Finally, a much better month in Forex.
Before we get to June’s numbers, here is a short reminder of the results from May. The full report from May can be found here and you can get the last several months in a row vertically by clicking here and scrolling down.
Tradesight Pip Results for May 2012
Number of trades: 36
Number of losers: 23
Winning percentage: 36.1%
Worst losing streak: 6 in a row (May 20-25)
Net pips: +10
Reminder: Here are the rules.
1) Calls made in the calendar month count. In other words, a call made on August 31 that triggered the morning of September 1 is not part of September. Calls made on Thursday, September 30 that triggered between then and the morning of October 1 ARE part of September.
2) Trades that triggered before 8 pm EST / 5 pm PST (i.e. pre Asia) and NEVER gave you a chance to re-enter are NOT counted. Everything else is counted equally.
3) All trades are broken into two pieces, with the assumption that one half is sold at the first target and one half is sold at the final exit. These are then averaged. So if we made 40 pips on one half and 60 on the second, that’s a 50-pip winner. If we made 40 pips on one half, never adjusted our stop, and the second half stopped for the 25 pip loser, then that’s a 7 pip winner (15 divided by 2 is 7.5, and I rounded down).
4) Pure losers (trades that just stop out) are considered 25 pip losers. In some cases, this can be a few more or a few less, but it should average right in there, so instead of making it complicated, I count them as 25 pips.
5) Trade re-entries are valid if a trade stops except between 3 am EST and 9 am EST (when I’m sleeping). So in other words, even if you are awake in those hours and you could have re-entered, I’m only counting things that I would have done. This is important because otherwise the implication is that you need to be awake 24/6. Triggers that occur right on the Big Three news announcements each month don’t count as you shouldn’t have orders in that close at that time.
You can go through the reports and compare the breakdown that I give as each trade is reviewed.
Tradesight Pip Results for June 2012
Number of trades: 23
Number of losers: 9
Winning percentage: 60.8%
Worst losing streak: 3 in a row (June 26)
Net pips: +275
We finished the May Results report with the line “The turning point lies ahead.” Turns out, it was June 1.
For the first time in a while, Forex ranges were stable/improved for the month. Not a ton, but it does suggest a turn. We ended up with a few days where no trades triggered because the ranges were still small, so we only had 23 trades for the month, which is unusual. However, it was a really clean month. We had 3 losers in one day, and other than that, we only had 6 losing trades for the month, and many of the winners carried over a couple of days and led to bigger gains, which is what we like to see. Our system is built around small losses and letting winners play out when they do, and this definitely shows the value of that approach. Summer can be a slow time for Forex, especially June and July, but after months of a stagnant market waiting to see how Europe would dig out of its problems, the fact that the picture might be clearing up is positive for Forex trading.
The ranges didn’t expand enough to add more than a couple of pips to the 6-month average daily ranges on some of the pairs, so we can’t get too excited yet, but it does feel like maybe May was the turning point and end of the doldrums for now. If July stays good, then the outlook for the rest of the year is much improved from the first half.
On to July…