until I get your confirmation.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.