Trade Review 14/15 Sept 2018 Friday
My 0.015 lot Short EURJPY at 130.633, hit target at price level 130.284 (+34.9pips), Maximum drawdown reached 131.110(-47.7pips). Risk : Reward ratio 1.34 : 1 , I have highlighted the average positions level with blue horizontal line on the chart above.
I have one outstanding 0.015 lot EURJPY merged at 129.460, tagets 129.450 (break even level), Stop loss 131.101
Just converted 0.015 EURJPY stop loss at 131.101 to buy stop order at 131.101 .
Just split the buy stop order into 2.
One 0.007 lot EURJPY at 130.801
One 0.008 lot EURJPY at 131.101
(Just a note : my over the weekend leverage reduce from 1 : 200 to 1 : 60 )
Drawdown Risk versus Reward ratio
My average RR ratio for this week is 1 : 1.62
1st Week RR, 1 : 1.22
2nd Week RR, 1 : 1.73
3rd Week RR , 2.95 : 1
4th Week RR, 1 : 1.62
(1+1+2.95+1)/4 = 1.48
(1.22 + 1.73 + 1+1.62) = 1.39
My average RR ratio for 4 weeks is 1.48 : 1.39 (1.06 : 1)
My profit factor for this week is 1.59 (I fail to achieve 2.0, bad trading performance again )
(2.1 + 2.9 +1.28 +1.59) / 4 = 1.96
My average profit factor for 4 weeks is 1.96
My winrate per opened position and closed by day end were ( 16/20 ) x 100 = 80% . An opened position were closed by end of day and consider as a single trade. Position that rollovered to the next day were consider as a new trade. Lot size were disregarded for each closed trade. Each closed trade of a merged position from multiple smaller lot size trade were considered as a single entity for easy calculation.
1st week winrate : 67.5%
2nd week winrate : 85.2%
3rd week winrate : 48%
4th week winrate : 80%
4 weeks average winrate = (67.5 + 85.2 + 48 + 80) / 4 = 70.18%
My Maximum drawdown to date is about 22.1%, which occurred with my ongoing Short EURJPY trade.
At present, i have an ongoing positional trade. A short EURJPY opened at 129.460, Maximum drawdown reached 131.105 . Position was hedged from 130.100 to 130.570, effective maximum drawdown was
[ -129.460 + 131.105 = - 164.5 pips,
130.570 - 130.100 = + 47 pips,
-164.5 + 46 = - 117.5 pips ]
Value of 117.5 pips ≈ (117.7/7.3) x $9.78 = $157.41
( 157.41 / 712.25 ) x 100% = 22.1%
Calculations were base of Wednesday highest current balance $712.25
New Lesson learned this week.
On Monday, i missed the boat by an inch. I had a GBPUSD trade that would have hit the jackpot. If i had not closed it just before the US session open. I need to develop more faith with my trend determination analysis. I’m one that is equipped with knowledge of hedging and averaging, thus i should not have feared the drawdown.
In early Thursday, my Short EURJPY was loosely entered. Even though technically, i knew i shorted somewhat early, i was adamant to see it through. I was overconfident of being able to handle the situation, if the shit hits the fan. It was unnecessary imprudent bravado. I need to develop patience for more bull’s eye Entry point.
Furthermore, there was a lack of foresight and precontrived plan for my Short EURJPY trade. The initial position sizing was too big. Use of leverage hit a high of 40%. Consequently, exorbitant tension mounted during my Thursday and Friday’s trading. It could have been prevented, if only i had curbed my position sizing intemperance.
Artist at work
Home cooked dinner is the best!
Dinner by the harbour