The EURUSD day trading strategies produced a potential profit of 26.41R this week. There was an additional optional trade that would have produced another 2.5R, bringing the total to 28.91R for the week. The strategies used, and their statistics for the week, are outlined below.
The profit potential is based on trading a 2-hour window between 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 +26.41 to 28.91R for the week. This is if all the valid trades were taken, and no invalid trades were taken.
- “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.
- In other words, if risking 1% of the account per trade, the potential profit from these strategies this week was 26.41% (less commissions), trading about 2 hours per day.
- This week, on Friday (May 7) there was an optional add-on trade that produced another 2.5R. An “add-on” is holding a trade and then adding to the position when another valid setup occurs. It is allowed, but not required according to my personal trading rules.
- I recorded my day trading session on Feb. 11 and Feb. 17 if you want to watch me trade and talk through the process.
- 14 wins / 19 trades = 72% win rate if the strategy rules were followed.
- Reward to Risk (based on all potential trades):
- Winners: 2.31, 2.51, 2.5, 2.75, 2.97, 2.8, 2.5, 2, 0.3, 2.52, 2.42, 2.5, 2.5, 2.48 / 14 = 2.36
- Losers: 1.12, 0.69, 0.87, 1, 0.65 / 5 = 0.866
- 2.36 / 0.866 = 2.7:1
- Missed trades cost me 5R this week.
- Other mistakes cost me 0R.
- Typical leverage is about 30:1. Ranging from 20:1 to 50:1, depending on the stop loss distance in pips.
A lot of these stats you can track in the free and downloadable forex day trading log (Excel spreadsheet).
EURUSD Day Trading 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: +14.73R
(Daily totals: 2.5, 2.5, 4.94, 2.29, 2.5 )
- Snap Back strategy profit: +5R
- Double Pump strategy profit:+9.18R
(0.83, 0.3, 8.05)
- Double Pump Variation strategy profit: +0R
- Triple Pump: 0R
Daily Charts and Trades
Charting provided by TradingView.
My Focus For the Upcoming Week
I noticed a compulsion to take non-strategy trades this week. I know the strategies produce great results if I just follow them, but this week I had strong urges to just take random trades…especially when there was movement but no valid trade setups. This is definitely something to be aware of and to address before it becomes a major issue. Possibly it was just my mood on a couple of days this week, but I will do a brief parts negotiation on Saturday just be sure and to address any issues that may be present there.
On Sunday, I will go through my March charts. It’s a good exercise just to see so many patterns in different contexts, and to also note any trades that were missed in my end-of-day review.
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.