Hello everyone,
This journal is about how I trade. It is not meant as a teaching thread or a signal generator. This is merely a way for me to keep myself honest and make sure that I adhere to the rules that I have set out for myself.
I trade a portfolio of 5 currencies on the 4 hr chart. I am always in, meaning that on a stopped out position, I will reverse to the opposite side.
I have attempted to keep a basket of non correlated pairs that do not move alike....I have tried to keep the correlations under 80 and ideally under 60.
EURCAD EURJPY GBPJPY GBPNZD USDJPY
EURCAD 100 57.3 -62 -49.3 -68.9
EURJPY 57.3 100 -25.8 -27.4 -17
GBPJPY -62 -25.8 100 31.9 61.4
GBPNZD -49.3 -27.4 31.9 100 69.6
USDJPY -68.9 -17 61.4 69.6 100
As you can see from the weekly correlation chart above, we have a mix of pairs that that are not highly correlated and should produce the desired results from the system itself and not be market dependent for one way moves.
The system itself, based on the nature of trend following methodologies, does not have a high win rate. It has historically produced about 48% winners.
Where the system makes it's money is in the Win / Loss ratio. the system historically produces about 3.75 to 1 win to loss.
This is a method that requires patience. the average trade length right now is about 4.5 days. It very much requires discipline to simply sit and wait.
This methodology also has large and sometimes very large stops / reverse points....meaning 100+ pips.
On the flip side, this method has in the last 90 days produced several winners that are several hundred pips....and a couple over 400 pips. This is where we get paid, if we will simply watch and wait.
I will be posting charts as I go along.
For those who are curious please feel free to watch along as this journey continues.
The current portfolio positions as of this morning are:
EUR/JPY: LONG from 137.01
GBP/JPY: LONG from 173.67
USD/JPY : LONG from 107.98 (stopped and reversed this morning)
GBP/NZD: SHORT from 2.0397
EUR/CAD : LONG from 1.4251
Many Pips !
This journal is about how I trade. It is not meant as a teaching thread or a signal generator. This is merely a way for me to keep myself honest and make sure that I adhere to the rules that I have set out for myself.
I trade a portfolio of 5 currencies on the 4 hr chart. I am always in, meaning that on a stopped out position, I will reverse to the opposite side.
I have attempted to keep a basket of non correlated pairs that do not move alike....I have tried to keep the correlations under 80 and ideally under 60.
EURCAD EURJPY GBPJPY GBPNZD USDJPY
EURCAD 100 57.3 -62 -49.3 -68.9
EURJPY 57.3 100 -25.8 -27.4 -17
GBPJPY -62 -25.8 100 31.9 61.4
GBPNZD -49.3 -27.4 31.9 100 69.6
USDJPY -68.9 -17 61.4 69.6 100
As you can see from the weekly correlation chart above, we have a mix of pairs that that are not highly correlated and should produce the desired results from the system itself and not be market dependent for one way moves.
The system itself, based on the nature of trend following methodologies, does not have a high win rate. It has historically produced about 48% winners.
Where the system makes it's money is in the Win / Loss ratio. the system historically produces about 3.75 to 1 win to loss.
This is a method that requires patience. the average trade length right now is about 4.5 days. It very much requires discipline to simply sit and wait.
This methodology also has large and sometimes very large stops / reverse points....meaning 100+ pips.
On the flip side, this method has in the last 90 days produced several winners that are several hundred pips....and a couple over 400 pips. This is where we get paid, if we will simply watch and wait.
I will be posting charts as I go along.
For those who are curious please feel free to watch along as this journey continues.
The current portfolio positions as of this morning are:
EUR/JPY: LONG from 137.01
GBP/JPY: LONG from 173.67
USD/JPY : LONG from 107.98 (stopped and reversed this morning)
GBP/NZD: SHORT from 2.0397
EUR/CAD : LONG from 1.4251
Many Pips !
Plan, Prepare, Execute, Repeat