Diskusija

Dear Investors, friends, and family,

 
First off I would like to say Happy News Years and I hope everyone enjoyed their Holiday, even though it was two months ago. I want to thank the people that have been supportive through the good and bad times. Your support and positive comments really mean a lot to me and I want to give something back to all of you in the near future. I apologize for my absence from answering emails, but I have not been as resilient after occurring these losses. I have decided that focusing on trading is my 1st priority and everything else comes after. However, a thorough response is needed to explain my current situation.
 
Secondly, I would like to cover what took place a few nights back, since it is fresh and my emotions are still fired up. I would like to share my comments and analysis before the LONDON open, so you can see what I was thinking. For the traders, you have requested this information. For the investors, that do not trade themselves, you can skip over the trading details.
 
Post #1 - https://www.forexfactory.com/showpost.php?p=4386174&postcount=8642
EURUSD and AUDUSD (EU+AU) both were at resistance at the end of the US session and the Asian session confirmed that the next move would be lower. My comment was to help another trader that just entered long (BUY) on both EURUSD and AUDUSD. Also at this time, I just closed my EURUSD short for 18 pips.
02.09.11 21:59
02.10.11 01:41
EURUSD
Sell
1.37321
0.00000
1.37321
1.37134
18.7
3h 42m
0.98%

 
This short position was taken after the Close of the US Session. The market moves very slow at this time and that is the reason for the 3h 42 min duration.
 
Post #2 - https://www.forexfactory.com/showpost.php?p=4386453&postcount=8668
This post was made 1 hour before the European session opened up. There were no significant economic news. and EURUSD seamed as if we would see a small upward movement before continuing downward. However, I knew that the larger move would push EURUSD below 1.3600 in the London session.
 
Post #3 - https://www.forexfactory.com/showpost.php?p=4386493&postcount=8673
This is 10 minutes before the European opened and 1.3680 was a temporary support level. If broken, the momentum would push lower to 1.3600 as I planned.
 
Post #4 - https://www.forexfactory.com/showpost.php?p=4386526&postcount=8674
European Session has opened and I was looking for a small Scalp off this temporary support level. In fact, I was at a small profit but I started to make mistakes from this point on. I did not follow my analysis and actually I started to trade against my own analysis. This is the first trade that began my pitfall. My Stoploss was in place just below 1.3680 as mentioned from previous posts that if this level broke, we would see EURUSD move lower. And, this is exactly what happened.
 
First mental mistake - I removed the stoploss on this trade, after I have finished my analysis.
Second mental mistake - I added multiple positions against my analysis in hopes of regaining the loss from the first position.
Third mental mistake - I had an opportunity to close out these BUY positions at a 10% loss after LONDON opened, but greed forced me to hold these positions into the US Session.
Fourth mental mistake - I have traded for almost 20 hours non-stop and after 16 hours of trading, our human body cannot make logical decisions. I did not plan to engage any trades in the LONDON session or after the first BUY position from post #4 and that time, I have already traded for 14 hours. My goal of 40 pips was already made for that day. I should have allowed the first Buy position hit the planned Stoploss and traded another day. My emergency Stoploss was placed at 1.3578 and EURUSD went to 1.3576 hitting my stoploss before reversing at the London close. Picture is attached.
 
Prevention:
A 30% Equity protection Stopout was suppose to be implemented 2 days before the Loss on January 13th, unfortunately SmartTradeFX technical support can only make adjustments in the European-London session and if all positions are closed. Because I trade at these times, they were unable to add the requested Equity Protection. A 30% stopout was added the following week - This is the reason why I did not trade for an entire week, for those who asked why I was not trading. The 30% equity protection is not adjusted after each trading session or at the end of each week, and it was not adjusted at the end of the January. I was told that the Equity Protection is adjusted monthly however, there were no adjustments made to reflect the new gains after Jan13th.
 
I added this Equity Protection to my account; therefore each investor would be protected without the need to have a stopout level on their personal accounts. Also, this was a safe guard from any technical issues that I may have on my end. Unfortunately, once again, timing could have not been any worse. Let me explain what took place on Jan13th, 2011.
 
January 13th, 2011
01.13.11 13:10
01.13.11 13:16
EURUSD
Buy
1.31648
0.00000
1.31638
1.31648
1.0
6m
0.66%
Since I was suppose to have a 30% equity protection on my account, I built (Expert Advisor) a tool that would monitor equity drawdown and hedge (100% offset of current open positions) when the drawdown was at 25%. This tool/idea is to stop me from trading once I have exceeded my drawdown limit to prevent hitting the equity protection. Also, I feel that if I am beyond 20% drawdown, I need to take a break from trading and I can begin trading the following day from where I have left off at full strength. Trading while being tired has already proved to me that I cannot make the normal decisions that allow me to profit consistently day after day. This risk management Expert Advisor placed the Hedge properly at a 25% drawdown and I was finished trading for the night (Once again, this was a very long trading day for me: 12+hours). What I was not aware of is that I had my OrderCloser Expert advisor ( This expert advisor automatically adjusts my Stoploss accordingly once the trade is at a profit or at a drawdown - It can be considered as a Trailing Stop function) still operating on another chart and this Expert advisor adjusted the hedge/offset stoploss to Breakeven +1 pip ultimately ruining the purpose of the hedge in the first place. An emergency stoploss automatically entered before a margin call that night.
 
Recovery:
Master Account is currently down around 80% from the opening of this PAMM on November 6th, 2010. I've regained a significant amount from the losses that I have occurred in the past to only experience another huge loss the following month. I can regain from this current situation over time and I am currently building an expert advisor that will prevent any further losses, by 1.) All open positions will be closed at a 4% drawdown automatically 2.) Limit amount of open positions 3.) An automatic timeout preventing over trading. With these functions in place, I will only be able to scalp within a certain trading window, only a certain amount of positions can be opened, and an automatic stopout and timeout will prevent me from making the bad decisions that took place a few days ago. I can only learn from these mistakes and prevent these situations from reoccurring.
 
Investors:
You have to right to revoke the Limited Power of Attorney at any time. I will not be offended and I will understand completely. I deeply apologize for the loss of our funds and I am ashamed to offer an investment that could not meet our expectations.
 
Game Plan:
 
Trading will resume once I have thoroughly tested a new risk management Expert advisor that will ultimately prevent excessive drawdown and engage the disciplinary action needed to succeed as a Forex Day Trader. Hedging will no longer be needed or used. Scalping will still be the primary strategy until a significant recovery has been made. Once, we are at our original investment amount I will consider longer term trades. I intend to only trade for a 2-3 hours 4 days a week. I will trade near the opening of the London session. My daily goal will be 20-40 pips if possible, but not necessary. I will follow the trading plan originated from the GoMarkets account - https://www.myfxbook.com/members/pipinvestment1/gomarkets-end/48382