This article is Part 1 of a series.
It’s that time of year where we do a quick review of our first quarter performance, and what a quarter it was as the world goes into crisis and FX volatility explodes. Was I able to grab some pips in the process? Check it out!
Basic Forex Trading Stats
| DATE | TRADE IDEA | P/L in pips | P/L R:R |
|---|
| 1/20 | EUR/CAD Fib Short | +69 | 0.86 |
| 1/22 | Descending Channel on GBP/CAD | -140 | -0.68 |
| 2/21 | GBP/CAD Range Play | +120 | 1.10 |
| 2/26 | EUR/CAD Support Breakout? | -96 | -0.58 |
| 3/5 | Downtrend Continuation in AUD/JPY? | +102 | 1.76 |
| 3/12 | EUR/JPY Resistance at Fibs? | +130 | 0.73 |
| 3/19 | NZD/JPY Channel Lower | +344 | 1.98 |
| 4/1 | EUR/JPY Resistance & Reversal? | +284 | 1.64 |
Total Number of Trades in Q1: 8
Wins: 6
Average Gain R:R: 1.35
Losses: 2
Average Loss R:R: -0.63
Largest Drawdown: -0.68%
Win % (winning trades / triggered trades): 75.0%
Average % risk per trade: 0.81%
Total Q1 Blog Profit / Loss in %: +6.25% on 6.50% total risk taken or 0.96 R:R
First, the good. Obviously at first glance, it was a good thing that I was able to come out of arguably one of the worst times for the financial markets with a solid return on risk taken. I did that by catching the big risk-off move sparked by the coronavirus pandemic, which benefited the Japanese yen through February and March, and holding onto the winners for better than a 1:1 R:R.
And the decision to close down my EUR/CAD short early saved me from a bigger loss as that pair rallied further another 1000+ pips after I shut that trade down.
Now the bad. I probably could have done better had I held onto some traders longer, like my AUD/JPY short which dropped another 1000 pips after I closed my position, and my early January EUR/CAD short that dropped another 200 pips before bottoming out.
Yes, I could have been more aggressive given the huge moves, but given the environment of uncertainty and fear we’ve been in, I think being a bit more cautious and taking profits did more good than harm to my account.
Overall, it was a very good quarter for me thanks to the rise in volatility, but will the volatility last? I don’t know. And now that we’re past the initial panic and central bank/government response, will we continue to see big one way moves?
Again, I have no idea. But with the full effects of lives lost and economic damage still not yet seen, I’m going to continue to lean towards being a little cautious in this environment and staying very active with more short-term trades than longer-term ones.
What do you think of my review and how did you do in Q1 2020? Please share your thoughts in the comment box below. Thanks for checking out my blog…good luck and good trading!
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Read more about this trade idea's development over time.
What a quarter it was as the world goes into crisis and FX volatility explodes. Was I able to grab some pips in the process? Here’s a quick review!
I didn’t have the same kind of luck in Q2 as I did in Q1, getting off the a rough start as volatility fell and how I played the market sentiment shift after the initial pandemic shock.