This morning, i woke up at around 0630HR SGT. From the moment i opened my eyes. I stretched my body a little. Took a brief look at the charts on my Samsung 7 edge. I quickly entered 2 short position of 0.001lot of USDJPY. There was neither any stop loss nor target set, Since over the weekend, i had already made up my mind to short USDJPY.
After which, i washed up a little, changed and headed for work. I had breakfast with my father and younger brother. My brother talked to me about feng shui (Chinese Geomancy). He was telling me how he felt about places that were lucky and unlucky. Basically, shopping mall where there was a lot of customer were lucky and shopping mall that were quiet often were unlucky. I would be better off if i used my laptop and do trading in places where businesses were good. I thought that made a lot of sense to me, quite logical i think.
I had fried beehoon, egg and ikan billis and one cup of coffee for breakfast. I felt guilty actually. So much for my resolution to eat healthy today. Maybe i will start tomorrow.
During breakfast, i entered one more short position. But the internet connection at the coffee shop was horrible and i ended up entering 2 shorts position of USDJPY instead of one. Luckily, i was trading with peanut lot sizes, so i had absolutely nothing to worry about.
Prices were trading way below 200EMA and 50EMA, MACD was bearish. Obvious bearish outlook for asian session today. I calculated the average daily range for USDJPY to be around 80pips. I set two of my shorts position with a target of 10pips each and one for 20pips target from my point of entry, and with a volatility of 80pips per day, i ought to hit my target i thought to myself. I leave one position open without a target in the hope to get lucky and catch a dragon.
As you can see from my portfolio screenshots, the value of 1pip was $0.09 . For the sake of easy calculation, i will take 1pip as a value of $0.10 . I have 4 position. My average level was around 110.500 . Although i did say that i didn’t i want to set any stop loss. After some thoughts, i decided that it would be wiser to place a protective stop for insurance. The stop loss was set at 111.101 , which was around Friday’s Daily High point. From my experience, this level should hold out. If not i’m willing to sustain this amount of loss. Which i work out to be 60pip x $0.10 x 4 = $24. A potential dent of approximately 5% (24/500 = 4.8%) in my capital account. I can live with that.
PS: Phew! finally done with this part of the post. i had to correct my grammar so many times. I think in time to come, my English should improve. I haven’t written so much for such a long time.
The chart almost never fail to make me feel constipated. Already midway pass Asian session and i haven’t hit any target yet.
1155HR SGT, Volatility was pathetic during the Asian session. Damn the dollar buyers and Yen seller during the Asian session. PEOPLE! The dollar is weak and Yen strong. Let’ see how long they can hold up the selling pressure. The only high impact news today would be tonight’s FOMC highlights. If the European session continue to be quiet. A major avalanche of USDJPY would be set in stone for the US session.
Guess what, there was free buffet in my department. Birthday lunch session for the AUGUST babies.
Today’s simply not the day for healthy meal. I need to seriously work on my cravings to eat unhealthy food without restrain.
Oh boy… Drawdown time
All position in the red.
I added another
2 Shorts USDZAR
2 Long AUDUSD
Targets were around 25% of daily average range. Protective stops were around Friday’s High. I’m pretty confident about my shorts on the dollar. AUDUSD might be a little risky as it seem that the Aussies had already reach new heights and a pullback might be on the horizons. Well, who knows Commodity pairs can be explosive. It might continue to move up further. No venture, nothing gain.
Something weird just happened!! Anyway, let me start by giving some background information. After my department lunch. I took time off from work. I went to watch a movie. The Meg
At 1:20pm SGT = 5:20pm GMT
Before the Movie, i had entered 2 USDZAR short position 0.001lot respectively. After my movie, to my horror. There were 2 Long USDZAR position 0.001lot each hedging my 2 USDZAR shorts. The longs were in profit. I was stunned for a few seconds. I quickly, closed the the longs that were in profit. My protective stops were at 15.20001 and the current position was at about 14.6++++. It was like 6000+ pips away. How could the spread have widen so much and hit my Buy stops order? I was in disbelief.
I was determined to investigate what had just happened. I went to the library just beside the cinema and srutinize thru all the recent trade log in My Dukascopy Reports section. Could someone else have opened those position?
The 2 Long orders opened at 0639HR GMT which was 0239 SGT
I was in the middle of the movie! There was no way, i could have opened those positions. Then i saw the description of the order, it was actually a preset limit Buy order. I started pondering, could i have entered those 2 buy limit order by mistake? I remembered just before the movie. The connection did seems quite bad when i tried to login using the phone app, i was unable to login. Thus, i login using the web platform from my phone browsers. I faintly remembered that i did input 2 Shorts order but there was no response and it seems that i have entered using conditional orders. I switch to the market execution option and entered my 2 Shorts USDZAR subsequently. Thereafter, i remembered that i did checked for whether there were any SHORTS PENDING ORDER that i could have entered by mistakes. There were none.
Now i’m going to give the benefit of doubt. And documenting this incident here in babypips for the record. I sustained no damage over this incident. But that’s not the point. It could have been my fault. Even if i have made the mistake it should have been Short conditional orders instead of a buy limit that was triggered at 06:39 GMT and i was in the movies.
Anyway, My 2 USDZAR shorts hit my target promptly while i’m posting this incident in my Trade Journal in babypips and i have cancelled my protective Buy stops for USDZAR.
Just for the record, i’m taking a screenshots of my current pending order.
There were no more USDZAR position! The image below is a screenshots of my current position.
For easier visualization for my fans, i have arranged them in a style for better understanding below.
2 USDJPY 0.001lot shorts position with
stop loss : 111.101
Take profit : 110.399
1 USDJPY 0.002lot pending buy stop order at 111.101
1 USDJPY 0.001lot short position
Stop loss : nil
Take Profit : 110.199
1USDJPY 0.001lot Short position
Stop loss : nil
Take profit : nil
(hoping to catch a dragon)
1 AUDUSD 0.002lot pending sell stop order
1 AUDUSD 0.001lot Long position
stop loss : nil
take profit : 0.73301
1AUDUSD 0.001lot Long position
stop loss : nil
take profit : 0.73201
My trade journal is exhausting! I totally drained now.
Below is a summary of my account progress at the moment,
Although, my USDJPY and AUDUSD are still in the red.
My USDZAR fetched me a profit of $15.12
And i’m so happy.
By the way, i forgot to mention, The Meg movie was quite good. The actors and actress were great. The plot were faily predictable. The screenplay were great as well, quite smooth all the way to the end of the show. I highly recommend it.
On hindsight, although my USDZAR hit target, i never really gave a thought to how much i could lose if my USDZAR were to hit my buy stops order.
15.20001 - 14.64000 = 0.56001 which translate to 5600pips.
488.5pips —> $3.33
5600pips —> (5600/488.5) x $3.33 = $38.17 per 0.001lot USDZAR
But i had 2 USDZAR position. Thus, if i were to hit my buy stops order, i would have incurred and floating loss of $38.17 x 2 = $76.34, and that would be a dent of (76.34/500)= 15.2% in my capital account. That is unacceptable to me. Next time round i will be entering 1 position of USDZAR instead.
I’m starting to see what i’m really doing when i record all this stuff here in babypips.
My USDZAR shorts was opened at around 14.64000 and the drawdown reached 14.75000. That translates to 14.75000 - 14.64000 = 0.11000 (1,100pips) .
488.5pips —> $3.33
1100pips —> (1100/488.5) x $3.33 = $7.49
I had a drawdown of $7.49 per USDZAR position of 0.001lot
2 position would be 2 x $7.49 = $14.98
My profits from the 2 USDZAR trade was $15.12
Henceforth, my drawdown risk (14.98) : rewards (15.12)
workout to be 0.99 : 1.00 ratio. That was a trade went well.
My floating loss risk (76.34) : rewards (15.12)
workout to be 5.04 : 1. I really wonder if that would be reasonable. I think it boils down to my winrate. My winrate would need to be about 80% to break even.
Trade journal really helps me to self-reflect. Provided i have to be really honest to myself about what i’m doing.
I was so busy posting and doing self reflection, guess what? I just realised i forgot to set protective stops for my AUDUSD position.
I have just placed a Sell stop order at 0.72599. which is about 50pips away from my entry position of 0.73100. I have 2 Long AUDUSD position. Hence, risk is 2x50x$0.10 =$10 floating loss risk.
It is getting late now, 1907HR SGT, my wife just phoned me to buy chicken rice for her supper. Got to go now. Happy trading everyone. Who say trading is easy? My mind is preoccupied almost all the time.