A sobering reminder this week, that despite the previous bounty of profitable days and weeks the markets can and will work against you in just as frequent a pattern when it wants to.
The last three trades this week never really came good and as they pushed higher I decided to adopt a safety position.
As I have mentioned, although physical stops are not necessary as the positions taken naturally hedge each other, sometimes the market will move reasonably sharply and it is purely a personal decision with what to do in such situations.
For those with large trading banks and correspondingly small risk to profit ratios, leaving the positions open for the maximum term of 3 days is a potential consideration. However, for most, this will not be ideal and such situations will play on the mind. One thing that MRP strongly advocates is a stress-free trading regime, whereby trades are in the market and relatively speaking left to their own devices in that you are not and should not, be actively scanning the screens watching each refresh of the P/L figure on your trading platform going the ‘wrong-way’. So, I have adopted a 3.5% risk margin such that any position close to or beyond this threshold, is closed for a loss.
Herewith results for trades advised by the MRP indicator (shown with *), for this week :
2 winning trades (1 carried over from previous week) + 3 losing / representing an overall loss for the week of £121
Start bank : £1,500
Balance :£1,615 (representing a 8.9% increase on start bank)