Saturday, April 20, 2013

Trade week in review: 15 April to 21 April 2013

It's been a good week. I opened five trades using my re-optimised Daikoku low volatility system and all closed in profit. There was a glut of entry signals, so I limited my trades to 1% risk and focused on five pairs, providing a nominal exposure of 5% for the week.
 
What's interesting is that even though there is some correlation on paper, some of the trades opened and closed at different times or days, reducing overlap. I think this is mainly due to the small profit target of my trades. If your trades are small, pip-wise, then your potential for overlap is reduced, even if you are trading correlated pairs or similar setups. That was an interesting lesson. I would like to try a variation of this system with a smaller stop loss, but won't have time to backtest for awhile.
 
The five trades were done on the EURCAD, EURJPY, GBPJPY, USDCHF and USDJPY pairs.
 
EURCAD, EURJPY, GBPJPY, USDCHF and USDJPY
 

 
Rather than post five charts of the same setup, here's one example of what I traded (EURCAD).

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