Sunday, February 10, 2008

Your ability to wait for trades is your greatest edge-- IFCN Wk 9 -Fri- Equity: $524.38 - 6.29% increase

This is a good time to mention a bit about the psychology of trading through ugly markets or any markets which are not offering you much profits over a period of time.

It is psychologically difficult for a person to experience loss after loss week after week. Especially when one sees so much motion in the market which tends to imply to the ego that there is so much opportunity being missed.

Unpredictable oscillations are more likely to result in loss than gain. But they tempt the mind.

Not executing until the conditions are correct for your specific opportunity--is in itself a form of trade.

In fact, if you are able to identify the exact circumstances of the most profitable trades with some type of filter -- you now may have a filter which can be used as a system for trading by itself. But many chose not to use a broader filter as a system because the risk/reward of the filter might be onerous.

Most trading survivors end up finding a combination of a macro filter-- which preselects the right type of market-- and a simple risk/reward trading model which contains risk into smaller chunks.

If you use simpler execution methods like FirstStrike it is easier to find durable macro filters to help you find better trading ground.


This last week was a good example of the benefit of waiting for specific trades and executing them, in that 2 larger profits overbalanced the losses of the others.

We ended up with 3 losses out of our 5 FirstStrike trades. No OneNightStand trades got executed on Friday, as was expected.

This week's Alpha account trading recap:
Start of week equity: $493.33

Completed FirstStrike trades:

EUR/USD: Short @ 1.4763, -Exited Friday before 15:00 CST: 254 pip profit
GBP/JPY: Long @ 210.53, -stopped out 60 pips loss
GBP/USD: Long @ 1.9713, -stopped out 60 pips loss
USD/CHF: Long @ 1.0946, -Exited Friday before 15:00 CST: 76 pip profit
USD/JPY: Long @ 107.32, -stopped out 60 pips loss

Total of 180 pips in losses
Total of 330 pips in profits
OneNightStand Exit(s) on 02/04/07 :
OneNightStand 02/08/08 entries:
Total losses: (0 pips)
End of week equity: $ 524.38 (includes unrealized P&L)
Total Gain on Week: $ 31.05 (6.29% increase)
Unrealized P&L: $ 00.00

See you Monday!

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: and tell me which address you would like it sent.

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