I haven’t been posting much this week. In fact, I did not make any futures trade this week. I have been actively trading Forex, and finalizing my risk-plan (Risk Management is a big word to me, I don’t like this term). It is basically a spreadsheet which controls my position sizing for every trade. Since I am deploying SAR (Stop and Reverse) strategies, I need to be extra careful to avoid burning my small account.
I will see if I am able to extract a template of my risk plan and share it here later.
I made a number Forex trades this week, but I am not going to post every single trade here. Well, to surprise you, I am not trading Forex using any technical analysis stuff, and not even chart. So, it will be nonsense to post my Forex trades here, a weekly review makes more sense.
Basically, here is my trading plan of Forex trading:
- Get Long/Short signal from my system (I am running both Weekly and Daily systems)
- Calculate position size by using risk plan. I am risking 3% per trade, and using compounding effect. So, I will increase my position size when my account grows, reduce position size when experiencing draw down.
- Put in stop loss order and take profit order simultaneously when establishing position. And put in reverse order with appropriate position size according to risk-plan.
- No trailing stop. Exit position by Take Profit order/ Stop loss order or by cut off time (part of system definition).
- No limit of numbers of trade to be taken, since position size is taken care.
That’s it. That’s my Forex trading plan. I am trading live accounts now, of course, relatively small accounts. I am having two separate accounts with same trading capital each for weekly and daily systems. I would like to see how long do I need to double my capital, and compare performance of the two systems.
Now things are almost settled, I will start executing Forex trades and focus on Futures trading again.
May the pips be with you.
Again, real man trades futures, his son trades Forex, I am trading both, for my wife 🙂