The EURUSD day trading strategies provide a profit potential of +11R 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.)…This week I underperformed the potential by a wide margin.

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. Quite often 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.

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

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:

There were TWO DAYS with NO TRADES this week, and those days have pretty low volatility. But overall volatility is picking up, which is good to see. that generally means more valid trades and more profit potential. The chart shows a 4-week average of volatility per day over the last 12 months

• Profit potential was +11.62R 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 11.62% (less commissions), trading about 1.5 to 2 hours per day.
    
    
  • Thursday was a big potential day. Another 5R within an hour of when I stopped. So that could bump up the weekly total.

• Average trading time per day: 1 hour 18 minutes.
  
  
• 78% win rate if the strategy rules were followed.
  • win 7 / 9 trades.
  • Higher than normal, but not many trades except on the bigger movement days.
• Reward to Risk (based on all potential trades):
  • 2.97:1
  • Winners: 2.55, 2.95, 2.5, 0.1, 2.5, 2.52, 2.5 = 15.62 / 7 = 2.23
  • Losers: 0.5, 1 = 1.5 / 2 = 0.75
  • = 2.23 / 0.75 = 2.97
  • Skewed higher than usual because not many losses and one was small.
• Typical leverage is about 30:1. Ranging from 20:1 to 50:1, depending on the stop loss distance in pips.

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: +12.12R
  (Daily totals: 7, 0, 2.6, 2.52, 0)
  
  
• Snap Back strategy profit: 0R
  (0, 0, 0, 0, 0)
  
  
• Double Pump strategy profit: -0.5R
  (0.5, 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

My focus this week doesn’t really have to do with trading. I am thinking about what I value and how I want to spend money. Throughout my adult life I have spent insane amounts of money eating out and ordering in. That is fine; I enjoyed it. But I am also thinking about my health and have cut back spending on dining in and taking out nearly completely. I have a personal trainer 3 to 4 days per week, for more than a year now, and it seemed counter-productive to be eating out every night. I dumb person would figure that out in a few week; it took me a year.

So I am just thinking about what other spending habits I have that no longer really serve me. And where would I rather re-direct that money instead? It is easy to just plow more money into my retirement investment account, but there are other alternatives that may bring more satisfaction. Alternative investments for example….

I collected comics and trading cards as a kid. I still have some trading cards, and have recently made a few comic purchases as alternative investments.

Something to think about: What do you spend money that doesn’t serve you anymore? What else could you do with it? (no need to answer, for personal reflection only)

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: +51R potential.
• October: +46R 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.