The EURUSD day trading strategies produced a potential profit 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 actual profit is the dollar amount of Trading Mistakes made (factor in any alterations made to the strategy).
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. Monday, Sept 6 was a holiday—I didn’t trade that day.
The following charts shows 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, just have to wait for the good opportunities (like always!).
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.
Totals for this week:
- Potential Profit was +10.26 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 10.26% (less commissions), trading about 1.5 to 2 hours per day.
- Most days this week only produced one or two nice trading opportunities. There was two day with no opportunities.
- 5 wins / 7 trades = 71% win rate if the strategy rules were followed. Higher than normal, but not very many trades.
- Reward to Risk (based on all potential trades):
- Winners: = 0.7, 2.86, 2.55, 2.7, 2.7 = 11.51 / 5 = 2.3
- Losers: = 1, 0.25 = 1.25 / 2 = 0.625
- = 2.3 / 0.625 = 3.68:1 Higher than usual because one loss was small, skewing the result.
- 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: +7.01R
(Daily totals: 0, 0, 1.86, 2.7, 2.45)
- Snap Back strategy profit: 0R
(0, 0, 0, 0, 0)
- Double Pump strategy profit: +3.25R
(0, 0.7, 2.55 , 0, 0, 0)
- Double Pump Variation strategy profit: 0R
(0, 0, 0 , 0, 0)
- Squeeze Play (SP): 0R
- Triple Pump: 0R
- Broken Break: 0
(0, 0, 0, 0, 0)
Daily Charts and Trades
Charting provided by TradingView.
My Focus For the Next Week
I am focusing on making solid trades this week. It has been lower movement, so I need to take each day as it comes and trade it for what it is presenting. I am not coming in with preconceived ideas about how the day will be. Trade the price action in front of me. Quality setups only, and be ok with not taking a trade all week if there aren’t any.
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)
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.