This is how several of the EURUSD day trading strategies I am using performed during the month of February. 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. I trade 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.
I use a 2.5:1 reward to risk on every trade. I only exit early for high-impact news announcements or if another valid signal develops in the opposite direction while I am in a trade.
EURUSD Day Trading Strategy Profit Potential For Month of February
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).
|February 1-5 Potential Profit||+27.56R|
|February 8-12 Potential Profit||+14.48R|
|February 16-19 Potential Profit||+17.125R|
|February 22-26 Potential Profit||+18.94R|
|February Total Profit Potential||+78.105R|
|Average Profit Per Day||19 days||4.11R/Day|
|Average Trades Per Day||About 53|
“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 18.94% for February 22-26.
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.
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): +36.695R
(By week: 11.57, 4.06, 9.175, 11.89)
Double Pump (DP) +28.79R
(By week: 10.07, 8.72, 5, 5)
Snap Backs (SB) +6.69R
(By week: 2.04, 1.7, 2.95)
Double Pump Variations (DP variation) +2.25R
(By week: 2.25)
Squeeze Play (SP): 2.5R
(By week: 2.5)
Other Noteworthy Statistics
The average win rate for the month was close to 60%.
The average reward:risk was near 2.25:1. That’s what really helps get the nice profit.
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
The numbers below are based on actual trades and represent whether skipping trades was a bigger problem, or taken trades I shouldn’t be in.
Valid Trades That Were Not Taken: 22.5R missed
Trades Taken That Were Mistakes: 4.07R lost
Missed trades, at 22.5R, were a much bigger problem than poor trades taken.
I am continuing to battle distractions will trading. Losing focus, not talking through the price action, and thus missing trades is inevitable. In March, focus hard on the parts negotiation: outside of trading, in my morning routine, and throughout the day to keep the distractions to a minimum while day trading.
By Cory Mitchell, CMT