Q4 2013 Trade Review and Reflections

I have compiled my Q4 2013 trading stats and I did NOT like what I saw. Luckily, my earlier trades kept me in the green for 2013!

Date Trades Gain/Loss
Oct 10 Time to Buy USD/JPY -0.29%
Oct 24 EUR/USD Breakout Trade -0.55%
Nov 19 Swing Trading USD/JPY’s Rising Trend Line +0.61%
Dec 11 Retracement Play on GBP/USD! -0.24%
Total Gain / Loss -0.47%

No. of Trade Ideas: 4
Trades Triggered: 4
No. of Wins: 1
No. of Losses: 3
No. of Break Even Trades: 0
Win %: 25%
Average Gain Per Winning Trade: +0.61%
Average Loss Per Losing Trade: -0.44%

I only have a handful of trades to reflect on so it doesn’t take a lot to know where I went wrong. First, I noticed that I took too few trades. This is probably because I was hesitant on opening multiple positions while I’m closely watching my USD/JPY swing trade. I ended up missing EUR/USD’s uptrend and USD/CHF support break. Boo!

I also saw that I’m not trading the strengths of my system. My SMAs work really well on trends but I chose to trade a breakout and a ranging environment. In my GBP/USD trade I even chose to go against my fundamental biases because it had a good technical setup!

Last but definitely not the least, I also see that I need to work on my stop loss placement. I need to balance getting good risk ratios with placing stop losses with enough breathing room. I should also pay closer attention to average volatility and current market biases.

Good thing that I only got a few scrapes with last quarter’s trading and was still able to end the year on the green. Here are my 2013 stats!

No. of Trade Ideas: 38
Trades Triggered: 20
No. of Wins: 9
No. of Losses: 11
No. of Break Even Trades: 1
Win %: 45%
Average Gain Per Winning Trade: +1.65%
Average Loss Per Losing Trade: -0.71%

As you can see, I did NOT have a good win %. Luckily, the average gains were more than twice the average losses. See how important it is to keep losses to a minimum while maximizing gains?

In 2014 I’m planning to put up more trade ideas but be more picky on actually trading them. I’ll also look for more trend trades (rather than breakouts and ranges) in order to utilize my SMAs better. Next, I’ll be more mindful about placing my stop losses and maybe risking more per trade so our efforts at fundamental and technical analyses won’t be wasted.

I’ll likely think of a gazillion more ways to improve on my trading but this is it for me for now. How about you? What tweaks are you making on your trading systems this year?

Thanks and XOXO!

Huck

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6 comments

  1. ForExchange

    Hi!

    My question is: does it make sense to have so few trades/year? Even if you win them, it would be better off to put your money in the bank and get the interest rates because with so few trades you can not win a lot!

    Would it not make more sense to make a bit fewer analysis but more trades and although the “pips win”/trade will go down, however you will win a little very often and your overall performance will be better. With an example: it is better to win 20x 1USD than winning 1x 8USD.

    Waiting for your reply,
    ForExchange

    Reply
    • Hucklekiwi Pip Post author

      Hey ForExchange!

      Good point about making fewer analyses and more trades! I’m not a full-time trader though, so swing and trend trades are still more convenient for my schedule.

      One of the strategies that I’m considering is increasing my risk per trade to maximize my efforts at finding trade ideas. I might also concentrate on holding on to longer-term positions that yield positive carry. :)

      Reply
      • ForExchange

        Hi Hucklekiwi,

        you guys do never write about Rollover in your articles. When you are thinking about on longer-term positions, do you also think about the positive or negative effect of Rollovers or is it more like a “must that comes with the trade” and you do not consider this factor when deciding about making long term trades?

        Have a nice week

        Reply
        • Hucklekiwi Pip Post author

          Yep, we do consider carry trade profits when we trade long-term positions.

          We usually hold positions for a couple of days though, so profits from carry trades don’t usually have significant effects on our trades :)

          Reply
  2. Pingback: Trade: Long GBP/USD at 1.6450 | Forex Blog: The Loonie Adventures of a Forex Noob

  3. Pingback: Update: Retracement Trade on USD/JPY | Forex Blog: The Loonie Adventures of a Forex Noob

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