28% RATE OF RETURN - IS THIS ENOUGH OF A MONTHLY RATE OF RETURN FOR FOREX TRADING?
This Rate of Return was earned during the Trading Competition with Dukascopy Bank for the month of December, 2017. It reflected the Monthly Targets I have set for my Live Forex Account using my new Aggressive Swing Trading Strategy that targets High Probability Trades each week. With only a few of these types of trades needed each month using Reliable Candlestick Signals and Consolidation Setups on the Daily and 4 Hour Charts, I think this type of Monthly Return is possible and more than enough to provide large gains from the Forex Market in a very short time.
VIDEO ANALYSIS OF TRADING PERFORMANCE
The table below shows the summary of the monthly outcome in the competition. For the period, a 28% Rate of Return was earned with a Maximum Drawdown of just 5%.
SUMMARY OF PERFORMANCE
This Return was in sync with monthly target that I have set for my personal trading on my Live Account.
If this type of Return is targeted each month, significant gains can be achieved from this Trillion Dollar Market in just a few months…
The Aggressive Swing Trading Strategy I use is summarized below. Powerful and accurate Candlestick Signals and Consolidation Setups are used to Swing Trade the Daily and 4 Hour Charts each week. This is based on the Trading Theories and Strategies that I discovered actually control the Forex.
As you heard in the video above, there are times when trades that offer less than 50 Pips or more than 70 Pips are also targeted, so long as the setup is strong enough to justify taking the risk. All trades are held for a maximum of 24 Hours since this was discovered to be the time needed for the High Probability Trades to hit their Pip Targets. It also imposes a level of discipline that prevents being greedy.
MONTHLY STATISTICS
As you can see from the table above, the performance in the competition reflected the main aspects and goals of my Methodology…
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Only a Few Trades Needed for Strong Returns
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Fast Turnover/Overnight Results
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Average Drawdowns of just 3.96%
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No Need to Target Thousand of Pips Each Month
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No Need to Trade this Market Everday
SUMMARY OF TRADES
As you can see from the video, all of these trades were based on Consolidation Setups that were either in the process of being formed or were already formed. This means the knowledge of the Signals and Patterns that control these setups is essential to taking advantage of them each week, such as with this False Breakout Reversal on my Live Account…
IDENTIFYING CONSOLIDATION SETUPS
The first step is knowing how to identify these setups. There are certain patterns that tell us when the market is forming these setups. Once we spot them, then next challenge is to know how to accurately draw them. However, this is easier said than done because of the many challenges involved in drawing and trading them such as…
Should you draw the Support & Resistance Lines across the Body or the Wicks of the Candles? or Both?
Which Consolidations are too risky to trade?
Which Candlestick Signals are reliable vs risky ones that lead to losses?
Which Breakout Candlestick Signals are risky and usually lead to False Breakout Reversals back inside of the Consolidation?
Should you always trade to the Resistance/Support Boundary or exit just ahead of these areas?
Where are the safest Stop Loss Areas and does it depend on the type of Trends/Candles within the Consolidation?
These are just a handful of the issues that we face when trying to master these popular setups that appear each week. However, if you have the solutions to these questions and include them as part of your trading, consistent gains from them can be yours.
Duane
DRFXTRADING