New journal time!
My old journal started off about one trading idea, then I threw in a bunch of other stuff and it got confusing. So I want to stick with a single concept here and stay focused. Hopefully someone will stop by with a helpful comment.
I've been testing a trading system on Oanda than involves shorting all of the pairs on one subaccount, buying all of the pairs on another subaccount, and netting out the difference to see if there is a profit. I fell into this idea by accident but it seems to work.
For the past two weeks I've had two $1000 game subaccounts running, with trades on all of the pairs except the USD/exotic asian pairs and AUDNZD, EURCHF, EURGBP, GBPCHF (they range too much).
The rules are thus:
1. On Monday I placed market orders for $100 on all of the pairs.
2. On Tuesday, I close trades that $1 or more against me. I add an additional $100 trade on any pair that is $1 or more in profit.
3. On Wednesday, repeat, with the addition that if any trade is $1 or more in the whole, close all of the trades on that pair.
4. Rinse, wash, repeat.
5. Goto 1, holding open trades until they close per the rules.
Results: $2053.50 net, $271 margin used, 1.34% return per week.
Results had been as high as $2070 net, but came down a bit.
I started an additional pair of subaccounts this week, with altered rules. Trade size is $200, and another $200 limit order is place about 1/2 daily ATR away in the direction of the trade. I'm about 2% in the hole right now with $470 margin used while the trend gets established. I may have screwed this one up by closing some trades early and taking some losses though.
I think this could handle $400 trade size, although a black swan event might crash it. That would give a 5.35% return per week which is extraordinarily high and doesn't seem sustainable. (compounded weekly, that's 15x per year. compounded monthly, it's 10x.)
I might add a rule about closing correlated pairs if one or two turn against me (JPY pairs, exotics).
So am I just having a lucky day? I trade once per day, about 8am NY time. Should I expect a huge downturn? Lastly, I've not used stops yet. I've had a few trades move 150 pips or more against me during the day. Any ideas on the use of stops?
My old journal started off about one trading idea, then I threw in a bunch of other stuff and it got confusing. So I want to stick with a single concept here and stay focused. Hopefully someone will stop by with a helpful comment.
I've been testing a trading system on Oanda than involves shorting all of the pairs on one subaccount, buying all of the pairs on another subaccount, and netting out the difference to see if there is a profit. I fell into this idea by accident but it seems to work.
For the past two weeks I've had two $1000 game subaccounts running, with trades on all of the pairs except the USD/exotic asian pairs and AUDNZD, EURCHF, EURGBP, GBPCHF (they range too much).
The rules are thus:
1. On Monday I placed market orders for $100 on all of the pairs.
2. On Tuesday, I close trades that $1 or more against me. I add an additional $100 trade on any pair that is $1 or more in profit.
3. On Wednesday, repeat, with the addition that if any trade is $1 or more in the whole, close all of the trades on that pair.
4. Rinse, wash, repeat.
5. Goto 1, holding open trades until they close per the rules.
Results: $2053.50 net, $271 margin used, 1.34% return per week.
Results had been as high as $2070 net, but came down a bit.
I started an additional pair of subaccounts this week, with altered rules. Trade size is $200, and another $200 limit order is place about 1/2 daily ATR away in the direction of the trade. I'm about 2% in the hole right now with $470 margin used while the trend gets established. I may have screwed this one up by closing some trades early and taking some losses though.
I think this could handle $400 trade size, although a black swan event might crash it. That would give a 5.35% return per week which is extraordinarily high and doesn't seem sustainable. (compounded weekly, that's 15x per year. compounded monthly, it's 10x.)
I might add a rule about closing correlated pairs if one or two turn against me (JPY pairs, exotics).
So am I just having a lucky day? I trade once per day, about 8am NY time. Should I expect a huge downturn? Lastly, I've not used stops yet. I've had a few trades move 150 pips or more against me during the day. Any ideas on the use of stops?