Before we get to October’s numbers, here is a short reminder of the results from September. The full report from Septembercan be found here and you can get the last several months in a row vertically by clicking here and scrolling down.
Tradesight Pip Results for September 2014
Number of trades: 23
Number of losers: 9
Winning percentage: 60.8%
Worst losing streak: 2 in a row
Net pips: +30 pips
Reminder: Here are the rules. Visit stockpair.com for details.
1) Calls made in the calendar month count. In other words, a call made on August 31 that triggered the morning of September 1 is not part of September. Calls made on Thursday, September 30 that triggered between then and the morning of October 1 ARE part of September.
2) Trades that triggered before 8 pm EST / 5 pm PST (i.e. pre Asia) and NEVER gave you a chance to re-enter are NOT counted. Everything else is counted equally.
3) All trades are broken into two pieces, with the assumption that one half is sold at the first target and one half is sold at the final exit. These are then averaged. So if we made 40 pips on one half and 60 on the second, that’s a 50-pip winner. If we made 40 pips on one half, never adjusted our stop, and the second half stopped for the 25 pip loser, then that’s a 7 pip winner (15 divided by 2 is 7.5, and I rounded down).
4) Pure losers (trades that just stop out) are considered 25 pip losers. In some cases, this can be a few more or a few less, but it should average right in there, so instead of making it complicated, I count them as 25 pips.
5) Trade re-entries are valid if a trade stops except between 3 am EST and 9 am EST (when I’m sleeping). So in other words, even if you are awake in those hours and you could have re-entered, I’m only counting things that I would have done. This is important because otherwise the implication is that you need to be awake 24/6. Triggers that occur right on the Big Three news announcements each month don’t count as you shouldn’t have orders in that close at that time.
You can go through the reports and compare the breakdown that I give as each trade is reviewed.
Tradesight Pip Results for October 2014
Number of trades: 34
Number of losers: 18
Winning percentage: 47%
Worst losing streak: 4 in a row
Net pips: +80 pips
Ranges picked up and we went back to full size this month with mildly profitable results. I should point out that the raw numbers don’t account for the fact that we had 3 “stop outs” losing 75 pips on a day that we were half size or less ahead of the Fed announcement for the month, so realistically, this was a much better month than the raw numbers reflect. We had a couple of trades carry over between days because they were working, which is what we like to see, and we look forward to more of that now that the Forex markets seem to be moving again. The 6-month average daily range on the EURUSD rose from 59 to 69 in October, and the GBPUSD went from 63 to 73. That’s a 10 pip bump in the 6 month averages, which is pretty solid and represents a better trading environment, but we are still seeing too many days a month with well under the normal 120-140 pip ranges that we like to see on those pairs. It’s also why we had 34 trades trigger for the month, which is getting back toward normal, versus the 23 we saw in September. In other words, the Forex market is coming back, but we need to see some consistency.