This is how the EURUSD day trading strategies I am using performed during the month of March. I only trade for approximately 2 hours each day, so these results are for the period between roughly 8:30 and 10:30 AM EST, during the London and New York overlap period. Using a 1-minute chart.
The results are broken down based on the potential for each strategy. Executing every trade perfectly is not an easy task, so actual trading results will typically be lower. The goal is to continually progress and trade the strategies as well as possible. Once we are trading a strategy very well, then more strategies can be added to the trading plan to further boost returns.
A 2.5:1 reward to risk is used on every trade. Early exits are allowed for high-impact news announcements or if another valid signal develops in the opposite direction while in a trade. I also may exit early if it is pre-planned before the trade because of certain market conditions.
EURUSD Day Trading Strategy Profit Potential For Month of March
The following chart breaks down profit potential by week. These numbers come from actual trades, plus missed trades that should have been taken, and deducting trades that were taken that shouldn’t have been (didn’t align with the strategies).
|April 1-9 Potential Profit||+18.36R|
|April 12-16 Potential Profit||+13.31R|
|April 19-23 Potential Profit||+32.49R|
|April 26-30 Potential Profit||+11.97R|
|April Total Profit Potential||+76.13R|
|Average Profit Per Day||22 days||+3.46R|
|Average Trades Per Day||54 trades||2.45|
|April Win-Rate for Strategies||38/54||70%|
|April Average Reward:Risk||2.8:1|
“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. For example, risking 1% of the account per trade, the profit potential for the strategies was 76.13% for April , less commissions.
To see the charts and trades for each week, see the links in the table above.
Remember, these figures are based on trading a strategy perfectly, based on the strategy parameters. The goal, which can take years, is to develop enough discipline and focus to approach the ideal/strategy profit potential number in our actual trading.
Also, to realize these returns, an ECN broker is pretty much required, ideally with a small spread. ECN brokers charge a commission, so commission costs, which can vary greatly, need to be deducted from the profit potential.
Typical leverage is about 30:1. Ranging from 20:1 to 50:1, depending on the stop loss distance in pips. This is what creates the high percentage returns. Understand the pros and cons of leverage before using it.
EURUSD Day Trading Strategy Totals
These numbers are how each strategy performed. They are my own trades, plus missed trades, less trades I took that I shouldn’t have.
I have included a chart with examples for each strategy.
Rounded Bottoms (RB) and Tops (RT): +50.87R
(By week: 5.36, 13.01, 24.88, 7.62)
Double Pump (DP) +15.81R
(By week: 7.88, 0.3, 5.13, 2.5)
Snap Backs (SB): +4.47R
(By week: 5.12, 0, 0, -0.65R)
Double Pump Variations (DP variation): +4.98R
(By week: 0, 0, 2.48, 2.5 )
Squeeze Play (SP): 0R
(By week: 0, 0, 0, 0, 0)
Triple Pump (TP): 0R
(By week: 0, 0, 0, 0, 0 )
I recorded myself trading and talking through the trades. You watch those videos on EURUSD Recorded Day Trading Sessions.
My Own Personal Trading Observations/Areas to Work On
This was a good month, and I am feeling good about my trading. That said, I definitely notice a tendency lately to “check out” early in my trading sessions. Often after an hour to an hour-and-a-half, I am already getting up or doing other stuff. Basically, I am not super interested in trading for more than an hour a bit.
Over the next week, reflect on this and decide if only trading for 1 to 1.5 is what I really want, or if I do want to trade the full two hours and just need to spend some time working on my focus. Do a parts negotiation and see what is fulling me away, and if that need can be satisfied at another time when I am not trading.
The EURUSD Day Trading Course will be out by late May/early June! It covers this entire method of trading.
In the meantime, learn the basics of trading the forex market with the Forex Trading Introduction Course.
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.