Position Trading Journal

I have been demoing a position trading method over the last few months, results look promising. I have not traded this live as of yet. Since this is a position trading method there will at times be large unrealized losses. Over the last few months I have not had a losing trade. If this method keeps performing the way it has been I should not take a loss very often, hopefully never. I am not putting the rules of my method on the thread simply because I have not traded it live for long enough to know the long term implications. If it is successful over time and anyone is interested I will share. Please do not try to copy my trades, you will probably blow your account if you attempt to emulate without knowing my risk management. Anyway I have one trade in at the moment this is the first live trade on this method.

Open Trades
Long Eur/Usd 1.3519 Currently at -27 pips
Profit 0 pips
Loss 0 pips

Wish me luck.

Not much going on today still just the one trade, markets not moving much at the moment. This is a long term strategy so there will be a lot of boring times, which is hard to get used to. It is hard to resist that one trade just to pass the time. Maybe I will open a $10 oanda account for those times lol.

Eur/Usd trade is currently -46

Time to wait for the market to move, be back tomorrow.

Been busy, have been demoing this system a bit more, found a flaw that I did not think of earlier. Will restart at a later date as soon as I figure out how to avoid this problem in the future.

Starting over tonight, got out of first trade around breakeven. Not going to count it since I decided to stop, so this will be the official first trade of the system.

Long Eur/USD 1.35456 Currently -1.5 pips.

Got into this trade late, was not at comp at open of the day which is generally when trades are entered or managed.

So that is currently the only position open atm, we will see what the market does tomorrow.

I am trading with a tiny Oanda account until I prove the system live over at least a few months if not a year. This is the first trade taken in the account. I have 2 separate accounts one with 18.4442 the other has 18.5645 in it. I am trading 18 units per trade atm, my trading size will be how many units I can trade and the market go against me 10000 pips and not lose my account. Just thought I would put that out there, keep in mid that I do not trust the method enough yet to put decent money on it so please do not copy my trades.

So far
Day 1
--------------------------
Profit 0
Loss 0
DD .04% .04%
MaxDD .04%
Balance 37.0087

Day 2

Eur/use position is currently at -25.3 pips. Nothing to do today but wait.

Oanda follows FIFO rules in their accounts. Their rules state that if multiple positions are taken on the same pair of the SAME size the oldest one has to close first. Since we will have multiple entries with different stop losses that will not do. So I have devised a work around. It is not perfect but it will have to do. My work around is this, I will never have 2 trades of the same size open. The current trade is 18 units, if I go into profit and open another trade it will be 17 units, then 16, 15 etc. although it will skew the results it should still prove to me whether this is going to be profitable in the long run. If I decide to go with this method in a properly funded account all positions will be the same size until it is time to compound.

Day 3

Positions Open
----------------------
Long Eur/USD 1.35456 +37.2

Profit 0
Loss 0
DD 0
MaxDD .21%
NAV 37.07
Balance 37.0087

Position going my way thus far today, if tomorrows close is positive as well will lock in a little and look for next position.

Day 4
Positions Open
----------------------
Long Eur/USD 1.35456 SL 1.35695 Currently +76

Profit 0
Loss 0
DD 0
MaxDD .21%
NAV 37.13 +.37%
Original balance 37.0087
Balance 37.0088

Moved my stop up have roughly 24 pips locked in, looking for next position, my balance has actually had a gain after swap somehow, not real sure how it happened, since the swap is negative. Only 1/100th of a penny, just kind of curious how I gained that amount, while holding a negative swap. Anyway, things going as planned so far. Nothing to do except wait and see if I get taken out in the next day or so or if I get another entry.

Added trade explorers to the thread. I have it split into 2 accounts the first is for longs. The second is for shorts. I sometimes will have a long and a short at the same time, during trend changes especially.

Stop got hit a couple hours ago for +24 pips. Currently no positions going into the weekend. Is not what I was hoping for but that is the market. Will be buying again at open Monday if this bar closes bearish, which it should. Gone for the weekend, maybe next week will give a little more action.

Day 5

No positions open.

Profit 24 pips +.11%
Loss 0
DD 0
MaxDD .21%
NAV 37.0513
Original balance 37.0087
Balance 37.0513

Week 2
Day 1
As stated Friday I bought today on days open.

Positions

Long Eur/Usd 1.35694 currently at -2

will update stats in a bit.

Hi Rgrace
You must define your loss in real terms before opening a position.
-100pips? -200-500? at what point would you let your ego go and admit simply that you are wrong.That is the key.Overcoming your ego and being respectful of market.
Truth is amateurs focus on profits pros focus on risk.To be honest to learn to take a loss is more important in the long run.Your approach " I should not take a loss very often, hopefully never." is counter to everything trading is.
Good luck
By the way to overcome closing of multiple position on Oanda is to place Stop loss very close and have it hit.

I understand what you are saying, but my definition of risk is different than yours. Pull up a monthly chart of Eur/usd for the last 20 years. Look at the highs and lows. It is around 8000 pips. My positions will go 10000 pips before a loss. Like I said in the beginning I am testing this with a tiny account to prove it is profitable. I appreciate your reply but at this point we will have to agree to disagree. I truly believe from my back testing and demo trading that this will be profitable long term. I do trade other methods as well that involve a small stop loss and am successful with that. This is a more long term position trading approach. As far as ego, I do not care if the position is wrong, because if it is I will trade the opposite direction stacking as I go, the market will eventually come back or I will make money going the opposite direction, usually both will happen. Trading is many things to different people, there is no one way to trade, also there are different ways to manage risk. Over time this method will be successful as long as I stick to my plan. Counter to everything that is trading? Or counter to your beliefs about trading? The only goal of trading is to make more profit than loss overtime. If a method achieves that it has done it's job, actually let me rephrase that if a trader does that he has done his job. Thanks for the comment feel free to stop back in .

My understandings of the FIFO rules on oanda are as follows, If I open a position now, then add one later. The first position has to close before the second one. My understanding on this is that stop loss will not work because they will not close the second position until the first is closed. So regardless of stop loss since both would close at once, you may have a loss on a position that you had a stop loss at break even. My understanding may be wrong, but from reading their rules stop loss would not matter if the position was not the first one open. So if I were stacking positions and had stop losses on both moved to break even I would lose money because the second would not close at breakeven.

From oanda's website

"If the trade is not the oldest trade of the same currency pair and unit size, a message tells you the trade cannot be closed. You are given a choice to either close the oldest trade instead, or to cancel the request."

That is for manually closing a trade, not sure what would happen if stop losses were hit, guess would be either the older position is closed then the new position, which would not be ideal for position trading, or the stop would be ignored till the older position gets stopped out, either way it will not work well for position trading when you are looking to keep trades for weeks or months at a time and adding as things go your way.

The rule also says that of the same position SIZE which is why I will be changing lot sizes and have a different lot size for each open trade. I wish they would just do it on the back end accounting like most brokers but no they have to be difficult .

Eur/Usd position is currently at -8 nothing to do today but wait till market decides which way to move.

At the moment my position is +25 pips, if market closes up tomorrow, will move stop to break even or slightly positive and wait for next setup.

Market has went against my position, we have a lower high and a lower low on daily. Could be a retrace or a trend change. Looking to sell as soon as I get an up day. Original position will stay, market will decide which is correct then will add in that direction. Nothing to do other than wait yet again .

Sold Eur/USD today. My positions are currently

Long Eur/USD 1.3569 Currently -29 pips
Short Eur/USD 1.3522 Currently -16 pips

Market will move one way or the other eventually, then will add positions as it moves into profit every time I get a signal.

My long trade has moved into profit. Market has been ranging for last couple of weeks. Euro seems to have restarted the previous uptrend. At the close of the day I will lock in a little profit and look for next position.

Positions

Long Eur/Usd 1.3569 +113
Short Eur/USD -161

Will update later after I lock in profit.