6th day, no gain no loss…

As you can imagine after reading the title, it was a flat day. Actually, I made a small profit but it didn’t cover the commissions. Let’s see what happened during that day in the EUR/USD and GBP/USD futures:

British Pound

It was a directional day for the British Pound without any big spike or swings as we saw in the previous days.  This was explained by the increase of COVID-19 cases in the US and the expected approval of further help by the FED.

6B 06/20 

It raised almost without stopping until 14:30 where the price was ranging between 1.2387 and 1.2405. In one of these retracements, the algo was triggered and it sent a buy of 5 lots. I wasn’t sure about opening the position considering its morning trend and range. One of the best aspects of using algos is that we remove discretionary decisions and feelings. After entering in the position, like the most part of the times, the GBP/USD futures fell to 1.2374. After that, it rebounded breaking the highs of the day and it reached the 1.2429 level. It couldn’t breach these levels and it went back to 1.2400 where the algo closed the position.

6B 06/20 trade chart

This chart shows more detailed of what I explained in the previous paragraph.

6B 06/20 trade

In contrast with other days, the MAE ($437.50) is around 1/3 of the MFE ($1281.25) and this shows how well the market behaved for the algo I’m using. One of the problems is that the ETD is still high because the algo is not closing with a signal. Until now, the algo has closed according to the time configured.

Euro FX

The Euro vs the US Dollar didn’t have a clear trend. It was a total swing. It seems that the EUR was stronger in the morning while the USD took its place in the afternoon.

6E 06/20

As you can see, and as it was expected, the algo was triggered in a retracement. It performed well during the first hour. After that, the Euro dropped strongly but seems that the traders didn’t believe in this movement and the buying pressure took the price to the point in which the position was open. At this point, it continued to rise to 1.0909 where the dollar strength came back. The position was closed at 17:08 London Time

Trades and account balance

I didn’t get profit in both trades. I lost $398.75 in the EuroFX trade including commissions and I won $395.75 in the British Pound also including commissions.

08/04/2020 trades

I shouldn’t be upset… I made a profit without considering commissions. At the end of the day is not real money and this is good learning and I would like to remember that in my opinion the commissions and the slippage should be included when you are backtesting a system. In my experience, if the system is not good enough this will make the difference between making profit or loss.

Account Balance

One of the conclusions that I found in the first 6 days is that probably I should implement a fixed take profit or maybe consider a trailing stop. It’s early to say but probably I will run some tests to see if the statistic ratios are better than my current algo.

Thanks for reading this post!

#algorithmic_trading, #Trading, #Euro, #EUR, #GBP, #British Pound, #USD, #EURUSD, #GBPUSD, #Dollar, #performance, #profit, #loss, #FED, #COVID-19, #Robotrader