Hello dear followers and subscribers. I missed writing about FOREX and I know that last time …. was a long time ago. Well, I will start saying that a lot of things happened and I think we are on the good track (or at least I am seeing this way, it’s up to you guys).
The last three posts in this category were about Backtesting strategies, EA robots and the last status update (which was around this year in May).
To make it easier to provide a follow up, we will take it one by one and discuss the progress done for each one of these articles.
Backtesting my strategy
The post (you can find it here) was an insecurity (cry for help) to the fact that I didn’t trust my strategy anymore so I tried to improve my trading, by backtesting, by practice and by analyzing the results. After one and a half months of trial and error I was not that happy with the results.
The principle was working awesome and I had the chance to learn more about myself (one of these things, even after so many years of failing in FOREX I still don’t have the patience to see the trade go through).
Re-reading the article I see that I promised you to come back with a follow up of these results. Well….I was too ashamed to post them (it was that bad).
I decided to go back to school. I ‘ve started reading babypips site again but it wasn’t enough so the next thing was to start watching FOREX courses again. Actually I followed four different courses, going back to basics and learning new strategies. I would like to mention that the strategies taught by the mentors are not always the best or don’t work for everybody. I even failed following some of them.
At the moment, I am mixing two of them, the parts I found the most interesting, and made my own rules to follow. I am trading these rules on my real account and trying to backtest them when I have the time( which is not too much).
A big disclaimer here: I do follow the rules that were taught in the curse, even if I modified them a bit, so the credit is not mine, is to those guys that spend so much time and effort to set them up for the first time.
EA robots – is there a future to them
The conclusion of the article (found here) is that the EA robots will blow your account if let unsupervised. After spending so much time at that moment, to configure a robot and test it (after spending time to choose from 5 different ones), I managed to have some nice profits in a short time, followed up by two months of blowing the account.
In the article it is stated that I will start with a 300USD account (which I did) but managed to make multiple deposits and grow it to 1.2K USD . Well, that money is on the drain now as the robot wasn’t too shy to lose that much, in a short time.
It was because of the traded period, the currency, but mostly because I left it alone, without setting some rules to make him stop (like a normal S.L. or deciding that after 1 week the trade has to be closed). All of this because I didn’t want to lose.
Getting back to the drawing board, I managed to optimize the robot more, setting also some mental rules for me (closing the trade if it went bad more than 1 week, don’t go over 3 opened trades in the same direction, reduce the trading lots when I am not around to take a look). At the moment I have some good profits on my account (as I paired it with my main account, the one in trouble), which I will present a bit later.
As a conclusion, they are worth it and I can see a future trading alongside this robot. I don’t exclude the fact that I will have to buy/invest/create one or more to help me.
Disclaimer: If you decide to use robots, please take your time to study how it works and be prepared to have the account blown.
Our FOREX account
Last time, it was necessary to create a short term plan (article found here), to get us out of trouble with the account. The outcome was bad then, even if I didn’t realize it at that moment.
Except that we were deviated from the plan (we had to finish the year with around 2.7k USD in the account) we were down -750USD in open trades.
At this moment we still have open positions with a value of -270USD and an account value of 1200USD. We didn’t deposit as much as promised (560USD-700USD) but this was mainly because we had the FOREX robot to take care of (it was a big investment there). The amount we invested was: 386USD (even lower than the minimum amount I needed)
By reading the previous phrase I wrote and reading what I have wrote back in May, we didn’t exactly follow that plan (ha….and I call myself a trader). But let’s see what we can cross out the list.
- Reduce the floating positions
Make enough profit to close the open positions (one buy one sell): It happened, mostly in the last two months Make enough profit to close just a position that is opposed to the current trend: By opening a twice bigger open position in the opposite direction, I managed to close some trades for a small loss.
- Use the regular deposit to close a position: It kind of didn’t happen because the regular deposits weren’t that regular.
- If the market moves in a direction with a big movement, put stop losses on the positions in that direction and profit from the correction to reduce the floating minus. I tried it and profit a bit, but not enough to count.
- I am more than happy with small gains and small losses if it means I can close the open positions in my advantage: I think I was able to close on or two Buy positions in this situation, but again, not enough to count.
- Grow the account by funding and trading
The current condition permits me to have just one open position at a time, but I can target at least 1% return for each trade. : By closing open positions and freeing margin I have now an account that can open multiple positions. The next deposit will free enough margin to add a second trade (and hopefully I will start looking at other parities): It didn’t, but the only parties i focused were EURUSD and GBPUSD (mostly) I found a way to practice my strategies during this ‘lock-down’. With practice comes experience, so I hope that I will make every trade worth it, in the near future: I changed the strategy completely (did that went well?)
- The monthly deposits will definitely help: They didn’t as we didn’t deposit money each month.
- I am decided to invest a bigger sum at the end of the year to be as close as possible to the target: I won’t invest a bigger sum, as I used a lot of funds for medical reasons and EA robot.
Now that we saw the progress on FOREX overview, let’s see what improvements we have done.
The first thing I want to say is that I connected my trading account to MyFxbook site. For the ones that don’t know what is the site about, it is a public portfolio publisher ( which verifies the account of traders), from where you can find a system to trade upon it, to follow it and has a big community that provides robots, indicators and so many more.
Connecting the portfolio to this site and publishing means I am out in the open, you have a full overview on my trading style, my losses, my positions (and you can see deep into my heart, lol).
So the link to the portfolio is the following: FIINRO_system (http://www.myfxbook.com/members/fiinro/fiinro-system/7482774).
I know that it looks messy at the first look, but I will explain some of the information I gather from this. Also another function I will try to add on the page, is a widget on the FOREX page with real life account information.
We can see in the table, the current account value, the Equity (account value – open positions), Highest account value, total profit on the account (since 01.08.2019), total deposits (from 01.02.2018) and withdrawals. As it can be seen, the profit at the moment is in red, so beside turning it to green we will have to reach a certain sum to be in sync with our plan.
The balance chart has two components, the balance (so the value of the account at certain dates) and the equity. As mentioned in the previous articles, the total open positions in Feb- May were around -800 – 750 USD. We can see this number reflected in the equity and the effort to reduce it. The total opened positions today are of –270USD. (Account Value of 1257.03 – Equity of 987.41 = 269.62 ).
The public portfolio has multiple pieces of information that can be accessed including:
- Opened Positions
- Profit for Periods and Goals (for periods)
- Advanced Statistics (Winning ratio, Hourly profitable trades, Duration of trades)
- Monthly Gain (and if clicked it will give a better overview on the month parities)
- Even a browser where you can look on the opened and closed positions.
I could talk more of this platform, but unfortunately this article is long enough and I will have to split it in two parts soon.
Before saying goodbyes, I would like to say thanks to two vivid readers (A and C), who were always encouraged me with investments (from tips to morale). Thank you! As for my wife, she was the one who encouraged me to start writing and I owe her everything!
Thanks for reading this article! See you soon and look for the widget!
Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.