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Denese's review
Investment Sector: Currencies Submitted by Denese 
9 months ago Tags: currency trading money markets strategy money management hedging limits stops exit strategy entry strategy leverage Denese Sinclair Forex Add Tag |
The Strategy
The strategy we are testing is my midpoint strategy which in the first week of our testing made 40%. The strategy is explained in the first “Trade With Me” article, Trade With Me Sunday 17th. Which can be viewed <u>here.</u> The links have not been working and should this be the case, go to the articles under my name and scroll through to find it.Trade Analysis
Yesterday the hedge came into play and went positive. I set the stop to break even so it sold out without cost, and the missed midpoint of 211.66 was reached with ease.
Giving us a profit of $84.24
Trading Record To Date
| Day | Date | Balance | Trade | Qty K | P/L | Trade Setup | Trade Analysis |
| Day 1 | 18/02/2008 | $500.00 | $50 | 10 | $0.00 | <u>Trade with Me 18-2-8</u> | <u>Trade With Me 19-2-8</u> |
| Day 2 | 19/02/2008 | $500.00 | $50 | 10 | $50.59 | <u>Trade With Me 19-2-8</u> | <u>Trade with Me 20-2-8</u> |
| Day 3 | 20/02/2008 | $550.59 | $50 | 10 | $39.00 | <u>Trade with Me 20-2-8</u> | <u>Trade With Me 21-2-8</u> |
| Day 4 | 21/02/2008 | $589.59 | $50 | 10 | $90.79 | <u>Trade With Me 21-2-8</u> | <u>Trade With Me 22-2-8</u> |
| Day 5 | 22/02/2008 | $680.38 | $50 | 10 | $19.52 | <u>Trade With Me 22-2-8</u> | <u>Trade With Me 23-2-8</u> |
| Day 6 | 25/02/2008 | $699.90 | $50 | 10 | $30.36 | <u>Trade With Me 25-2-8</u> | <u>Trade With Me 26-2-8</u> |
| Day 7 | 26/02/2008 | $730.26 | $50 | 10 | -$69.70 | <u>Trade With Me 26-2-9</u> | <u>Trade With Me 27-2-8</u> |
| Day 8 | 27/02/2008 | $660.56 | $50 | 10 | $84.24 | <u>Trade With Me 27-2-8</u> | Current Article |
| $744.80 |
Today’s Trade
We are trading GBP/JPY and to make the trade we check the data from the previous day.
Determining the Midpoint
Yesterday’s high is 213.27 and the low is 210.62 and the midpoint is 211.945. The current price is 210.98 which is below the midpoint, so I will buy and target the midpoint of 211.94.
Setting Up the Trade
Setting up the Hedge
We calculate 50 pips below the purchase price and set our entry to come in at that point – I have rounded the figures off for ease and am setting up a sell transaction to offset the original buy transaction, should the price go the wrong way, and it will now come into play if the price reaches 210.5 Setting the Exit Point
I set the limit at our midpoint of 211.945 which will give us a profit 0f 96.5 when it is reached.
Points from All Trades
System Weakness
1. The hedge can be extremely costly if the price plays around the hedge entry and hedge stop positions. We need a modification here to deal with these market conditions. Any comments or suggestions will be appreciated.2. I trade with FXCM and unfortunately at this point they do not offer programmable options. A conditional limit, which once reached can become a trailing stop, would increase the profit potential. (If anyone is aware of a trading station which offers this feature or allows it to be programmed in, please let me know.)
3. Don’t forget to delete the hedge order if the transaction closes and the hedge has not come into play. I forgot it once and was horrified the next morning to see it had triggered and I was trading!Did you find this article useful?
