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
