To be honest, I thought it was a pretty awesome year for the cross-currency pairs, as we saw tons of potential setups across all the different pairs. The most obvious, of course, were those trend plays on the yen. Anyone who went long on the yen crosses late in the year would have made a killin' had they pressed their positions!
In hindsight, it was pretty obvious that adding more QE was the direction that the Bank of Japan was headed in, so I probably could have done a better job on recognizing that and hopping on the bandwagon.
Nevertheless, I still had a pretty decent year. Here's a compilation of my trading statistics for 2012:
2012 Cyclopip Trading Statistics
Total Number of Trade Ideas: 42
# of wins: 13 wins
# of losses: 15 losses
# of Breakeven trades: 3
# of Cancelled trades: 11
Win/ Loss Percentage: 41.94%
Total Profit / Loss in pips: +204 pips
Total Profit / Loss in %: 4.40%
Largest Winning Trade: +87 pips (+2.175%)
Largest Losing Trade: -78 (-1.00%)
Largest Drawdown: -292 (-1.79%)
I've also put up a graph that reflects my account balance over the past twelve months:
What makes 2012 so sweet? Well, aside from the fact that the world didn't end, being profitable this year helps! This year, my account ended up 4.40% bigger, which marks a complete turnaround from the 4.53% hit in 2011!
Interestingly, I did quite well despite missing all those awesome yen moves. Oddly enough, I made a living trading the more "exotic" pairs like EUR/CHF and AUD/CAD!
Moreover, I didn't bag as many pips as I did in 2011, but I think the difference was in how I managed my risk. My largest drawdown for the year was just 1.79%, after I had a drawdown of 5% last year.
Most importantly, I felt I really improved on my consistency this year as I didn't have a single negative quarter. I hope this means I'm one step closer to being a consistently, profitable trader!
Most Memorable Trade
No doubt this year's most memorable trade was the long EUR/CHF setup that I entered back in April. Why? Because it took 5 months to complete!
Yeah, it might not have been this year's most profitable trade (that title belongs to my EUR/GBP trade in February), but it definitely was the most exciting. It sent me on an EXTREMELY long rollercoaster ride of emotions and it required a lot of patience on my part (not to mention faith in the SNB), but fortunately, the SNB didn't let me down. It defended the 1.2000 handle like Dwight Howard defends the paint!
Not only did this long-term trade reward me with a pretty slick 1.00% return, it also taught me the value of patience!
Of course, that's not the only thing I learned this year. I took a lot of trades in 2012, and each one contributed to my growth as a person and as a trader. Below is a summary of my key learnings for 2012:
1) You can't catch 'em all.
Don't believe the Pokemon slogan... You DON'T gotta catch 'em all! In Q1 2012, I resolved to reduce missed opportunities. But try as I did, completely doing so was impossible. There were times when I'd find great setups that I was willing to take a risk on, but I would still end up missing the trade.
Take for instance the series of would-be winners that I wasn't able to capitalize on in Q4. I had my orders set and everything ready to go, but the market just didn't trigger my orders. I ended up letting some serious pips slip through my fingers because I had missed the trade. But that's just a part of trading. You can't catch 'em all.
2) Risk management rocks!
I can't say enough about how proper risk management saved my butt. Throughout the entire year, I was consistent in limiting my risk exposure to acceptable levels, and it shows in my stats. My average winning trade was always larger than my average losing trade.
This kept me in business (and my account in the green) even though I had more losses than wins this year. Needless to say, you can bet your bottom dollar that I'll be keeping my risk in check in 2013!
3) Doing prep work pays off.
I'll admit, doing prep work on Mondays can be somewhat of a downer, but I'm convinced it helped me a lot with my trading this year. Making my Weekly Watch at the start of every week really helps put me in the proper mindset and prepares me for another week of trading.
By doing my pre-market routine and listing down my must-watch levels on my favorite pairs, I'm able to save time looking for setup and instead focus my energy on managing my trades.
4) Maintaining Focus
Last but not least, I learned the importance of maintaining focus day in and day out. Sometimes, it can be difficult, especially when we go through trade after trade. But I came to realize that one trade can make or break your month/quarter/year.
You really do have to take things one trade at a time because each trade matters and affects your bottom line.
There you have it, guys. All in all, I have to say that 2012 was downright AWESOME, and I'd like to thank you all for sharing it with me. It just wouldn't have been the same without your support and feedback.
So here's to wrapping up a wonderful 2012 and having an even better 2013! See y'all on the other side of the holidays, fellas!
- Surviving the Choppiness that Defined 2011 06:06 27 December 2011
- Knocked Down but Never Out in 2010 18:00 28 December 2010
- Q2 2012 Trading Performance Review 08:16 08 July 2012
- Q1 2012 Trading Performance Review 01:42 04 April 2012
- Q3 2012 Trading Performance Review 15:09 05 October 2012