My multi-currency trade journal

Hi Rap,

Thank you for your much appreciated advice . The reason that I record the day-by-day changes for all these parameters is simply to keep a detailed public diary of the progress of my trading... not only for accounting purposes, but also to keep me personally answerable for my day-to-day decisions. I know what this simple method can achieve over the long-term based on my back test data, so I really don't stress (too much, lol) about the day-to-day fluctuations in the equity (see posts #45 and #49). I do have a monthly goal for the %gain of the balance, but it's buffered by my directive that the floating %DD has be held at or below 20% (preferably less than 10%, but the more aggressive I am in closing profitable positions, the higher the drawdown, but as I explained in post #49, I do have rules in place that mitigate the extent of the %DD).

At some point, I may start posting screenshots of the indices that I keep track of for each of the major currencies (see post #1), but in reality, I have no idea where tomorrow's prices are going to be... and really don't want to pretend that I can determine with any accuracy the future direction of any price movement. All I know is what price has done in the past up to the most current tick. That's why I've been shying away from posting "analysis" of my indices, because it doesn't really matter what "I" think might happen... I will say that drawing a trend line on a monthly line chart for each index is the extent of my analysis, and that the current price is either above/below that line. However, the closer that I can make my trading truly non-directional, the better. So most of my time is spent managing my inventory of positions; I'm more focused on the decisions I need to make, and the most productive actions that I need to take, in order to keep my %DD at a reasonable level while increasing my account balance on a month-end to month-end basis. As always... a "work-in-progress"... and I love it


Dave

Update as of 8:00 pm EST, 7/7/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week3

Account balance (6/23/14): $119.33
Account balance (7/7/14): $123.00
%gain = 3.1%
Floating P/L = -$19.15
Net Asset Value = $103.85
% Floating DD = 15.6%
Positions open: 29
Average No. units per position = 47
Margin used = $32.60
Margin Available = $71.25
% Margin used = 46%
RISK = ~$2.35 per 500 pips draw down per position (= ~$68 for all open positions)
%RISK = $68/$123.00= 55%

Update as of 9:00 pm EST, 7/8/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week3

Account balance (6/23/14): $119.33
Account balance (7/8/14): $123.12
%gain = 3.2%
Floating P/L = -$19.83
Net Asset Value = $103.29
% Floating DD = 16.1%
Positions open: 29
Average No. units per position = 47
Margin used = $32.53
Margin Available = $70.76
% Margin used = 46%
RISK = ~$2.35 per 500 pips draw down per position (= ~$68 for all open positions)
%RISK = $68/$123.12= 55%

Dave, looks like you have a nice start. Good luck with your journey.

Thanks for your kind words Mac D... best to you as well...

Dave

Update as of 9:00 pm EST, 7/9/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week3

Account balance (6/23/14): $119.33
Account balance (7/9/14): $123.25
%gain = 3.3%
Floating P/L = -$18.96
Net Asset Value = $104.30
% Floating DD = 15.3%
Positions open: 29
Average No. units per position = 47
Margin used = $32.71
Margin Available = $71.59
% Margin used = 46%
RISK = ~$2.35 per 500 pips draw down per position (= ~$68 for all open positions)
%RISK = $68/$123.25= 55%

Update as of 9:00 pm EST, 7/10/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week3

Account balance (6/23/14): $119.33
Account balance (7/10/14): $123.25
%gain = 3.3%
Floating P/L = -$22.05
Net Asset Value = $101.20
% Floating DD = 17.9%
Positions open: 29
Average No. units per position = 47
Margin used = $32.62
Margin Available = $68.58
% Margin used = 48%
RISK = ~$2.35 per 500 pips draw down per position (= ~$68 for all open positions)
%RISK = $68/$123.25= 55%

This seems to parallel the week I have had so far. very slow. Watch the Canadian news in the morning though.

Fprtunately it did not trigger the pending trades up but did trigger my "hedge pender", I made some 50 pips on a day that I consider to be quiet.

Great job Rap BTW... what's a "hedge pender"????

Update as of 4:00 pm EST, 7/11/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, End of week3

Account balance (6/23/14): $119.33
Account balance (7/11/14): $123.25
%gain = 3.3%
Floating P/L = -$20.78
Net Asset Value = $102.46
% Floating DD = 16.9%
Positions open: 29
Average No. units per position = 47
Margin used = $32.61
Margin Available = $69.85
% Margin used = 47%
RISK = ~$2.35 per 500 pips draw down per position (= ~$68 for all open positions)
%RISK = $68/$123.25= 55%

When you set up pending trades on some pairs, expecting a currency to go one way during the news, Set up other pairs to go the other way. You can usually do this and keep the advantage of the swap. mine have been set now for some 4 months, mostly.

Set the pending trades up behind S/R lines for a little sashay protection. During news events, market makers try to get traders to commit to trades as quickly as possible, since their profits depend on the spreads being paid. These trades are usually closer than a reasonable s/r line to current market price.

A "Hedge Pender" is activated when the news surprises you and goes the other way. In this case the pending Sell Stop of the USDCAD was not activated, but the Buy stop of the the AUDCAD was. It is a form of bracketing. Use S/R lines so you do not get too close to the current market price and get the wrong pending trade triggered.


It is really not a Hedge, since the other side does not get activated.

When neither pair is the focus of the exchange centers of the moment I remove their pending trades. When one side gets activated, I remove the other.

I try to avoid having a pending trade activated for reasons other than I hoped for.

My "hedge" pairs I treat a little differently than the other pairs. More conservatively. They are for when the currency does not go according to my long term bias on a currency. My bias for the loonie is to buy, because The most prosperous nations are its customers.

The problem with this approach is the Aussie. Its swap is so big, and its record so positive, that it is difficult to "hedge pend" against it.

Am I making sense?

Rap, do you trade any of the exotics? I have found them to be a nice addition in my portfolio. They can be volatile, but if added conservatively they can help to keep a healthy net positive interest portfolio.

I do not trade the exotics - yet.
Cross currency hedged trading with exotics..... Hm...

Perhaps another reason to switch to Oanda...

I like Oanda, they pay interest daily, including the weekends and they prorate for the time you held it.

Yep, understood...

Update as of 9:00 pm EST, 7/14/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week 4

Account balance (6/23/14): $119.33
Account balance (7/14/14): $123.25
%gain = 3.3%
Floating P/L = -$20.68
Net Asset Value = $102.57
% Floating DD = 16.8%
Positions open: 30
Average No. units per position = 47
Margin used = $33.95
Margin Available = $68.62
% Margin used = 49%
RISK = ~$2.35 per 500 pips draw down per position (= ~$71 for all open positions)
%RISK = $71/$123.25= 58%

Update as of 9:00 pm EST, 7/15/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week 4

Account balance (6/23/14): $119.33
Account balance (7/15/14): $124.26
%gain = 4.1%
Floating P/L = -$18.80
Net Asset Value = $105.46
% Floating DD = 15.1%
Positions open: 31
Average No. units per position = 46
Margin used = $35.60
Margin Available = $69.86
% Margin used = 51%
RISK = ~$2.30 per 500 pips draw down per position (= ~$71 for all open positions)
%RISK = $71/$124.26= 57%

Update as of 9:00 pm EST, 7/16/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week 4

Account balance (6/23/14): $119.33
Account balance (7/16/14): $124.68
%gain = 4.5%
Floating P/L = -$20.38
Net Asset Value = $104.30
% Floating DD = 16.3%
Positions open: 30
Average No. units per position = 47
Margin used = $33.51
Margin Available = $70.79
% Margin used = 47%
RISK = ~$2.35 per 500 pips draw down per position (= ~$71 for all open positions)
%RISK = $71/$124.68= 57%

Update as of 9:00 pm EST, 7/17/14....
Current month start date:6/23/14
Current month end date:7/18/14
MONTH 2, week 4

Account balance (6/23/14): $119.33
Account balance (7/17/14): $124.71
%gain = 4.5%
Floating P/L = -$23.50
Net Asset Value = $101.21
% Floating DD = 18.8%
Positions open: 29
Average No. units per position = 47
Margin used = $32.45
Margin Available = $68.76
% Margin used = 47%
RISK = ~$2.35 per 500 pips draw down per position (= ~$68 for all open positions)
%RISK = $68/$124.71= 55%