The EURUSD day trading strategies provided a profit potential of +5R this past week (“R” is described below). The strategies used, and their statistics for the week, are outlined below.
I traded very little this past week. I briefly watched the chart on the 29th, I posted a chart of what I saw on the 30th, and then I took one trade on the 31st. The 5R result is from the 30th and 31st. I saw a number of students posting their charts and making much more than 5R this week. Despite the holiday season, it was a good week for day trading.
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:
- Profit potential was +5R for the two days of trading (30th and 31st). This is if all the valid trades were taken, and no invalid trades were taken.
- “R” in trading 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 5% (less commissions), trading about 1.5 to 2 hours per day.
- Average trading time per day: 1 hour 40 minutes.
- 100% win rate if the strategy rules were followed.
- win 2 / 2 trades.
- Reward to Risk (based on all potential trades):
- Wins average: 2.5, 2.5 = 5/ 2 = 2.5
- Loss average:
R:R: 2.5 / 1 = 2.5
- No losses this week, but 1R was risked on the trades taken.
- 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: +5R
(Daily totals: 0, 0, 0, 5, 0)
- Snap Back strategy profit: 0R
(0, 0, 0, 0, 0)
- Double Pump strategy profit: +0R
(0, 0, 0, 0, 0)
- Double Pump Variation strategy profit: +0R
(0, 0, 0, 0, 0)
Daily Charts and Trades
Charting provided by TradingView.
My Focus For the Next Week
Currently working on how I want to trade this year and any changes I want to make.
I will continue with the day trading the EURUSD, but may need to change up my hours a bit. Monday, Wednesdays, and Fridays feel a little rushed with training at the gym right after.
I also want to implement some more forex swing trading, but the time commitment has to be low. I will be going through my strategies and see which ones can fit into my life right now.
As for stock swing trading, I have been trading some earnings plays and am looking to refine that strategy more and continue to allocate more capital to it as I get more confident with 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: +51R potential.
- October: +46R potential.
- November: 48R potential.
- December: +53R 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 exercises 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.