My multi-currency trade journal

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

Account balance (6/23/14): $119.33
Account balance (7/18/14): $124.71
%gain = 4.5%
Floating P/L = -$23.00
Net Asset Value = $101.71
% Floating DD = 18.4%
Positions open: 30
Average No. units per position = 47
Margin used = $33.83
Margin Available = $67.88
% Margin used = 50%
RISK = ~$2.35 per 500 pips draw down per position (= ~$71 for all open positions)
%RISK = $71/$124.71= 57%

your floating P/L is less than 1/4 you balance. That is a sign of good health. I expect your net value to get closer to balance with time

still having fun? Ask yourself how many other people started with a 100 dollar account when you did and where most of them are now.

Summary: Month 2

1. Monthly %gain (4.5%) on par with the average monthly %gain obtained during my back testing (7-year monthly average = 4.5%, range: 3% - 14%, Ave p.a. = 54%).
2. Floating %DD is at 18%, still within the range found during my back testing (0 - 27%; average = 15.4%). There were times during the back testing that the %DD = 0%; this occurred when the sum of the losing + winning positions yielded an overall %gain of ~1% and ALL positions were then immediately closed. My highest monthly %gains (double digit) always occurred following the closing of all positions.
3. Overall, the equity is down ~2% from the initial balance.

Let me say this: at the end of my seven year back test (repeated 14 times), my starting account equity went from $100 USD to an average of $4140 USD (range: $3727 - $4507; this includes closing all losing positions at the end of the seven year testing period). Modest gains, but nevertheless shows the power of reinvesting and compounding the gains even when initially trading with nanolot position sizes. But what's really encouraging is the back testing that I just completed (over the same seven year data period): when I added $40 to the account at the end of every month throughout the seven year testing period (total additional investment = $3360), the average gain (N=14 back tests) increased substantially to $38,848 (range: $34,298 - $43,080). I will now be adding $40 to my account at the end of every month- this rescinds my comment made in post #36.

All this analysis is just food for thought, but my back testing does show that one can substantially build up a small nanolot account given time and patience and adding a few bucks to your account at the end of every month...we all have that - time & patience, right?

Dave

Hey Rap!

I'm still having fun! And believe me, in a thousand years I would have never thought that patience & prudence would be considered fun...never fit my Modus operandi- until now...

Now, back to more testing...

Dave

From post #83: Deposited $40 USD to my account....

Update as of 6:00 am EST, 7/20/14....
Current month start date:7/21/14
Current month end date:8/22/14
Start of Month 3

Account balance (7/20/14): $164.68
%gain = 0%
Floating P/L = -$23.00
Net Asset Value = $141.61
% Floating DD = 14.0%
Positions open: 30
Average No. units per position = 47
Margin used = $33.85
Margin Available = $107.76
% Margin used = 31%
RISK = ~$2.35 per 500 pips draw down per position (= ~$71 for all open positions)
%RISK = $71/$164.68= 43%

a logical next step, now that you have confidence in your method. A Larger account , sensibly handled ( and not nightingaled, or on fixed percentaged) is inherently more stable.

Update as of 9:00 pm EST, 7/21/14
Current month start date:7/21/14
Current month end date:8/22/14
Month 3, week 1

Account balance (7/20/14): $164.68
Account balance (7/21/14): $164.64
%gain = 0%
Floating P/L = -$22.98
Net Asset Value = $141.66
% Floating DD = 14.0%
Positions open: 31
Average No. units per position = 47
Margin used = $34.81
Margin Available = $106.65
% Margin used = 33%
RISK = ~$2.35 per 500 pips draw down per position (= ~$73 for all open positions)
%RISK = $73/$164.64= 44%

Update as of 10:00 pm EST, 7/22/14
Current month start date:7/21/14
Current month end date:8/22/14
Month 3, week 1

Account balance (7/20/14): $164.68
Account balance (7/22/14): $164.89
%gain = 0.12%
Floating P/L = -$24.42
Net Asset Value = $140.47
% Floating DD = 14.8%
Positions open: 32
Average No. units per position = 47
Margin used = $36.13
Margin Available = $104.34
% Margin used = 34.6%
RISK = ~$2.35 per 500 pips draw down per position (= ~$75 for all open positions)
%RISK = $75/$164.89= 46%

Yes. Increase the number of trades until they are at the max, then, when you gain equity, increase lot size slowly.

Update as of 9:00 pm EST, 7/23/14
Current month start date:7/21/14
Current month end date:8/22/14
Month 3, week 1

Account balance (7/20/14): $164.68
Account balance (7/23/14): $165.08
%gain = 0.24%
Floating P/L = -$24.43
Net Asset Value = $140.65
% Floating DD = 14.8%
Positions open: 31
Average No. units per position = 47
Margin used = $35.16
Margin Available = $105.49
% Margin used = 33.3%
RISK = ~$2.35 per 500 pips draw down per position (= ~$73 for all open positions)
%RISK = $73/$165.08= 44%

Keep up the good postings! I actually just started trading a very similar system based off what I have read from Rap, Nannigbob and others who have preached no TP or SL since the lot size is so small to account size. I only close a position if I feel it really has changed direction or if I reached my 1% goal (I also picked 1% gain as a number that i should close all positions and restart the "basket".)
I liked your math that you could withstand a 14,000 pip loss and only lose 50% max of your account. I also came up with a similar max risk number
You are looking at 50% return/year if you take 100 to 4140 in 7 years which is an incredible number. I am using exotic pairs in my system, if they cause issues I will drop back down to the standard 28 pairs

Update as of 9:00 pm EST, 7/24/14
Current month start date:7/21/14
Current month end date:8/22/14
Month 3, week 1

Account balance (7/20/14): $164.68
Account balance (7/24/14): $165.46
%gain = 0.47%
Floating P/L = -$24.51
Net Asset Value = $140.95
% Floating DD = 14.8%
Positions open: 31
Average No. units per position = 47
Margin used = $34.68
Margin Available = $106.27
% Margin used = 32.6%
RISK = ~$2.35 per 500 pips draw down per position (= ~$73 for all open positions)
%RISK = $73/$165.46= 44%

Hi Sherpa,

Thank you for the comment... looking forward to reading more about your trading style. Are you going to start a journal? Bilstein also promotes a no TP/SL trading approach; if you haven't already, I'd highly encourage you to read his posts.. especially those in the "Trading without a stoploss" thread. Very enlightening. I only trade the "28" (7 majors + 21 synthetics) since they are mathematically tied to one another and thus form pseudo hedges. Have never traded the exotics, but will keep a close eye on your results.


Best,

Dave

I haven't started a journal only because I am forward testing in Demo right now. I may go Live in a few weeks. So I am hesitant to post a system that may not work. Yes I am inspired by Bilistien as well, I reread his posts 5-6x in the past 2 weeks

Send me a PM (I can't send you one on your profile) and I can describe my system to you.

Update as of 4:00 pm EST, 7/25/14
Current month start date:7/21/14
Current month end date:8/22/14
Month 3, End of week 1

Account balance (7/20/14): $164.68
Account balance (7/25/14): $166.00
%gain = 0.80%
Floating P/L = -$24.36
Net Asset Value = $141.66
% Floating DD = 14.7%
Positions open: 31
Average No. units per position = 47
Margin used = $34.62
Margin Available = $107.03
% Margin used = 32.3%
RISK = ~$2.35 per 500 pips draw down per position (= ~$73 for all open positions)

Update as of 9:00 pm EST, 7/28/14
Current month start date:7/21/14
Current month end date:8/22/14
Month 3, week 2

Account balance (7/20/14): $164.68
Account balance (7/25/14): $165.94
%gain = 0.77%
Floating P/L = -$24.10
Net Asset Value = $141.84
% Floating DD = 14.5%
Positions open: 34
Average No. units per position = 47
Margin used = $38.67
Margin Available = $103.17
% Margin used = 37.5%
RISK = ~$2.35 per 500 pips draw down per position (= ~$80 for all open positions)
%RISK = $80/$165.94= 48%

Update as of 9:00 pm EST, 7/29/14
Current month start date: 7/21/14
Current month end date: 8/22/14
Month 3, week 2

Account balance (7/20/14): $164.68
Account balance (7/29/14): $167.16
%gain = 1.51%
Floating P/L = -$24.20
Net Asset Value = $142.96
% Floating DD = 14.5%
Positions open: 34
Average No. units per position = 48
Margin used = $39.35
Margin Available = $103.61
% Margin used = 38%
RISK = ~$2.40 per 500 pips draw down per position (= ~$82 for all open positions)
%RISK = $82/$167.16 = 49%

Hi Dave,

Looking into trying this out on about the same budget, haha... I have a question on your margin though.. Shouldnt your % margin used be based on total margin, and not available margin?


Trev

Update as of 8:30 pm EST, 7/30/14
Current month start date: 7/21/14
Current month end date: 8/22/14
Month 3, week 2

Account balance (7/20/14): $164.68
Account balance (7/29/14): $168.35
%gain = 2.23%
Floating P/L = -$21.51
Net Asset Value = $146.85
% Floating DD = 12.8%
Positions open: 32
Average No. units per position = 49
Margin used = $37.57
Margin Available = $109.28
% Margin used = 34%
RISK = ~$2.45 per 500 pips draw down per position (= ~$78 for all open positions)
%RISK = $78/$168.35 = 46%

Hi Trev,

Yep, you're correct, but I chose available margin in order to decrease the likelihood that I would over-trade my account. The %Margin that I calculate overestimates my margin used (and underestimates my available margin), which keeps me safe

Dave