As you can see from the sharp rise in the equity graph above, May provided an excellent increase to my account! After what's been a relatively "sleepy" year so far, one of the dramatic price movements that I've been expecting to happen this year happened during May. It's important to understand that when trading this system (or any trend following system) you will go through periods where you have small wins, small losses and break even times. It may test your discipline to stick to trading during these times, but if you can do it you can reap the rewards in months like May.
If you are familiar with the concept of black swans (if not, you should read a copy of Nicolas Taleb's book "The Black Swan - The Impact of the Highly Improbable") then you're already familiar with how FPM generates profits. It basically provides small returns until an unexpected major market move (black swan) occurs. Most traders and investors are caught off guard during black swan events and end up losing a lot of money. FPM is designed to capitalize on these events, and May 2010 was one of those months.
I don't usually make predictions about the market (well, OK, I sometimes do, I just don't allow those predictions to influence my trading) but my personal feeling is that May isn't the only month like this we're going to see in 2010. With all of the economic problems in Europe continuing to grow, and the economic problems we continue to see here in the U.S., I'm reasonably sure there will be more "black swans" not too far away.
The other nice thing about FPM is that it doesn't rely solely on "black swans" for profits... when the day comes that we do see a real recovery and a new "bull" market, I'll be in a position to profit from those sustained trends as well!
OK, let's get to the details of the May 2010 results (from the 8 pairs I trade on the 4 Hour chart):
17 total trades
8 wins: 5,485 pips
9 losses: 888 pips
Total: +4,597 pips
47% win rate
Avg win: 685 pips
Avg loss: 98 pips
Avg R/R: 6.98 to 1
Results by pair:
GBP/JPY - 1 W, 1 L +1001
EUR/JPY - 1 W, 2 L +754
AUD/USD - 1 W, 1 L +695
GBP/USD - 1 W, 1 L +676
USD/CHF - 1 W, 0 L +635
EUR/USD - 1 W, 2 L +390
USD/CAD - 1 W, 1 L +229
USD/JPY - 1 W, 1 L +217
Here are the results for the year 2010 so far:
January: +823
February: +669
March: +434
April: (-446)
May: +4,597
Total: 6,077 pips
Avg: 1,215 pips per month
For more information about Forex Profit Monster (and the day trading system Forex Day Monster), visit www.forexprofitmonster.com.
To purchase FPM or FDM visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/
That's it for May... hope your month was as profitable as mine and here's to more pips in 2010!
Jim
www.forexprofitmonster.com
http://myworld.ebay.com/jimsgr8stuff4less/
