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Showing posts from June, 2012

Review week 25 and looking ahead at week 26

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Review week 25
Result: -3,5R in 4 closed positions and one open position with a stop at +1R. So net -2,5R in 5 positions.

All losses occurred during the beginning of the NY session on Thursday as there was a huge sell off on Wall street and everyone scrambled for parachutes and turned to the USD. It's a good thing I had stops in place to bail me out. However looking back I did make mistakes entering trades. I've been coming down with the flu last week, which is actually something very unusual for me. And apparently it influenced my trading.

In the beginning of the week I just missed this trade on the SPX500 by 0,1 point.
Truly sad, because I needed the 2R to make up for the -1R that hit me on Thursday. Price was above the MA's. The 21 SMA was sloping up. See below chart: There was an inside bar, but I entered it as a pin bar. Big mistake. In my trade journal I wrote down there was a pin bar, but the way I see it now is that the top wig is way to big.
Than there was a pin bar…

Review week 24 and looking ahead at week 25

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Last two weeks have shown mainly choppy side ways markets. Not an optimal environment to trade my method. I should have stayed out of the markets all together, but I was so confident and so eager to trade after the huge gains in May, that I entered some trades, that at that time looked OK. In reality I was still being blind, not noticing signals the market was giving me.

Review week 24So let's review the trades I made. From now on I will review my trades in the perspective of  capital gained versus capital risked. If you are not familiar with this concept, I suggest you read this post. If you want to read about it more in depth you can go to the books section and check out the book "Trade your way to financial freedom". In short: 1R is the Risk I take per trade. (In most cases) I risk 2% of my total equity. This means that last month's return was 18,5R or 1 made I8 and a half times of what I risked per trade. So far the return in June has been -4R.

I shorted the GBPUSD…

Review week 23 and looking ahead at week 24

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For the last few weeks pairs have been trending strongly, which gave a lot of clear opportunities to trade my tradingplan. This week it seemed that all trends came to a stop. Many pair are pausing, retracing or maybe even changing the direction of the trend. The means I needed and still need to be patient and wait for trends to continue or change.

Conflicting signalsOn Tuesday I saw below signal, which I totally miss interpreted looking back. I thought I saw a pin bar, like I have been trading successfully last few weeks. So I placed a limit sell order and got stopped out in about an hour after entry.
So what happened here? Well, me doing so well last weeks basically blinded me for the conflicting price action signals I was getting. First off, the candles of the Thursday and the Friday before were complete opposing pinbars indicating indecision. And  second, the pinbar I traded was not a proper pinbar as the lower wick was to big, which indicated that the buyers came back in pushing pri…

Review week 22 and looking ahead at week 23

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Nonfarm payroll and US unemployment ratesI should have exited two open trades on the EURUSD and USDCHF before the nonfarm payroll and US unemployment rates came out on Friday. Also I should not have placed new entry orders that Thursday before. Why didn't I? Well, I simply forgot and did not check the calendar, that I prepare every week. So I need to make it a habit of always checking the economic calendar every trading day.
For both trades I had my stop at break even. Luckily these stops were not hit. I then managed to get out still with a decent profit at the rebound of the price spike caused by the news event.

Saved by the boundI had a sell order placed on Gold based on a pin-bar setup. As price spiked up due to outcome of the news event my order was cancelled as it could not be filled within the set bounds. This is exactly why I set bounds, because had my order been filled it would almost immediately be stop at a loss. It would have been better still if I had not placed the o…

Summary of May 2012

Here is a summary of my trading performance of last month. I intent to write a summary every month in order to gain some insight in what is going well and what needs improvement. In other words: I intend to find out what aspects of my trading needs focus the coming month(s).

Account summary May 2012

Opening balance100,00%Opening NAV100,00%Realized profit37,60%Realized loss-9,34%Net realized28,26%Balance interest0,05%Position interest-0,31%Closing balance128,00%Closing unrealized p/l5,12%Closing NAV133,12%

Balance 1st of June 2012131,36%

I made 37% profits and about 9% losses compared to my opening balance. I was left with some open trades on friday the 1st of june, that I was able to close out at a 3% gain. So if I include last Friday I netted 31%. 20% of this I made in one week only. The other weeks I made between 3 and 5 % a week.

Trades summary May 2012

tradeslossprofitnetnet per tradeEURGBP7-2,64%4,74%2,10%0,30%EURJPY60,00%13,81%13,81%2,30%Brent Oil40,00%7,69%7,69%1,92%EURUSD30,00%3,4…