Showing posts from March, 2013

Review Q1 2013

Result last two weeks: -26%
Result Q1: 4%

Last week has been terrible for my trading as volatility picked up due to the things going on with Cyprus. The thing with my method is, that I tend to keep open positions for a few days or more and a lot can happen in a few days.

So in the end I seem to be able to break above break even, but only barely. This reminds me of my Trade Plan analysis. I decided to make another analysis of my equity curve.

Micro credit: not sexy, but it's got teeth

Part of the intention of writing this blog is to inspire people to take charge of their own financial future. Financial literacy is not rocket science and any one who makes you think it is, is probably trying to scam you or is indeed a financial wizard / geek. In either case I suggest not to get involved.

I strongly believe, and with me many others, but let's talk about me, that in current economic environment, ordinary hard working savers and retirees are the ultimate losers. I mean here in Europe bank savings are looking more and more "unsave" now savers at Cyprus banks have to take a 6 to 10% haircut on their supposedly secure savings to help bail out the banks and the Cyprus government. It makes you wonder what this means for savings in Greek, Italian and Spanish banks and ultimately any other bank in Europe. But this is not the biggest concern I have. The biggest concern I have, is that interest rates paid on savings are so low, that with inflation correction, savin…

Patience, Daniel-San! (review week 9 and 10 2013)

Result: 19,1%

Last two weeks have been a patience game for me trading. I basically placed all of my orders at the beginning of week nine and did nothing more than sit on my hands and watch my P&L bounce up and down. At the end of week nine I was up by 13%, but as all trades still seemed to be in play, I decided to hang on to the positions over the weekend.
One trade on the AUDUSD got stopped by just 10 pips or so, before heading in my direction again.

As you can see the price of the AUDUSD gapped down over the weekend and then went against my trade, stopped me out and turned around. Currently I am short again at a better price / higher level.
On the AUDUSD I lost 5.9%, which is more than my max risk of 5% per trade. The fact that I needed a bigger risk on this trade, should have signaled me that this wasn't a trade I should take. Again, something to keep in mind.

On last Friday I closed out 10 other positions:
2 GBPUSD for 7,5% profit
3 EURUSD for 3,8% profit
2 USDCHF for 12.3…

A simple quantified strategy enhanced

Today I came across the following post: When SPY Falls 2 Times More Than Average Change on the Quantified Strategies blog by Oddmund Grotte. As I am looking for a more quantified approach for my investing / trading, I decided to do a back test on the strategy explained in the post. The strategy is as follows:

See How I Trade

Click on my performance chart below to see how I do it!