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. 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 exit early for high-impact news announcements or if another valid signal develops in the opposite direction while I am 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
Before we can tally up March, here are the quick results for the last three days of month, March 29 to 31.
Win 5 / 8 trades
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).
|March 1-5 Potential Profit||+11.74R|
|March 8-12 Potential Profit||+22.28R|
|March 15-19 Potential Profit||+27.51R|
|March 22-26 Potential Profit||+9.1R|
|March 29-31 Potential Profit||+5.99R|
|March Total Profit Potential||76.62R (less commissions)|
|Average Profit Per Day||23 days||3.3R/Day|
|Average Trades Per Day||57 trades||2.48 Trades/Day|
|March Win Rate for Strategies||41/57||72%….this is really high. |
Usually closer to 50%
|March Average Reward:Risk||Near 2.5:1.|
“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 76.62% for March, 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.
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): +47.04
(By week: 8.5, 17.24, 12.61, 6.3, 2.39)
Double Pump (DP) +17.99R
(By week: 0, 4.94, 6.95, 2.5, 3.6)
Snap Backs (SB): +6.33R
(By week: 3.24, 0, 2.79, 0.3, 0)
Double Pump Variations (DP variation): 2.5R
(By week: 0, 0, 2.5, 0, 0 )
Squeeze Play (SP): 0R
(By week: 0, 0, 0, 0, 0)
Triple Pump (TP): +2.66R
(By week: 0, 0, 2.66, 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
I felt I lacked some motivation this month. Wanted to go back to bed more often, quick earlier. That’s ok, but it can also be worked on because it could become an issue if I get lazy.
This weekend, do a parts negotiation with that part that doesn’t want to trade. Why doesn’t it want to trade? Find out what it needs, and give it (outside of trading hours) so that I can focus on trading without that part interfering.
Also, I was supposed to go through all my charts for the last couple months last weekend. I didn’t. Do that this weekend, or before I start trading again. I have noticed that I am tending to exit trades more often. Through the many test I have run over the years, I know I am better off staying in trades. I need to prove this to myself again by going through hundreds of trading examples. I find I have to do this every few months.
I will have a EURUSD day trading course out by June, but 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.