Skip to main content

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.

Trade equity curve Forex Samurai Q1 2013

Low: -15%
High: +40%
Result: 4%
Sharpe: 0.52

I already mentioned that one of my trading goals for 2013 is to quantify my trading efforts. And this also goes for trading Forex. As part of my Forex trading I also trade the S&P500 and I did a simple quantified analysis for a mean reversion strategy. Then I figured why not do something similar on the biggest currency pair out there: the EURUSD. And so I did.

Mean reversion strategy on EURRUSD 2009 - 2012 Long and Short

As I was working on this I received an email from a nice gentlemen who read my post about the SPY and was wondering if I knew of something similar for the EURUSD that he likes to trade. So I looked a little closer and did a back test just for the past year 2012 as more recent data generally has more bearing on current and future data. And for 2012 the sharpe could have been even better trading this strategy as compared to the optimization for 2009 - 2012.

EURUSD Reversion to the mean strategy 2012

So as I felt the strategy seems valid enough I sent the gentlemen a copy of my back tests. I still do these by spreadsheet, although I intend to start doing this programmatic in Python. Also read: Algo Trading with Python.

I realized that my sheet is not at all self explanatory, so I expected and received some follow up questions about the inner workings / details. I promised to post more info about this strategy, but I will not go over the strategy and how my spreadsheet analysis is done in this post. Instead I will make and post a video about this soon. Please leave me a note / comment if you are interested in this. I am sure that if many people show interest, I am more motivated to make that video rather sooner than later :-)

Popular posts from this blog

Invest like a trader

Here is my book: "Invest like a trader". I finally decided to create this book based on my blog and experience investing, trading and coding. It is an introduction to my view on investing. For the next few days you can get a free copy on Amazon:

This book is for you if you are an investor looking to learn a more trading-like approach to investing. Buy and hold investing has become buy and pray investing, with countless sleepless nights. A more trading-like approach to investing puts you back into control of your investments and it can be a lot of fun. After reading this book you should be more able to build and grow your investment account consistently.

Link to the e-book:
Let me know what you think after reading the book. You can contact me via email or on social media. Even better, you can leave a review on Amazon.

Why I am a trader and investor and why you might wanna be one too

I am a coder by day and trader by night! Coding is my day job. I am fully aware that only having a job will not allow me to provide for my family and myself consistently in the long run. This is because most of the western societies are setup in a way to be more and more disadvantageous towards the working middle class. I do not need to be a billionaire to be happy, but our society is becoming more and more binary. It seems that one can either be rich or poor, in which case I opt to be rich, or at least hedge myself against being poor. Trading and investing are my hedge against this trend.

The super rich and us Below are two videos from the BBC documentary "The Super Rich and Us". It clearly illustrates and explains the polarization of wealth distribution in our current society. Here is a catchy quote from the documentary:

There are the haves, the haves not and the haves yachts! But actually we seem to be heading for a society where there are only haves not and haves yachts

Why I buy Gold and Silver

I own crypto currencies, because I have come to the conclusion that money as we know it today is no longer sustainable. I have come to this conclusion during the crisis of 2008. At that time I had the intuition / the gut feeling something was wrong not only with our financial system, but more specifically with our money. It took a few years of researching and investigating until I figured it out. The thing is, part of me did not want to believe it was true. And for a long time I did not act upon the intuition and knowledge I had. That changed last year when I decided to put my money where my mouth is and I started to accumulate crypto currencies. Cryptos align perfectly with my expertises: coding and trading. So I went for it... And with success.

Now I want to diversify my holdings more by adding Gold and Silver to it. I buy Gold and Silver as a hedge or insurance against the undwindled money printing of all of the governments / central banks of the world. Money, or actually, currenc…