Journey to Ascendancy

My Trading Plan

This is a long-term trend-following strategy in which I will gather positions throughout the FOREX market from the 28 pairs my broker offers me. My goal is to develop a low risk, very diversified foreign exchange portfolio that will grow over the course of the next several years and more. Capital lost while gathering positions will be replenished by covering/closing low-profit trades in a form of diversification once said positions are acquired. From my starting capital, 50% is in my trading account while the other half is held to replenish my acct balance when I start to get low bc of margin requirements.

Positions will be accumulated by discretionary trading. Once profit is established, all risk is cleared from trade and made available to fund future trades in same pair. Losses will be limited by using discretion stops; taking lot size (% risk) in to consideration. Hedging will be used once a solid portfolio is established to limit risk.


I will post a position update at the end of each month. Please feel free to PM me with any questions & comments on this.

I started trading live on May 9th. The first week was definately a learning experience in itself. I underestimated my risk exposure across the Forex market, even with trading smaller lots. My acct fluctuated 15% in that first week. Not good. After decreasing lot size and being sure not to overtrade, my acct balance has only shown 3% volatility per week which is MUCH better.

Due to privacy reasons and the lack of time to verify that positions are maturing I will delay my position updates by 1 month. At the end of June I will post my positions acquired during the month of May.

'till next time

~EE

Trades acquired in May and still open..

INVENTORY PURCHASED:

May '11:

NZD/USD
.7895
.7938


INVENTORY SOLD:

May '11:

USD/CHF
.8903
.8824
.8877
.8858

USD/JPY
81.46

June update @ the end of July!

June purchases:

Chf/Jpy
94.47

Nzd/Usd
.8041


June sells:

Gbp/Chf
1.4034
1.3994
1.3923
1.3790

Eur/Cad
1.4191

Usd/Cad
.9832

Eur/Aud
1.3616
1.3621


Txt files updated with current open trades from May & June as of 7/30/11

Trades acquired in July and still open as of today, Aug 31st..

INVENTORY PURCHASED:
-None-

INVENTORY SOLD:
EUR/CHF
1.2280

USD/JPY
80.68


July was a great month aquiring positions but as you can see, there were some huge counter-trends happening in the market around the first two weeks of August which wiped them all out. Not many people can watch +25% of their acct (unrealized profit) close back to breakeven. At the time I was reminded of the quote:

So I was able to establish some good buy positions (mostly Chf shorts) in August. Hope to see them still open in the next update Sells are coming too with recent Aud & Nzd strength, Eur & Gbp weakening vs 'em.

Equity-wise I'm currently -12% of my total account. I have a goal to have an established positive acct equity (capital + open trades) by the 6th month (October) and have replenished all starting capital by the 18th month (October 2012). Which is when I hope this seedling will break soil and start its stretch to the sun.

new sig

Thought I'd post a few charts every now & then to show what these trades look like. All screenshots are from daily charts. Since my broker is here in the US, I use separate accts for long & shorts.

Eur/Usd (Short)
http://i51.tinypic.com/34pdks3.jpg

Gbp/Jpy (Short)
http://i56.tinypic.com/122emte.jpg

Eur/Nzd (Short)
http://i52.tinypic.com/2u557gy.jpg

Eur/Chf (long)
http://i53.tinypic.com/5l1gr4.jpg

Wow, August was a tough month! Considering that my portfolio had more long Chf than any other pair. Didn't help that Nzd & Aud went down the drain either as of late.

With these markets when one door closes, another opens..

Trades from August that are still open:

INVENTORY PURCHASED:

Aug '11:

Eur/Chf
1.0479
1.0558
1.0655

Gbp/Chf
1.1887
1.2557


INVENTORY SOLD:

Aug '11:

Chf/Jpy
104.08

Eur/Usd
1.4520

Eur/Cad
1.4148

Eur/Jpy
110.29

Gbp/Jpy
129.82
125.12

Txt files are identical to post except a U/Jpy short.