This is how the EURUSD day trading strategies I am using performed during the month of May. 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 May
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).
|May 3 – 7 Profit Potential||+26.41R|
|May 10 – 14 Profit Potential||+24.24R|
|May 17 – 21 Profit Potential||+23.63R|
|May 24 – 28 Profit Potential||+20.61R|
|May Total Profit Potential||+94.89R|
|Average Profit Per Day||20 days||4.74R|
|Average # Trades Per Day||74 trades||3.7|
|May Win-Rate for Strategies||49/74||66%|
|May 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 94% for May, 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): +57.16R
(By week: 14.73, 14.06, 14.79, 13.58)
Double Pump (DP) +25.99R
(By week: 9.18, 7.7, 4.08, 5.03)
Snap Backs (SB): +8.28R
(By week: 5, 2.48, 0, 0.8 )
Double Pump Variations (DP variation): +6.16R
(By week: 0, 0, 4.96, 1.2)
Broken Break (BB) – (Still being researched and profit not included in results above): +15.69R
(By week: 0, 0, 7.52, 8.17 )
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
I really need to work on my focus. It was better toward the end of the month, but there were some days throughout the month where I was distracted. I was doing other things. Keeping my eye on the chart, but was not really focused and that tends to lead to mistakes or missed opportunities.
This needs to improve. If I am not going to focus, I will stop trading and do what I need to do. Better yet, there is almost never anything that is so urgent that it can’t wait an hour or so until I am done trading. There is no need to do any writing, research, or respond to emails while trading. I only trade for 2 hours. It can wait.
My full focus is required. I trade best when I am constantly commentating the price action. And I can only do that if I am not distracted. Trading is the primary income source, so it deserves the most attention.
The EURUSD Day Trading Course covers this entire method of trading, including getting in the right mental state and staying there.
Here are the prior totals (monthly). Actual charts are in the weekly articles listed within the monthly-total articles:
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.