Because of my involvment in selling of currency futures options, I have trained myself to be risk manager than a trader. I chose not to worry about how to enter the trades. Rather how to manage unguided trades.
This is my first serious attempt at understanding spot fx trade and risk management.
The broker stopped trading on my account because of inactivity for more than 30 days (minimum one trade is needed in a month to keep demo account open) caused by drawdown. So I had to stop this experiment.
I will now lauch new account by learning from this experience.
Basically, it is hybrid trading. It gave me a good exposure to travails of random trading .
Conducted actively between Jan 21 and May 15, Brexit triggered momentum, volatility , trends, reversal , choppy trading, consolidation and rotation. And at times anxiety inspite of it being a demo account.
It is a pure price action play with no filters applied. No Holds barred, literally.
Entry logic was based on currency strength drivig pure random trading unguided.
Focus was on managing trades rather than predicting the direction of the trades.
It is a classical demonstration of how management of positions, margin and risks on a platform that permits hedging using single margin can baby-sit drawdown comfortably while continuing with the pips churning machine.
In this case, the currency strength EA was shooting directionless trades. If momentum was pushing trend, proft gain was quick. If there was choppy trading, it was contributing to drawdown. Within a few seconds, both buys and sells were being executed with me a mute spectator.
Lack of planning on margin level percentage pushed trades to occupy 18 maximum positions and cripped trading and also triggered broker's stopout levels.
After 50 days of trading , machine stopped churning pips while preserving scant margin level% to shake off drawdown and steer the trades back to Balance Line after next 32 days. Total duration was 82 days. Productive 50 days .
After the account stop-out levels were triggered, the broker deactivated the margin line and did not allow any new trades to be conducted. However, the open trades were allowed either to recover or die.
On the whole, learned a lot about the sheer power of random price action trading without using any kind of filters.
It was a good lesson on managing margins, lots, hedging, drawdown, counting costs of trading because of 32 idle days pushing up the borrowing interest costs for leverage facility.
Above all it was worth feeling the power of patience and seeing drawdown moving from one extreme end to another one like a pendulam.
This is my first serious attempt at understanding spot fx trade and risk management.
The broker stopped trading on my account because of inactivity for more than 30 days (minimum one trade is needed in a month to keep demo account open) caused by drawdown. So I had to stop this experiment.
I will now lauch new account by learning from this experience.
Basically, it is hybrid trading. It gave me a good exposure to travails of random trading .
Conducted actively between Jan 21 and May 15, Brexit triggered momentum, volatility , trends, reversal , choppy trading, consolidation and rotation. And at times anxiety inspite of it being a demo account.
It is a pure price action play with no filters applied. No Holds barred, literally.
Entry logic was based on currency strength drivig pure random trading unguided.
Focus was on managing trades rather than predicting the direction of the trades.
It is a classical demonstration of how management of positions, margin and risks on a platform that permits hedging using single margin can baby-sit drawdown comfortably while continuing with the pips churning machine.
In this case, the currency strength EA was shooting directionless trades. If momentum was pushing trend, proft gain was quick. If there was choppy trading, it was contributing to drawdown. Within a few seconds, both buys and sells were being executed with me a mute spectator.
Lack of planning on margin level percentage pushed trades to occupy 18 maximum positions and cripped trading and also triggered broker's stopout levels.
After 50 days of trading , machine stopped churning pips while preserving scant margin level% to shake off drawdown and steer the trades back to Balance Line after next 32 days. Total duration was 82 days. Productive 50 days .
After the account stop-out levels were triggered, the broker deactivated the margin line and did not allow any new trades to be conducted. However, the open trades were allowed either to recover or die.
On the whole, learned a lot about the sheer power of random price action trading without using any kind of filters.
It was a good lesson on managing margins, lots, hedging, drawdown, counting costs of trading because of 32 idle days pushing up the borrowing interest costs for leverage facility.
Above all it was worth feeling the power of patience and seeing drawdown moving from one extreme end to another one like a pendulam.
Practice makes a person perfect
