Digital Diatribes

A presentation of data on climate and other stuff

Forex Account Update as of 4/30/2012 [Through 11/30/2010]

Posted by The Diatribe Guy on May 2, 2012

Continuing my account updating:

OUTSTANDING ORDERS as of End of Day 10/31/2010 settled by End of Day 11/30/2010
Date of entry / Type of Entry / Lot size / Currency Pair / Entry Price / Date of Settlement / Exit Price / Net Profit
None.

*Net profit means profit after consideration of swap fees (these can be negative or positive)

New Orders since End of Day 10/31/2010, settled by end of day 11/30/2010
Date of entry / Type of Entry / Lot size / Currency Pair / Entry Price / Date of Settlement / Exit Price / Net Profit
11/04/2010 BUY 0.02 xauusd 1348.89 11/04/2010 1377.20 +56.62
11/10/2010 BUY 0.02 xauusd 1397.14 11/11/2010 1405.90 +11.98
11/15/2010 BUY 0.01 xauusd 1368.29 11/24/2010 1375.75 +7.45
11/15/2010 BUY 0.01 xauusd 1368.29 11/24/2010 1375.70 +7.40
11/16/2010 BUY 0.02 xauusd 1361.09 11/24/2010 1375.75 +29.25
11/17/2010 BUY 0.02 xauusd 1337.08 11/18/2010 1349.10 +24.02
11/24/2010 BUY 0.02 xauusd 1373.36 11/30/2010 1383.20 +19.63
11/26/2010 BUY 0.02 xauusd 1363.94 11/29/2010 1369.08 +10.27

New Orders Since end of day 10/31/2010, still outstanding as of end of day 11/30/2010
Date of entry / Type of entry / Currency Pair / Lot size / Entry price
11/12/2010 BUY 0.02 xauusd 1389.74

Carried Orders Since before end of day 10/31/2010, still outstanding as of end of day 11/30/2010
Date of entry / Type of entry / Currency Pair / Lot size / Entry price
None.

Equity Balance @ 11/30/2010: $3,182.84
Current Month Return: (not recorded)
Initial 10/31/2009 balance: $2,360.46
Current Yield since inception: +34.84%
Annualized Return: +31.81%
Average monthly return: +2.326%

Recorded the following notes on the tweaks made since dumping the positions in October:

Kind of changed this system up, by making my entry points more time-dependent than price-dependent. Also, just going long after taking a bath on shorts, but stepping up the size just a bit after taking a closer look at back-testing and risk tolerance.

Had I simpoly stuck with my original buy-only strategy and not played the shorts, I’d be up well over 100%. It is what it is. I made the call at some point to liquidate those positions at a loss because I realized I have much higher risk tolerance for losing positions on long positions than short ones. I believe that I will ultimately see gains on long positions whereas I wasn’t nearly as confident that the same is true on shorts. Should have probably realized that earlier, but I was sticking to my thoughts that I’d see a large retrace down. As the world continues to implode, I’m less comfortable that the old rules apply. Which probably means they do and someone else will make money shorting this market, but I am just not comfortable with the assumption at this point.

So, anyway, here’s the parts of the roller-coaster ride of the trading:

11/1/2009 – 7/31/2010: +89.71%
8/1/2010 – 10/17/2010 (the date at which point I ceased the short strategy and liquidated positions): -34.35%
10/18/2010 – 11/30/2010: +8.27%

What I’m doing now is, rather than buy in at a particular drop in price, I have a few rules in place where I only check in at one or two particular times each day and compare that to the price a day earlier. If price has dropped by a certain percentage I buy. If not, I don’t. Then I just wait until the next check-in time. Once I buy, I wait 24 hours and if it’s up a certain percentage I close. If not, I hold. I do have a target price where I will sell on a rapid spike upward, but that’s the one exception to the rule.

It basically accomplishes most of what I tried to accomplish before, except it reduces the need to monitor things even more. My total positions are reduced, so to compensate I adjusted my position size up a bit so it puts me at the same general risk level as before.

The ups and downs are part of trading, and you deal with it and move on. THe goal is the make money in the long-term and not dwell on the losses other than try to learn from them. Many people don’t like the risk and the swings that can occur. I probably wouldn’t either on funds that I’m counting on for retirement or savings. This is on money I can afford to experiment with.

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