Live Trades – System Review and Updates

Filed under: Learn Forex Trading |

 

After 135 live trades (many of which were cancelled), our trading bank currently stands at 9,819 GBP (-1.81%) for around six months of trading. While this is disappointing, I do feel that we are now moving in the right direction.

 

After a good start to the trial and a 6% rise on the bank last December, we then experienced an awful drawdown, culminating in us being around -8% down on our starting bank, which represents a massive 16% drawdown from peak to trough. I felt at this stage that this drawdown was a little large, so I changed things around a bit and started doing trailing stops to try and add a little insurance. However, this coincided with a really good run of results; and the fact that we had trailing stops really did not do us any favours as the little profit we made in this period would otherwise have been a significant profit.

 

I also analyzed the 25 forex currency pairs that we had been trading, and came up with a hypothesis that we might be better only trading the most liquid pairs. I made a list of the 11 most liquid of these pairs, and looked at the results we would have got if we had only been trading these pairs. The results were highly significant. If I had only been trading these 11 most liquid pairs on my live account over the past year, I would have made a 52% rise on my bank!

 

I started using only these 11 pair for the live trades beginning in July, and we are already up 5% this month. I am also using a risk-reward scenario of 1:2 for every one of our live trades now. This will increasing our winning percentage, and this will also be much easier for everyone to handle. All in all, I am now happy that we are moving in the right direction with the live trades. Here’s hoping for a good second half to the year and I will report back on the 31st December with another review!

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