Another solid week for the EURUSD day trading strategies. There was lots of opportunity during the 2 hour window that I trade (approximately 8:30 to 10:30 AM EST). 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:

• Potential Profit was +17.125R for the shortened 4-day trading week. This is if all the valid trades were taken, and no invalid trades were taken. There was another 5R in the half-hour after I stopped trading on Feb. 17 (I stopped trading early).
  • “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.
    
• My profit: 14.035R
  
  
• I recorded my day trading session on Feb. 11 and Feb. 17 if you want to watch me trade and talk through the process.
  
  
• 9 wins / 12 trades = 75% win rate on all potential trades (that’s high…most weeks are around 50%).
  
  
• 82% efficiency (14.035/ 17.125)….not including the trades that occurred after I stopped early that day.
  
  
• Reward to Risk (based on all potential trades):
  • Winners: 2.5, 2.35, 1.9, 2.075, 1.91, 2.2, 2.5, 1.6, 2.5
    = 19.535 / 9 = 2.17
  • Losers: -1.3, -0.7, -1
    = 3 / 3 = 1
  • 2.17 / 1 = 2.17:1
  • I exited a number of trades early this week. It was not required. The 2.5:1 would have been hit. So my R:R was a little lower than it should be this week.
• Trades not taken: 2.5R (not including trades missed after I stopped trading early one day).
  
  
• Trades taken that shouldn’t have been: 0R, but I did exit a few trades early, missing out on 0.9R.

A lot of these stats you can track in the free and downloadable forex day trading log (Excel spreadsheet).

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: +9.175R
  (Daily totals: 2.075, 4, 3.1)
  
  
• Snap Back strategy profit: +2.95R
  (1.05, 1.9 )
  
  
• Double Pumps strategy profit: +5R
  (2.5, 2.5)
  
  
• Double Pump Variation strategy profit: 0R

Daily Charts and Trades

Charting provided by TradingView.

My Focus For the Upcoming Week

This week I bailed on a couple of trades early. I also skipped a couple of trades. These things are going to happen from time to time, but it is important to note the psychology that is going on. By bailing and skipping trades, I was showing a lack of confidence in my system. I know it works, in all conditions (assuming there is enough movement to trade), and yet because things were a little quiet I decided that I knew better than my system and decided to alter the trades a bit.

This isn’t a problem yet, just something I noted. Overall, it was a really good week, and the mistakes were fairly minor. But it was an early reminder that my only job is to follow my strategy. I am my strategy’s bitch; I am a button pusher. I get my cerebral exercise and input when I develop the system, not while I am trading it. While trading, my mental exercise comes constantly talking myself through the price action so I am ready to pounce on valid strategy trades.

My Action Step: This weekend I will go through several months of charts, with all different types of daily conditions, and re-prove to myself that I didn’t need to alter much while I am trading. Just trade according the system.

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.