I am testing a system in demo for a combination of fundamental analysis and technical analysis based on mean reversion and a few other trend direction indicators including retail trader sentiment. The first two weeks have worked well. Paper trading only the first week and placed trades on a demo account this week just gone.
Early days but the results are going well so far.
4 hour charts - only trade when fundamentals are opposite to the retail trader sentiment
Determine watch list on the weekend after fundamental updates are complete
Trade 1 - enter at start of week with a small position in direction of fundament trend. 0.2% risk per pair. Catches the big move weeks that do not retrace - small trade risk.
Trade 2 - enter with limit orders on retracements against the overarching fundamental trend direction. 0.8% risk per pair. Catches the retracement for better entries when there is a retracement back to a bank/institutional order level - larger trade risk.
Results are as follows:
Week 1 - paper trading +7.9%
Week 2 - demo trading on live markets £1005 profit on £35000 demo account +2.8%
Closed trades
Open trades
Watchlist for the week. Just the one for the list this week as things change.
Watchlist for this week. Some strange changes. JPY getting weaker against most majors again but the markets are correcting against it.
Watchlist for the week ahead.
Away for the week last week so no watchlist but positions were still in place from the week before.
Performance as follows. 918 pips gain for the two weeks. 3:1 and 5:1 targets hit on NZDJPY longs.
Some nice moves this week. 412 pips average per entry on the watchlist.
GBPJPY was a stand out with 192 pips average win.
Watchlist for the week ahead.
Results for last week's watchlist. Bit of a mixed week but still positive.
audjpy -> -60 and -20 pips
cadjpy -> +15 pips and + 15 pips
chfjpy -> +26 and +46 pips
eurcad -> +4 and +87 pips
eurgbp -> +4 and +15 pips
gpbjpy -> +4 pips and +4 pips
gbpusd -> +61 pips and +6 pips
nzdjpy -> -94 and -43 pips
nzdusd -> -62 pips and -44 pips
usdcad -> +41 pips and +16 pips
usdchf -> +38 and +38 pips
Total = +93 pips
Watchlist for week ahead completed.
Lots of opportunity starting to come into play.
Full watchlist for the week ahead.
Part way through selections for this week. Starting with the following and have the LFX checks to undertake. The follower where shortlisted on Sunday night with further refinement to run through. Might end up with none again at the end of the refinement.
Nothing new to report on the watchlist front. USDRUB stopped out. Very slow on the opportunities front at the moment.
Another dull week on the Watchlist front!! Nothing weak enough to put against the number of strongs and quite a few at neutral.
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