A mild hangover follows (mainly due to the GBP/NZD loss) after reaching a $40,000 account growth celebration the week before.
A total of 22 (!) setups were closed in just 5 trading days, using the ecs.SWAT and ecs.CAMMACD trading methods. There were more losses than wins but, despite that, we managed to pull out a small profit of just less than 1% due to large wins on the AUD/NZD longs.
That said, wins and losses are part of trading and ecsLIVE members will be able to follow closely how we plan to stay into positive territory in the rest of the month.
The trades of the week were the AUD/NZD and GBP/AUD as it scored 79 pips total with a slightly higher risk per trade. The AUD/NZD was a clear winner with 126 pips wit 2.5 % risk. A specific money management strategy that includes low-risk trading improves standard risk money management by using a controlled martingale strategy. The initial risk of 0.5 % is only raised if there is a loss, but it never exceeds 3 % per trade.
The start of the week was very successful with the AUD?NZD trades closing with a win. However, the end of the week saw the GBP/NZD losses as the price retraced by a considerable extent. The NFP week is usually rangy, so we expect this week to be better in terms of CAMMACD performance.
How many times have you heard “don’t quit your day job, work, work and work”. Until you die, right? Well, it doesn’t have to go that way. You want to be independent, be yourself, and live your life. There is a subtle difference between trading and other jobs.
For the majority of the jobs, working more means being more productive. Working more could make you become an “employee of the month”, and your boss thinks more of you. Or you might get a salary bonus if you had extra hours at work. However, in trading, the more you work, the less you make. You should never fall into the trap of overtrading. Too much trading costs money raises your tax bill and can reinforce bad habits. No matter how happy you are because you have made a winning streak, stay away from trading too much. Try to balance trades by taking only signals from a system that are in-line with the general trend and which have a lot of room until the next support or resistance.
At the beginning of last week, the SWAT results had managed to show a nice winning streak over the last couple of weeks. Here were the stats:
Last week, our with the trend setups failed to follow through and unfortunately our EUR/NZD, GBP/NZD and GBP/AUD long setups closed for partial losses.
We did have nice wins on the USD/JPY long for +65 pips and GBP/USD long for +68 pips, but it was not enough to compensate the losing setups. The total of the week was -2.71. This means with 2% risk per setup a draw-down of -5.42%. Current total of last few weeks is 27.88% (33.3-5.42).
This week we hope to continue our uptrend of the weeks before.
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Cheers and safe trading,
Nenad and Chris