The EURUSD day trading strategies provide a profit potential of +17R 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.
I trade on a 1-minute chart and use the strategies discussed in this review. The week’s charts, with the trades, are below.
Totals for this week:
Pretty good movement this week. Definitely seeing more movement come back into the pair.
- Profit potential was +17.51R 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 17.51% (less commissions), trading about 1.5 to 2 hours per day.
- Average trading time per day: 1 hour 35 minutes.
- 100% win rate if the strategy rules were followed.
- win 7 / 7 trades.
- Not normal to win all the trades, but there also weren’t many.
- Reward to Risk (based on all potential trades):
- Wins average: 2.72, 2.48, 2.48, 2.51, 2.23, 2.52 = 17.51 / 7 = 2.5
- Loss average: none, so will assume 1, which the orginal risk on each trade
R:R: 2.5/ 1 = 2.5
- exactly what it should be
- 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: +12.42R
(Daily totals: 5.2, 2.48, 2.51, 2.23, 0)
- Snap Back strategy profit: 0R
(0, 0, 0, 0, 0)
- Double Pump strategy profit: +0R
(0, 0, 0, 0, 50)
- Double Pump Variation strategy profit: +5.09R
(0, 0, 0, 0, 5.09)
Daily Charts and Trades
Charting provided by TradingView.
My Focus For the Next Week
I will probably keep day trading this week, but after that I will be spending my time reflecting on any changes I want to make to my plan for the upcoming year. I plan to include more forex swing trading, which I did almost none of this year, and also include some shorter-term stock swing trades. A lot to figure out…mainly how I will fit it all into an already tight schedule. So I will be looking at ways to make things more efficient.
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.
- November: 48R 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.
COURSES ARE CURRENTLY 20% OFF FOR the loooooong BLACK FRIDAY SALE.
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.