The Artist FX Trading System

[The Artist]

Long EUR/USD @ 4228.

First trade of the month, yey! I have to admit I was getting a bit bored and I have no idea what's been going on in the markets so I will finish the week with some reading, better to start work late than never.

Closed @ 4238 for +10. Meager, but a W is a W.

 

[The Artist]

Thanks for that Jacky...

Back to business, long EUR/GBP @ 8928.

 

[The Artist]

Thanks for that Jacky...

Back to business, long EUR/GBP @ 8928.

Closed @ 9028 for +100. The TP was trigerred this morning but I'm traveling around so could not really update. In fact, although the monthly recap is due today I will post it next week when I am back in the UK.
MTD +110 so nothing stellar but still more than enough to enjoy the summer and also it's another green month (that's 4 out of 4 since I started to post and 5 out of 6 for 2011). With only 2 trades made it could have been a different story.

 

[The Artist]

June recap

17/06 - 20/06 EURUSD +14228 -14238 => +10
27/06 - 30/06 EURGBP +8928 -9028 => +100

June => +110
Since March 16th => +557

Bring on July!

 

[The Artist]

Long EUR/GBP @ 8825

 

[The Artist]

Long EUR/GBP @ 8825

No luck there, closed @ 8785 for -40 and position reversed @ 8774.

 

[The Artist]

No luck there, closed @ 8785 for -40 and position reversed @ 8774.

That was quick.. just got brutally stopped by that spike up, with 5pip slippage on top of it, thank you Moodys!!! This 8760-8840 range is killing me I hadn't bled that much cash in a while. That's -85 MTD, not pretty, but well I will turn that around eventually.

 

[The Artist]

Back at it with short @ 8777.

 

[The Artist]

Back at it with short @ 8777.

Exited that earlier @ 8762 for +15, making it MTD -70.

Very tight trendless markets are kryptonite for my system and EUR/GBP illustrated that over the past week. This is why it is so important to be able to make multiples of your average losing month in order to get protected against adverse runs.
Speaking of which, the theory of runs is very helpful to assess risk of ruin and I believe it is useful to know all about the expected behaviour of your system to actually handle outlying occurrences. So for instance, I know that I can expect a 45% to 50% win rate, as well as a run of up to 4 losing trades. Therefore, when I designed the system's position management rules, I could use that information to preserve my capital in the event things go bad for longer than anticipated. That gives me peace of mind now when I trade because I don't have to second-guess my system just because I hit a rough patch. This is obviously easier for traders like me who see the market as a Markov process and can use statistical analysis as a result.
At the end of the day, I publish all my trades out here to show that it is possible for traders with unorthodox methods (fixed S/L and T/P, only 3 markets, 5 to 6 trades a month on average, no reliance whatsoever on news flow) to make money. I strongly believe that some people's skills are not suited to watching the market 9hrs straight with an obligation to grind 50pips out of it everyday, yet the majority of those who get into prop trading behave like this and subsequently get blown away because they cannot handle it. I certainly am not at my best scalping cause it does my head in, so I tried to find a way to trade successfully according to my personal traits. Hopefully the green will continue to supercede the red month in month out.