January was great month! The strategy is going very well. At this point it has nothing to do with the dollars and everything to do with the goal of getting a proven strategy that can make 2-3% per month, month after month after month. And I'm not talking a strategy that works when 5 or 10 technical indicators line up. A strategy that can stand the test of time.
If I can make 2-3% per month in a consistent basis I will become financially rich! I think a lot of traders think they need to make 20%, 30%, 50% or more a month to make it big. Well I'm here to tell you that you won't make 30% a month, consistently. You have to risk too much to make it work. Yes, I think it can be done for a 1-2 years but then it will collapse. Besides, you don't need to make those returns and have that level of risk to make it big.
Back to the monthly review...I finished up January with a profit of +4.15%. So, last month was +3.9% for this strategy, and this month at 4.15%. A good trend has been started. On January 5th I did sustain my biggest draw-down and loss to date. I closed all my trades on the 5th that resulted in a 6+ % loss. This is one reason that my trade size will be cut in half from the last two months. It will be interesting to see how that will effect the returns. My guess going into next month is that it will be closer to the 2-3% and might be difficult to see those 4,5,6% gains.
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