Boy if this isn't just an awful looking trade so far! The entry got triggered and the trade was profitable for less than 5 minutes. It came within 4 pips of being stopped out. It headed back towards profitability, and has now gone back towards getting stopped out yet again. Will it survive? Stay tuned...
Current account equity: $108.73
Hi Archiphage,
ReplyDeleteI discovered your blog a couple of days ago and was very pleased to find it - keeping the systematic currency trading flame alive.
5% risk per trade is very brave but I'm sure you've backtested it to your satisfaction. You mention reducing position size for trades against the trend - is this a hard and fast rule that you use?
I've experimented with testing a multitude of position sizing strategies and can get great results by increasing the position size proportionally depending on factors such as distance above an MA or a short term ATR vs a longer term ATR - this can give great results. However I am reluctant to go with unlimited risk so have been experimenting with reducing the position size based on such factors.
Good Luck and keep the Blog (and trading) going!
Best Wishes,
Timek
Hey thanks! Yes, that is a hard and fast rule. I simply track which way the 21 and 50 day EMAs are crossed, and cut the sizes in half for the trades that are counter-trend. I find that the counter-trend trades are less likely to work out. I'm sure I could find a more optimal position-sizing algorithm if I put some time into it... but time is at a premium just now. Take care and Happy Trading!
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