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(The portfolio of currency pairs being traded on the 4 Hour chart with Forex Profit Monster consist of:
EUR/USD, USD/CHF, USD/JPY, GBP/USD, USD/CAD, EUR/JPY, AUD/USD, GBP/CHF, AUD/CAD.
This portfolio will remain the same each quarter unless stated otherwise.
All results INCLUDE transaction costs... THIS IS REAL LIVE TRADING so all costs, spreads, slippage, interest rate swap, etc... are included in the results.)
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As promised in the last post, here are the results of Forex Profit Monster from my fund performance from 2013. For those of you who have been following the results of FPM for the past several years, remember there are a couple of differences now. First, the GBP/JPY pair in the portfolio has been replaced by the GBP/CHF pair. For those of you with "inquiring minds" this was done to balance the correlation in the portfolio to keep it from being too Yen heavy. As mentioned previously it definitely cost me some money during 2013 as the GBP/JPY pair has had some huge uptrends since mid 2012 and the GBP/CHF has only had some minor trends during 2013, but I will accept a smaller return for less correlation and downside volatility. I will also most likely be adding the GBP/JPY pair back into the portfolio at a later date once the size of the account allows for trading more pairs. Speaking of which, due to growth in the value of the account I've also added another pair to the portfolio; the AUD/CAD. This pair was selected to keep the portfolio balance in tact. The currency pairs being traded on the 4 Hour chart with Forex Profit Monster now consist of:
EUR/USD, USD/CHF, USD/JPY, GBP/USD, USD/CAD, EUR/JPY, AUD/USD, GBP/CHF, AUD/CAD.
This portfolio will remain the same until otherwise noted.
The other change being made to how the results are posted is that instead of posting the results in pips won/lost, I'll be posting the equity gained/lost by quarter. The figures used include open equity on trades and therefore I use "mark to market" accounting of the equity value of the account at the end of the trading month. This means the value can be more or less than the current cash value of the account, but is the value if all open postions were closed out. This is how most money managers provide statements for their clients and is also how I track my performance for this fund. It is also the easiest way for me to transcribe the results to this blog without much extra effort. This will allow me to post results in a timely manner and keep those following my progress with FPM from losing interest due to lack of information being posted.
One more note... all results INCLUDE transaction costs... THIS IS REAL LIVE TRADING so all costs, spreads, slippage, interest rate swap, etc... are included in the results.
With that out of the way, here are the results of Forex Profit Monster for 2013...
1st Quarter 2013: (-0.0009%)
86 total trades
86 total trades
Win rate: 20.93% Max Drawdown: 3.83% Average Risk/Reward ratio 2.72 to 1
Yes, you read that correctly. A loss of 9 one thousands of a percent LOL. If you are new to trading you're probably wondering why I bother. Three months of trading, almost 100 trades, and NO PROFIT... plus all of the transaction costs (remember, these are included in the results so no extra money was paid out to achieve these results). Well the answer is easy. You'll learn that being profitable in the markets means being patient. No one wins all the time. In fact, most of the best traders LOSE most of the time. You have to wait for certain market conditions over short periods of time to collect your profit. To be a good trader isn't really that exciting... in fact if you're doing it correctly it should really be quite boring. The best way to trade is defensively... lose as little money as possible while waiting for your gains. If you're thinking about getting into trading for the excitement learn to adjust that viewpoint quickly or don't even bother trading!
What you should be taking away from these results is that I was able to lose almost 80% of my trades but really not lose any money.
Here is a graph of the equity curve of the 1st Quarter of 2013. This graph only shows closed trades, not open equity, which is why it varies slightly from the information above. I have also removed the cash value on the Y axis for privacy reasons. The numbers on the X axis are the number of trades executed completely (opened and closed). As you can see from comparing this equity curve to the information above, there are 5 profitable trades open being carried into the 2nd Quarter of 2013:
That's it for this post... I will post the results of the second quarter of 2013 in the next post.
For more information about Forex Profit Monster (and my daytrading system Forex Day Monster) vist my website at www.forexprofitmonster.com. Or you can visit my eBay page where I list one or two systems per week at a discount from the website pricing: http://www.ebay.com/usr/jimsgr8stuff4less.
Thanks for reading and best of luck in your trading!
Jim
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