Forex Profit Monster Results 2013 2nd Quarter

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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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The second quarter results for Forex Profit Monster were much better than the first quarter, showing a gain of almost 21%.  April and the first part of May were drawdown periods, but good trends were caught across almost all pairs in mid-May. Some of these trends carried over into June and that was the month that saw most of the profits realized.

Here is the FPM equity curve for the 2nd Quarter of 2013:

2nd Quarter 2013: +20.77%

103 total trades  Win rate: 31.06%  Max Drawdown: 10.12%  Average Risk/Reward: 2.73 to 1

Again, the chart above and the information regarding total trades don't match exactly due to some open equity trades being carried into the 3rd quarter.

You'll see that our win rate increased from the 1st quarter to 31.06%. While I still lost almost 70% of the time, I managed to earn close to a 21% return for the quarter.  This is because my risk to reward ratio stayed static while my win rate increased by about 11% from Q1.  The drawdown also increased, but only by about 7%.  I consider a 10% drawdown a small drawdown for my trading, especially when you look at return v. drawdown (a 3 to 1 ratio).  During prolonged losing streaks I expect to see drawdowns as large as 50-60% across time. While this won't happen very often, it is possible for the risk amount I take (on average about 1.5%).  To keep drawdowns smaller simply reduce the amount of risk.  Cutting the risk in half (to 0.75%) will reduce the drawdown by about the same.

As mentioned in the previous post, you must be patient and wait for your profit opportunities.  The months of May and June were abundant with those opportunities, even if January, February, March and April were not.  Here is the equity curve for Forex Profit Monster for the first two quarters of 2013 in total:

This equates to a 20.67% gain on the portfolio after the first 2 quarters of 2013.

Remember, this equity curve would be even higher but does not include the open profit trades carried into the 3rd quarter.

The next post will feature the results of the 3rd quarter of 2013.

Thanks for following along and best of luck in your trading!

For more information about purchasing Forex Profit Monster for your own trading (and also my daytrading system Forex Day Monster), visit my website at www.forexprofitmonster.com.  Or you can visit my eBay page (http://www.ebay.com/usr/jimsgr8stuff4less) where I list one or two systems per week at a discount off the regular price on the website.

Jim
www.forexprofitmonster.com