13 Nov 2014


So after carefully reviewing my trade journal I've decided to do some restructuring that should help me maximize my potential returns. Here's what I've come up:

1) Opening another trading account.

Looking back over my trades for this past year I've realized that I have become my own worst enemy. Although when I started my forex journey, being a conservative trader helped me a lot with growing my small account, now when my experience has grown enormously, I can see that I lose more money because I am so loss averse, instead of me being wrong. So... I have decided to open another - smaller account     ( £ 500) where I will implement more aggressive approach to all my trades.

I also won't be taking any profits out of it so that I can properly monitor the account growth. I will trade this account for not less then half year. And if this account makes me more profit than my primary  - conservative account I will start applying the same strategies there as well. 

2) Increasing my risk percentage.

Comparing my actual returns with potential returns I would have made if only my maximum risk percentage was only 1% higher, I discovered it would have yielded me a total of 28% !!! more money than I actually made so I've decided to increase my maximum risk per trade to 3% of my account equity.

3) Choosing the right time frame.

Although I more often than not trade of H4 and daily charts I am sometimes tempted to go to lower time frames to look for trades. Unfortunately, my results drop almost proportionately the time frame I choose to trade. My winning percentage for all the trades I've made in time frames under H4 is a mere 32%, comparing to my overall winning percentage of 76% over the year. And although these smaller time frame trades have yielded me a total of 0.65% account growth over the year I am considering that it could have happened due to a simple chance and it just as well could have gone the other way.

So... I have another rule that goes into my rule book. DO NOT trade smaller timeframes than H4

4) Choosing the right days to trade.

Another interesting fact my journal shows is - I am bad at trading on Fridays. I know that it may seem funny for some people - but statistics don't lie. My winning percentage on trades that I make on Fridays is 43% - again, comparing this to my overall win percentage of 76%. And although I know - partly these losses come from violating another rule of mine ( DO NOT trade after 2 PM GMT on Friday afternoon), I still feel I could do more to turn this around.

So... I have decided to watch my results on Fridays more closely and reassess after the year has closed, however I will not be risking more than 1% on any trade made on Friday...

So what do you think? Do you do your journal analysis? What interesting facts have you discovered?

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