Overall, the first quarter of 2012 was very harsh to me. I had 10 total triggered trades for the period – four ended up as winners while the remaining six were all losers. The end result was -143 pips, or -4.60%. Below is a table of all the trades that I took.
|1/05/2012||Retracement Play on GBP/USD||-50 pips/-1.00%|
|1/12/2012||Two Plays on GBP/USD||-50 pips/-1.00%|
|1/19/2012||Support-Turned-Resistance on EUR/USD||-55 pips/-1.00%|
|2/1/2012||Play the Range or Ride the Trend?||+100 pips/+0.50%|
|2/21/2012||Inverse-Head-and-Shoulder-Trade on USD/CHF||-55 pips/-1.0%|
|3/1/2012||Catching the Dollar Rally on EUR/USD||+170 pips/+1.50%|
|3/7/2012||GBP/USD: Entering on a Retracement||-27 pips/-0.6%|
|3/15/2012||EUR/USD: Trading the Falling Wedge on EUR/USD||+8 pips/+0.00%|
|3/21/2012||GBP/USD: Playing the Range||-122 pips/-1.00%|
|3/29/2012||EUR/USD: Long at the Trend Line Bounce||-62 pips/-1.00%|
What I Did Wrong
I think my main problem is that I do not manage my trades properly and that I pick the worst reward-to-risk ratios. In most of my losing trades, my account took the whole 1% hit, but when I win, I only got 1.50% at most. There was even a time when I only won half a percent despite earning a cool 100 pips.
That being said, I promise to improve on both these aspects for the upcoming quarter. When I put on a trade, I won’t stop watching it after I get triggered. I will continue to monitor it and make adjustment as it unfolds. In other words, I will get rid of my “set and forget” mentality.
In addition to this, I’ll be more sensitive to the reward-to-risk ratio. Since I am swing trading most of the time, I believe this is of utmost importance. I shouldn’t be afraid of going for 3:1 or even 4:1 ratios.
Okay, that’s all I have for ya’ll now. Tomorrow, I’m going to show the stats for the HLHB Trend-Catcher 3.0 for the first quarter of 2012.