Thursday, June 11, 2009

Up in FX, Down a smidge in NQ

Not a bad day, things were much choppier in the currency markets than yesterday all out directional slam fest. Took some pretty nice losses early in the day but kept with it and made it all back and then some. In fact, I had 4 losses in a row this morning... one winner erased them all. Thats the kind of stats I want to get behind. Ended out the day with +46 pips.

In the NQ it was not a bad day (ended down a point) but I just didn't get fills on 90% of the moves and the ones I did get in didn't really go anywhere and at the end of the day I caught a smaller loser for -1.5.

I am getting much better on the execution of these trades and the analysis. I had to work out kinks the hard way earlier this week with losses to figure out I needed to relax stops, and focus on the good directional moves, but i'm getting things nailed down. Furthermore, the currency markets are proving to be really good practice on the entries, management, and analysis in getting me back on my feet.

4 days of losses isn't anything i'd brag about - but if it was for a purpose and it taught me something its fine by me.

Trade Results:

NQ: -20.00

4 comments:

Richard Todd said...

as a non-FX trader, I have to ask: is there an easy mental conversion from pips to dollars, trading whatever the FX-equivalent of 1 contract is? You report futures in dollars and FX in pips... so I can't compare them.

Either way, 46 of them, however much $ that means, sounds good!

Matt said...

think of 1 pip like 1 tick.

Comparable size in the forex market would be trading 100,000.00 size in which case 1 pip = 10.00.

While there are exact differences in the actual conversions (some currency crosses might be worth more or less than 10.00, the EURJPY for example is worth 10.24/pip, the USDCAD is 9.07/pip but more or less they are all worth round about 10.00/pip using 1 standard lot sizing (100,000).

1 Standard lot of 100,000 is the same as 1 e-mini contract in the ES more or less.

I will be trading 10,000 size or 1/10th of a standard on that 100.00 account so 1 pip = 1$.

So on the sizing that i'll be going live with 46 pips = ~46.00. But on a 100.00 account? That wouldn't be a bad days work now would it? ;)

GulzaarFX said...

I had a pretty rough day in FX too. I saw a really big head and shoulders forming in the 4 hour chart on the EUR USD and I tried an aggressive entry. I was positive for a while but then got stopped out when the market ultimately decided to just go the other way. Which were your losing/winning trades yesterday? Thanks

Matt said...

Mostly to the long side. I think I got stopped out both times trying to short.