Futures
Futures has taken a substantial dip in performance the past week. I was overtrading, revenge trading, sizing up on MNQ, and all the other things I need to deliberately work on more.
To reprimand myself, I am down to 1 MNQ contract, which is only to be traded after Wednesday, provided that I can work Monday and Tuesday paper trading like a professional. Until I prove my discipline is that of a professional, I will focus on studying and practicing within my rules.
Some new rules I’m developing are based on laws I’m observing, and documenting more carefully than in the past. I aim to store these in a single location which can be easily browsed and modified in the future as the overall trading system.
Forex
Upon investigating some of the algorithms, USD/JPY has struggled immensely for some reason (hopefully it isn’t my fault for the slight modifications I made last week) and the rest have struggled the same as usual.
As of now, I am shutting down the live accounts because my largest one is already down over $70 from the original deposit of $550. This is not acceptable.
The demos will continue to run for testing purposes, but I’m experimenting on AUD and GBP. I’ve changed the algos to run the inverse of what they were running before. So now when a long signal is generated, they will go short with the original profit target being the stop, and the stop being the profit target. This will result in trades where I earn 6 pips and risk over 20, but the rate at which they are failing cannot be overlooked.
Hopefully this change teaches me something, and the best result would be a significantly better performing algorithm, so I can run it live. The risk of ruin needs to be evaluated still, because volatile markets may destroy an account that is risking so much for such small gains.