My system experiences 150 to 200 pip magnitude drawdowns about 3.4 times a year, on average.
That's part of the business, I cannot control what the market is doing, I can only manage my losses and keep them under control.
Post your live Forex trades here...
- Thread starter xelite777
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My system experiences 150 to 200 pip magnitude drawdowns about 3.4 times a year, on average.
That's part of the business, I cannot control what the market is doing, I can only manage my losses and keep them under control.
These 2 pairs are only moderately correlated on the 1 hour time frame.
Actually it was quite safe to double the size because of the high negative correlation on higher time frame.
These 2 pairs are only moderately correlated on the 1 hour time frame.
Actually it was quite safe to double the size because of the high negative correlation on higher time frame.
On the 5 min, AUD/CHF and EUR/NZD were negatively correlated (minus 95.5%), during the last 200 periods
On the 1H, AUD/CHF and EUR/NZD were also negatively correlated (minus 72.6%), during the last 200 periods
So being long the 2 pairs at the same time was a stupid move (done for educational purpose in this case).
And again, I trade with 15 min charts, so even if pair A and B are highly correlated on a higher time frame, it does not matter a bit if you trade on a smaller time frame.
Again, the trader needs to calculate the correlation on the exact time frame he is using, otherwise the results are worthless.
Break-even trade after after reaching a maximum favorable excursion of 30 pips.
This is a typical yo-yo trade, they move in your favor and then revisit your entry point later.
It should be interesting to study the subsequent behavior of such trades after that type of movement...
Maybe you could make a little money on the yo-yo trades by exiting on a small profit target, rather than trailing stop.
Uneasy trade as I am currently receiving mixed short signals from the EUR/USD.
And since these pairs are correlated most of the time...
I tested that idea already (exiting position a +1 pip profit for example, or X pips profit).
It simply degrades the performance of the system.
Position is now open.