Dec 2008: 3.90%
Jan 2009: 4.15%
Feb 2009: 3.11%
Last month I was contemplating reducing my trading size. Although currently trading very very small, I ran some analysis with the smaller trading size and decided against changing anything. So it was business as usual and have not made any changes.
Here are some thoughts so far about the strategy that I'm using:
- Very consistent results. Kind of surprising to see the 3 months of returns to be so close to each other.
- In a consolidating market it is difficult to create profits. I can see in a consolidating market that I would be hard pressed to get over 2%+ in a month. In fact the end of Feb the EUR\USD was in a tight range and I have no trades after the 17th.
- The ONE limitation that this strategy has is the occasional big loss. I think it is realistic to expect a one-time loss of 10%-15%. I don't think it will happen often. In fact I would be surprised to see this happen more than 1-2 times a year.
At this point my plan is to continue on with the same thing that I have been doing for the last 3 months. The key is to start adding more funds so this works out to be worth my time.
So far I'm 2 days into March and I'm already up 1.2% with more unrealized profit in the que. So it is a good start to month #4.
