Here it is... the new equity curve for Forex Profit Monster. As mentioned in previous posts, the software that I use to plot the equity curve has a limitation of the number of data points you can use, and as of a couple of months ago that limit was reached. I decided to recompute the curve on a quarterly plot instead of monthly so that I can continue to post the curve on the results blog using the same software.
The funny thing is, the difference in the equity curve can teach a lesson as far as trading discipline is concerned. Look at the graph above and compare it to the last monthly graph:
Do you see how the drawdowns are more noticeable in the monthly graph than the quarterly graph? While technically the information is exactly the same, it shows that seen over a longer time frame the same results seem less volatile. While many small drawdowns can be seen in the monthly graph (every time there is a losing month there is a drawdown in the graph)... there are hardly any visible in the quarterly graph. The only one of any relevance at all is in Q3 of 2010... and even that is extremely small and lasts for only that quarter. Want to take it to the "next level"? Here's a graph of the yearly results:
See how there are NO drawdowns in the yearly results at all?
So what lesson is to be learned here as a trader? With a viable trading method that has a positive expectancy, you CAN'T allow the results of single trades (or even single weeks or months worth of trades) to cause you to lose your focus. If you become undisciplined because you have a losing streak or enter a drawdown, you may miss out on the profits that will help you to overcome the losses. You must keep focused on the "big picture"... or making money over time. Days, weeks, or even a couple of months of losses in a row don't mean anything over the long haul.
With that covered, here are the results for December:
29 trades total
11 wins: 1,251 pips
18 losses: 1,158 pips
Total pips: +93
37% win rate
Avg win: 113
Avg loss: 64
Avg risk/reward ratio: 1.76 to 1
Here are the results by currency pair on the 4 Hour chart:
AUD/USD 2W, 1L +268
EUR/USD 2W, 1L +239
EUR/JPY 1W, 0L +195
USD/CAD 2W, 1L +137
USD/CHF 1W, 2L +42
USD/JPY 0W, 5L (-118)
GBP/JPY 2W, 3L (-126)
GBP/USD 1W, 5L (-544)
And the totals for 2011:
January (-35)
February (-334)
March +869
April +2,168
May +503
June (-811)
July +225
August +221
September +2,227
October +2,634
November +1,286January (-35)
February (-334)
March +869
April +2,168
May +503
June (-811)
July +225
August +221
September +2,227
October +2,634
December +93
That's a total of 9,046 pips in 2011, and an average per month of +753 pips. For more information about Forex Profit Monster (and my day trading system Forex Day Monster), visit the website at www.forexprofitmonster.com.
That's a total of 9,046 pips in 2011, and an average per month of +753 pips. For more information about Forex Profit Monster (and my day trading system Forex Day Monster), visit the website at www.forexprofitmonster.com.
To purchase either system (or both) at a discount, visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less where I list one or two items per week at a discount.
Best of luck in your trading!
Jim
