Fx hybrid trading active Phase 1 from Jan 21-May 15, 2019
This is a report on the latest hybrid trading conducted between Jan 21 and May 15 when Brexit volatility triggered momentum, volatility , trends, reversal , choppy trading, consolidation and rotation.
It is a pure price action play with no filters applied.
Entry logic was based on currency strength driving pure random trading unguided.
Focus was on managing trades rather than predicting the direction of the trades.
It is a classical demonstration of how management of positions, margin and risks on a platform that permits hedging using single margin can baby-sit drawdown comfortably while continuing with the pips churning machine.
In this case, the currency strength EA was shooting directionless trades. If momentum was pushing trend, proft gain was quick. If there was choppy trading, it was contributing to drawdown.
Lack of planning on margin level percentage pushed trades to occupy 18 maximum positions and cripped trading and also triggered broker's stopout levels. After 50 days of trading , machine stopped churning pips while preserving scant margin level% to shake off drawdown and steer the trades back to Balance Line after next 32 days. Total duration was 82 days. Productive 50 days .
After the account stop-out levels were triggered, the broker deactivated the margin line and did not allow any new trades to be conducted. However, the open trades were allowed either to recover or die.
On the whole, learned a lot about the sheer power of random price action trading without using any kind of filters. It was a good lesson on managing margins, lots, hedging, drawdown, counting costs of trading because of 32 idle days pushing up the borrowing interest costs for leverage facility.
Above all the power of patience and seeing drawdown moving from one extreme end to another one like a pendulam.
How many trades were won?
Won 552 out of 602 trades
92% win rate
8% loss rate
Daily Pips gain average: 147 based on active trading of 50 days
Profit Factor: 2.74
Gross profit exceeded by 274% gross loss
Average Win: 15.79 pips
Average Loss: 27.07 pips
Lots traded: 127.92 for 50 days or 2.56 lots per day
Average frequency of trades: 12 trades a day
Average Trade length: 2 days
Commissions plus Interest fee: 30% of gains made because of trades remaining locked in drawdown .
Goal of Yearly target of making $50,000 profit from a capital of $20,000: 19% done in 82 days