Before we get to October’s numbers, here is a short reminder of the results from September. The full report from September 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 September 2012
Number of trades: 32
Number of losers: 21
Winning percentage: 28.1%
Worst losing streak: 5 in a row (middle of the month)
Net pips: -130
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 October 2012
Number of trades: 24
Number of losers: 16
Winning percentage: 33.3%
Worst losing streak: 5 in a row (middle of the month)
Net pips: -100
A record for the Tradesight service. Two months in a row with negative returns on Forex. This has never happened before, but I also like the fact that although the raw data doesn’t reflect it, we have remained half size the last two months. This is an extraordinary time for the markets and certainly things are duller than we have ever seen them. Ranges continue to diminish across the board, but I do think that the fiscal cliff situation will be resolved and help with getting these markets back together. In the meantime, I’d rather be limited in size and trading less (only 24 triggers in October versus 36 in September) when things are light. Let’s get through the next month or two and then things should improve.