Risk Management and Capital Preservation
- I place a Stop Loss at the time the trade is placed or shortly after. Guaranteed.
- I risk less than 1% per trade and have placed only a handful of trades with 2% risk. I let compounding do the heavy lifting.
- I keep the total exposure of all trades at any given time at 5% or less, so you can rest easy and sleep at night.
- I trade high risk events well, such as FMOC, jobs reports, and other major market events. Sometimes I trade them well by avoiding them entirely.
- Because of this, trading will not blow up nor have massive, compounding draw downs. Rest assured, capital preservation before capital appreciation.
Advantages to my system
- I don't Grid trade or use Martingale.
- I review the economic calendar at least once a day.
- I review my trades from the previous week over the weekend.
- I typically don't hold trades over the weekend.
- I am trading with nearly $4,000 USD, unlike many other providers trading your capital with just a few hundred of their own.
- I am easy to reach on on here if there are any other questions you have.
- I run my account like I am running a business, I stick to my rules and follow my business plan.
- System is FIFO compliant and does not hedge trades.
First subscribers get lowest pricing available. After that it will go up. Thank you!
Additional details can be found at http://www.myfxbook. com/members/silvox/fxcm-usa/1795221 (remove the space)
If you are trading with less than half of my capital your trades may scale differently than mine. If I have $4,000 and have 2 orders each at .02 lots totaling 1% risk, and you have $2,000 then the orders should scale to .01 each with the same risk of 1%. However, if you have $1,000 the orders will still be at .01 lots, but your risk will be 2% because your capital is smaller. Because of this, I would recommend at least $2,000 with my system.
My goals for now are to keep risk low while looking for profitable set ups and then executing them. Medium term is to trade well, gather subscribers and grow their accounts, and go from there. My wife as well as myself are currently employed and I would love for her to be a stay at home mom when kids come in about 2 years. While I am working to advance my career, subscriptions through my signal would be another source of income for us as well as the people that subscribe.
MFE and MAE Distribution Point Graphs
Maximum profit (MFE) and maximum loss (MAE) values are recorded for each open order during its lifetime. These parameters additionally characterize each closed order using the values of the maximum unrealized potential and maximum permitted risk. MFE/Profit and MAE/Profit distribution graphs display each order as a point with received profit/loss value plotted along the X-axis, while maximum displayed values of potential profit (MFE) and potential loss (MAE) are plotted along the Y-axis.
Place your cursor over parameters/graph captions to see the best and worst trading series. Find out more about MAE and MFE distributions in the article Mathematics in Trading: How to Estimate Trade Results.
The average slippage based on execution statistics on real accounts of various brokers is specified in pips. It depends on the difference between the provider's quotes from "FXCM-USDReal09" and the subscriber's quotes, as well as on order execution delays. Lower values mean better quality of copying.
|0.00 × 17|
|0.00 × 1|
|0.00 × 6|
|0.00 × 2|
|0.00 × 1|
|0.00 × 1|
|0.00 × 4|
|0.00 × 9|
|0.00 × 1|
|0.00 × 18|
|0.00 × 13|
|0.00 × 1|
|0.13 × 56|
|0.18 × 62|
|0.20 × 168|
|0.28 × 36|
|0.48 × 99|
|0.51 × 51|
|0.57 × 37|
|0.58 × 12|
|0.60 × 5|
|0.68 × 19|
|0.79 × 29|
|0.80 × 20|
|1.00 × 20|
I recently found out some news about FXCM that made me decide to close the trades that I have with them. When I find another reputable broker I will begin trading again.
I have done some analysis and reflection this evening and have the following report for you.
If you would like to follow along, please go to https://www.myfxbook. com/portfolio/fxcm-usa/1795221 (remove the space) and click on 'Custom Analysis' and set it to just the month of January 2017. Here is a breakdown of the following data:
Total trades are 134
Trades won 46 (34%)
Trades Lost 88 (66%)
Average winner 45.62 pips/$17.61
Average loss -26.24/$13.98
With this information I did some math.
My winners are still greater than losers as far as pips and dollar amounts so I feel good about that, and typically my win ratio is close to 50%, but this month it's less than that. But what if I had traded less or set a hard limit per day of percentage or dollar amount?
So the biggest days that I lost money were on the 11th, 17th and 18th (11 and 18th I lost the most). So it has been a few days that caused the most damage.
These numbers may not be 100% spot on, but here we go.
From the 1st to the 10th I grown the account 8.05%
On the 11-12th I lost 9.34%, basically given back the gains for the month so far. Had I set a daily risk limit of 2% that would be 7% less (so my account would be 6%+)
On the 17-18th I lost 3%. Had I set a daily risk limit of 2% that would be 1% less (so my account would be 4%+)
On the 18-19th I lost 6.5%. Had I set a daily risk limit of 2% that would be 4.5% less (account 2%+)
While most orders 1% risk per trade, I have been getting into trades quickly after a stop loss takes me and getting in at a better overall price. But the trade continues in the direction against my trade and closes it out again for a larger overall drawdown. Had I set a daily risk limit of 2%, the account would be positive for the month and the maximum drawdown not been increased which saddens me greatly. Going forward, there will be a 2% risk limit per day.
Thank you for your continued subscription to my signal.
In any trading system there are streaks of winners and streaks of losers and I remain confident in my ability despite feeling pretty bad about how the week ended up. While the week started off great, we ended up just below where we started. I have taken a personal inventory of this week especially and the month so far and for a while I will be trading with less overall risk and size instead of being more aggressive like some trading systems have you do after a loss. This will continue until my account gets back up to it's high watermark point of just above 70% growth.
I was also thinking this week about draw downs on accounts, specifically asking myself if I would rather have a large gain and large draw down or nothing gained nor lost. I think that I would rather have nothing gained nor lost because at least the capital was managed properly, whereas if you gained a large amount and then lost it you still lost it. The only advantage - if you learn from it - of a loss is the learning that can take place and what you can do and change going forward. I love the personal growth and development that happens during losers, but they are sharp and stressful.
Forex can be a tricky mistress. On Thursday USD positive news came out, but the USD tanked pretty bad across the board. The same type of thing happened Friday - USD negative news came out and the USD went up. Both times you would think the opposite would happen, good NFP comes out and the USD should go up. Strange, but it does happen. I was able to successfully navigate both days, risking little and protecting our accounts. We are about break even for the month and as I type this, we have 2% positive equity on the week. Depending on what price does, I may decide to hold onto these positions over the weekend.
I had this quotation come across to me today "The impatient give their money to the patient". I reflect on it and it rings true in many things in life, especially in trading. People trying to get rich quick (impatient) are losing their money (over the long term) to the people that are patient. And I am planning on continuing to be very patient.
Thank you to all my subscribers! It is my pleasure to be providing my signal to you. Historically, the markets are thinner around the Christmas holiday and New Years and I haven't ever performed well during that time, so I will be not making any more trades for the rest of the year. Instead, I will be enjoying time with my friends and family and yes, I will spend some time reflecting on the trades that I have made and looking for ways that I can improve myself and my trading. Again, thank you for your subscription to my signal and your confidence. Have a happy holiday and I look forward to much growth in 2017 together.