Live Trade 79 & 84 – RESULT and ANNOUNCEMENT

Filed under: Live Trades |

I have two trade results for you today, and both have damaged our bank and led me to a decision regarding the direction of this service. I will, from now on, be implementing trailing stops on all of the trade alerts. Most of these trailing stops will be around one times our risk – meaning that when the trade moves in our favour to an amount equal to that of our risk, the trade will automatically move to breakeven and then lock in profits as the trade moves further in our favour.

 

The two trades that I am reporting on today, on the AUD/USD and USD/CAD pairs, were both losers and meant that we lost 2% of our bank. However, with a trailing stop of one times our risk, they both could have been profitable. The AUD/USD pair went to a profit of over two times our risk at one point. Similarly, the USD/CAD pair also went to over one times our risk. With a trailing stop of 1R, we would have made some profit on these trades. Instead, we find ourselves with a 2% loss.

 

Now, over the long term, I believe that the set and forget system that we have been employing so far will be profitable. However, I don’t think followers of this system will enjoy it because the equity curve will be too choppy and volatile. There will be significant periods of drawdowns both in percentage of the bank and time. Therefore, I will be moving over to using trailing stops so that the equity curve will be much smoother and more gentle, and so there are less losers and more winners (albeit, the winners will generally be smaller). I think that followers of these trades will get much more enjoyment out of the process. So this is the direction we will be going in. Here are the official results.

 

Trade 79 = -100

Trade 84 = -96.82

 

Bank = 9,500 (-5%)

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