Started the October with -$1790 was not a nice things. I screwed up this trade and accept the whole faulty. I finished backtesting currency for last 10 days with old-but-modified method and it's good. Except for JPY coz I don't even bother to backtested it.
Now, here's the important thing I want to share. The primary focus is not how much I made from the historical, but how much I may stopped out. The method's like this.
1. Identified the entry point
2. Analyzing the best stop-loss placement
3. Adjust the entry based on my maximum Stop-Loss
Funny that my entry based on how much I can afford to lose per trade. I set my max SL is 10 ticks per trade. The longer I trade, the more sensitive I think about Stop Losses. I don't really care about the profit. As long as it's bigger than my losses I'll be fine.
I found out the best placement of stop loss is 1 tick above/below high/low candles before the breakout. Old trick right? But the old trick seemed very profitable.
Here's the currency from best to worst best on winning percentage:
1. AUD
2. CAD
3. EUR
4. GBP (almost tie with No.3)
5. JPY (why even bother?)
If I made position sizing like 2:1, I'll be rich in no time. But I don't have the guts and my capital won't allow me to do that. The ideal capital amount for position sizing is 10 contracts max. My max contract will be 3 :(
Dear De'Trader
ReplyDeleteThanks for sharing the best test result. Like my AUD/USD trade this morning, it triggered my SL and fall like a river of no return.
if u trade 1-3 contract on FX u will be rich in no time too hahaha :) why not?