Systems and testing results.

As I sit on a balmy Sunday evening in beautiful Columbus, I checked the charts and saw absolutely no gaps. I am kind of surprised, however I quit trying to figure it all out. Who cares? Results matter, and nothing else. Period.

I have been trading nothing but a Price Action system lately. After six weeks, I have some decent results. You have to keep in mind that I also have a job, so sometimes I miss a trade or two.

Anyways here we go:

Week 1: +1.20%
Week 2: +0.50% (NFP week)
Week 3: +0.74%
Week 4: +2.35%
Week 5: +1.82%
Week 6: +1.24% (NFP week)

Results in this testing period: +8.12% Rate of Return(6 weeks)


The reason I added notes of Non-Farm Payroll weeks is that I often trade quite a bit less during them. For example, on week 2, I got all of that profit before the end of Thursday. I hardly ever trade those Fridays. However, I decided to on week 6's NFP, only because I got a really, really, clean setup on the USD/CHF pair.

The thing about results like this is that I believe this is what is meant by "Great returns are possible in the Foreign Exchange." To me, this is realistic to obtain on a regular basis. (At least it's what I have found in trading in general.)

So you have to think a little here. If you are happy with a 15% return on your Mutual Fund, then these results are pretty impressive. I am going to make a lot of money with these results. It might take a while, but compounding interest is going to do quite a bit of the work for me. I love it.

Part of this is because I actually had someone ask me recently to trade an account for them. I am actually in the middle of "tweaking" this system, no matter if I trade his money or just my own.

I just wanted you guys to see that it is possible, and it doesn't have to be 50% a month to make money.

Somewhere in the past I posted that a 4% return a month on $500 over 10 years turns out to be along the lines of $58,000. Funny, that's about where I end up a month....somewhere between 4 and 6%. No bitching here.

It's been a long road learning this stuff. The funny thing is that I have learned that trading the Foreign Exchange really IS simple. It's the fight with ourselves that is so difficult.



Hmmmmm, interesting spot with the GBP/USD pair. I see 1.94 soon. I'll wait for confirmation.....but I see it coming.

Have a great week trading!