Revision of trading strategy, plan & mindset = Revival of portfolio

Last updated on January 2nd, 2017

Hi all!

As per the previous post I posted today (Bulking my portfolio with OCBC BCIP and Oanda FX), you would have already know that I have boosted my total investment into my Forex Account as I now have gotten more confident in making it one of my sources of income.

Trading has been one of my interests since I can remember. Not for the money but for the challenges and the never-ending lessons that I encounter with trading. But of course, who doesn’t like getting paid on top of winning the market? Working as a full-time trader… Sounds good?

Since I revised my trading strategy, plan and mindset on June 27, 2014 after a caustic streak of losing trades, I have gotten near 50% compounded returns till this month. (and of course I am feeling proud and shocked of myself)


Some Statistics (27 Jun-present):

Total Trades: 8
Profitability: 75% (6 winning trades)
Average Win: S$14.20
Average Loss: -S$7.34

Best Trade(S$): (Aug 24) 37.86
Worst Trade(S$): (Jul 18) -10.97
Average Trade Length: 7 days

Profit Factor: 5.80
Standard Deviation: S$15.69
Sharpe Ratio: 0.55
Z-Score (Probability): 1.63 (89.68%)
Expectancy: 30.5 Pips / S$8.65
AHPR: 5.55%
GHPR: 1.28%

So here are some brief takeaways on what to do when you are on a deep losing streaks in trading:

  • Stop for a moment as of now, and understand that you will wipe you account off if you do not. It is because there is a 90% chance that your emotions and negative mindset (fear, greed, panic, seeking for revenge) are the ones triggering the trades and not you anymore. The worst thing that you never want to happen here is to end your trading career making that last trade with ‘It’s all in or nothing now’…
  • Revise your trading plan- What are the goals you are trying to achieve by trading; Have you been trying to meet your next milestone or are you just retracing back to where you were; Are you still reading new stuffs to broaden your knowledge and keeping you inspired?
  • Revise your trading strategy- Are you trading according to your strategy; Why are you not; Are you trying out new strategies on your real account without testing it on demo first; Does this strategy suits you based on trade holding period, attention required for each trade, the risk intensity, your understanding of the FX pair?
  • Revise your mindset- Are you purely seeking out revenge in the market after losing this much? Is it worth it to even pay in cash for your emotions to control you before you regret later on? Are you consistently reading new stuffs to broaden your knowledge and keeping you inspired?

Revise your Trading plan every 10 months, Trading strategy every 10 weeks and Trading mindset every 10 days to make the best of your trading system.

Does anyone here trades or tried trading The Foreign Exchange Market? How long did you trade before you became profitable or why did you quit trading Forex? Would love to hear from you guys!

The Independent Abecedarian


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