The third quarter was choppy for the currency crosses, but I was able to snag more winning trades than losers. See how it all went down in this quick review of my Q3 forex trading.
Basic Forex Trading Stats
Total Number of Trades Ideas: 10
Breakeven/No Trade: 2
Win % (winning trades / triggered trades): 70%
Average Risk per Trade: 0.45%
Average Winning Trade in %: +0.23%
Average Losing Trade in %: -0.32%
Largest Drawdown: -0.71%
Q3 Total Realized Profit / Loss in %: +0.45%
According to my high win percentage, it looks like I was pretty in tune with a pretty choppy market, snagging profits in 7 out of 10 trades. But unfortunately, I didn’t really get to maximize that aspect of my performance since I had so little risk per trade on and because I wasn’t able to ride out any strong moves because of the choppiness in the currency crosses. I only had one trade where I was able to achieve a 1.00 R:R, while the rest were an average 0.43 R:R. Even with a 70% win rate, it’s tough to really run away from the losses that averaged a -0.81 R:R average per trade.
Also, I could have managed my open trades a little bit better, especially my AUD/JPY short play that was a winner going into a major economic event, but I let turn into a loser. Lesson learned there is to close down trades ahead of major events like employment data.
With that quarter in the books, I’m down a small -1.65% year-to-date through the third quarter, and I’m lagging my benchmarks: the Barclay Hedge Currency Traders Index (+2.95% YTD thru the end of September) and the Barclay Hedge Discretionary Traders Index (-0.39% YTD thru end of September). Double ouch, but I guess I can take some solace that my third quarter could have been worse.
Overall, I’ve gotta do a better job of holding onto winners and cutting losers, but a big part of that is up to the data and how it may shift sentiment in the short-term. For a while, there was quite a bit of choppiness, so cutting winners early was unavoidable. Still it’s something to keep reminding myself about and improving on as I try to close out 2015 in the positive.
That’s all I got for now forex friends…How did you do in Q3 2015? Please share your thoughts in the comment box below. Thanks for stopping by and good luck in Q4 2015!