The EURUSD day trading strategies provide a profit potential of +10R this past week (“R” is described below). The strategies used, and their statistics for the week, are outlined below.

The difference between “potential” and our actual profit is the dollar amount of Trading Mistakes made (factor in any alterations made to the strategy, such as trailing stop losses, etc.).

Lower daily movement continues in the EURUSD, as overall volatility continues to decline. But I did see at least one trade every day this week in the 1 to 2 hours I trade.

The top chart below shows the average daily volatility over the last year. It stands to reason, with less movement, there will be fewer trades. That’s fine. Can still make great returns, we just have to wait for the good opportunities (like always!).

These stats are based on a 4-week average (the last couple weeks I showed charts using a 10-week average). This short-term average is starting to show a bit of an uptick in daily volatility, which will hopefully produce more trading opportunities.

The strategies have rules and are part of a complete trading plan, but trades are discretionary and subject to interpretation. The goal is to reach the profit potential (or possibly exceed it), but actual results will typically be lower especially when learning.

The profit potential is based on trading a 2-hour window between approximately 8 and 10 AM EST. Some days I only trade for 1.5 hours. It can help with consistency to have a daily trading routine, and then I also recommend having a quick pre-trade routine to get yourself in the right headspace for profitable trading.

I trade on a 1-minute chart and use the strategies discussed in this review. The week’s charts, with the trades, are below.

All the strategies discussed below are covered in the EURUSD Day Trading Course, and the trades are based on the rules of those strategies.

Here is a video recap of the trades for this week.

Totals for this week:

• Profit potential was +10.3 for the week. This is if all the valid trades were taken, and no invalid trades were taken.
  • “R” is a standardized risk amount. It could be 1% of the account, 0.5% of the account, or any amount you choose based on your position sizing method.
    
    
  • In other words, if risking 1% of the account per trade, the potential profit from these strategies this week was 10.3% (less commissions), trading about 1.5 to 2 hours per day.
• 54% win rate if the strategy rules were followed.
  • wins 7/ 13 trades.
• Reward to Risk (based on all potential trades):
  • 3:1
  • Winners: = 2.5, 2.5, 2.5, 2.5, 0.7, 2.5, 1.1 = 14.3 / 7 = 2.04
  • Losers: = 1, 1, 0, 1, 0, 1 = 4 / 6 = 0.66
  • = 2.04 / 0.66= 3:1
  • Higher than usual because of some flat trades that I consider losses.
• Typical leverage is about 30:1. Ranging from 20:1 to 50:1, depending on the stop loss distance in pips.
  
  
• If you want to watch me trade and talk through the process, check out trading sessions I recorded.

You can track a lot of these stats in the free and downloadable forex day trading log (Excel spreadsheet).

EURUSD Day Trading Strategy Totals

These are optimal results for the strategies, including trades I missed and excluding trades I shouldn’t have been in. This is so I can ascertain over time which strategies are working the best and producing the most profit potential.

• Rounded Tops and Bottoms strategy profit: +6.3R
  (Daily totals: 1.5, 2.5, 0.7, 2.5, -0.9)
  
  
• Snap Back strategy profit: +2.5R
  (0, 0, 2.5, 0, 0)
  
  
• Double Pump strategy profit: +1.5R
  (1.5, 0, 0, 0, 0)
  
  
• Double Pump Variation strategy profit: 0R
  (0, 0, 0 , 0, 0)
  
  
• Squeeze Play (SP): 0R
  (0)
  
  
• Triple Pump: 0R
  (0)
  
  
• Broken Break: 0
  (0, 0, 0, 0, 0)

Daily Charts and Trades

Charting provided by TradingView.

My Focus For the Next Week

The focus this week is to get my mind more settled via getting back into meditation and yoga.
I have noticed the last little while that my impulses are taking over in certain areas, instead of deliberate action. For example, I’ll just grab some chips or order food delivery without thinking or considering if that is what would serve me best. As discussed last week, I was also jumping into trades in the morning without doing my morning routine which helps clarify my purpose and gets me in a calmer mental state.

I prefer making conscious choices, as opposed to acting on autopilot…or a better description is “zombie mode”…just doing what is easiest. And lately, I have felt more on autopilot/zombie mode.

How to correct that? Take time to slow down. Breath, clear the mind for 10 minutes a couple of times a day… every day, for at least the next week. This is another habit I have gotten out of, and I need to get back into it.

Here are the prior totals (monthly). Actual charts are in the weekly articles listed within the monthly-total articles:

• January: +63R potential
• February: +78R potential
• March: +76R potential
• April: +76R potential
• May: +94R potential
• June: +91R potential
• July: +67R potential
• August: +38R potential (we can see the drop in volatility affecting the number of trades and thus the profit potential)
• September: will be posted soon.

Want to learn how to trade like this? Check out the EURUSD Day Trading Course. It covers strategies for crushing the EURUSD in two hours or less, as well as mental game work and exercise to get in the profit-making zone and stay there.

By Cory Mitchell, CMT

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.