Strategy Update

I have a couple minor changes to the strategy in the previous post. First of all the biggest issue with my current strategy is the size of my losses. They are few and far between but they can be very big. As a result of limiting my risk, after all my blog is named Keel Risk, I have eliminated the last position size in my geometric sizing. Now my sizing is 1 unit, 1 unit, and 2 units. Again, my unit size is 40% of my account balance. Although, I think my unit size for February will be reduced to 20% of my account size. Again, to reduce risk.

I just finished up trading for January. This wraps up the best 2 months I have had trading ever. I have a strategy that is performing phenomenally. It has held up against some big changes in the EUR/USD and taken some losses and still performed well.

The one concern in the strategy is how it performs when the pair is trading in an extended trading range. I tend to think it will do ok but only time will tell. At this point, the key to this strategy are as follows:

• Trade with the daily trend
• Trade against the 5 minute trend...in other words when it is going UP, sell
• Trade with small gearing, and then go smaller, and then smaller again!
• No Stops
• Know when to get out of a trade
• Average in your trades, yes average your losers

At this point, I'm thinking of the best approach to increase my account balance. Do I start adding a $1000 a month, or just drop in $10,000 and then add $1000 a month. Bottom line I need to get my balance up in order to make this effort worth the time. I realize it might take a couple years before that happens.