As mentioned in the title, this trading journal is about trading 7 currency pairs using a variant of W.Wilder's Reaction Trend System (RTS). RTS is first introduced in his first book, 'The New Concepts in Technical Trading System', published in 1978.
What I like about RTS is its ability to work in both ranging and trending market. Besides, I am looking for a mechanical daily system that doesn't need much time to maintain per day. After some short term forward testing, I got some nice results with RTS. However, I am not sure how this system will work in long term, while I couldn't find any back test or forward test results in long term for this system either. Thus, I decided to do my own forward testing for at least 1 year.
I do the test on a small live account with the following 7 currency pairs:
EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, USDCAD, NZDUSD
I started the test on 19 Feb 2008. I set up and maintain the trades on GMT 00:00 each day. At the end of Feb, the trading status are as follow:
Closed Trades' results:
EURUSD +125 pips
USDJPY -133 pips
GBPUSD +50 pips
USDCHF +298 pips
AUDUSD +1 pips
USDCAD +53 pips
NZDUSD +28 pips
Total pips made from 19 Feb to 29 Feb = +422 pips
Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +73 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +2 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L 107.43
AUDUSD - Long since 29/2/2008 at 0.9383, S/L 0.9247
NZDUSD - Short since 29/2/2008 at 0.8019, S/L 0.8220
*S/L may move daily to lock in profit or reduce potential loss depending on system's rules
I will try to update this journal at least once on each trading day. I hope that RTS will be profitable in long term. Thanks for reading this journal.
Geoff
What I like about RTS is its ability to work in both ranging and trending market. Besides, I am looking for a mechanical daily system that doesn't need much time to maintain per day. After some short term forward testing, I got some nice results with RTS. However, I am not sure how this system will work in long term, while I couldn't find any back test or forward test results in long term for this system either. Thus, I decided to do my own forward testing for at least 1 year.
I do the test on a small live account with the following 7 currency pairs:
EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, USDCAD, NZDUSD
I started the test on 19 Feb 2008. I set up and maintain the trades on GMT 00:00 each day. At the end of Feb, the trading status are as follow:
Closed Trades' results:
EURUSD +125 pips
USDJPY -133 pips
GBPUSD +50 pips
USDCHF +298 pips
AUDUSD +1 pips
USDCAD +53 pips
NZDUSD +28 pips
Total pips made from 19 Feb to 29 Feb = +422 pips
Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +73 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +2 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L 107.43
AUDUSD - Long since 29/2/2008 at 0.9383, S/L 0.9247
NZDUSD - Short since 29/2/2008 at 0.8019, S/L 0.8220
*S/L may move daily to lock in profit or reduce potential loss depending on system's rules
I will try to update this journal at least once on each trading day. I hope that RTS will be profitable in long term. Thanks for reading this journal.
Geoff