EURUSD and EURJPY since January has gathered +3461 pips for us. Rest of the pairs on the other hand brought the overall total down. GBPUSD out of all was the worst offender. Charts below show the comparisons between EURJPY & EURUSD and all pairs ( including EURJPY and EURUSD ).
Chart below shows cumulative pips for all pairs and EURJPY & EURUSD combined. These two pairs alone surpass performance of all other pairs. This chart is self explanatory and you can click on image to enlarge.
Next up is the Account growth comparison. This is very realistic and I took all measures to make it that way. I started off with recording initial Stop Loss for all orders. Then I calculated Pips value for each pair based on the entry price at that time. 1 pip is not simply equal to $1, by calculating Pip Value we can identify the correct Stop Loss per trade. Based on %risk, I then calculated the $ value of risk per trade based on current equity. This was then divided by Stop Loss to calculate number of lots. This resulted in lots that were not multiples of 3, hence they were then adjusted slightly to match “3 lot” method. Two factors I didn’t consider were commission and swap.
Below is the comparison between profit targets. When considering all pairs together 1st Profit target is the most profitable, however if we consider EURJPY and EURUSD alone we see that it is worth trading 3 lots method on those pairs.
Chart below compares 1 Lot method vs. 3 Lot method based on individual pairs. Overall it is profitable to trade with 3 lot method, though it is also profitable if you chose to go for 1 lot money management method. 1 lot method simply requires to open trade with 1 lot having same Stop Loss and 1st profit target. This chart also shows profitability of each pair.
Next chart list total pips from week to week. I don’t think this chart requires any explanation expect that we had one quite a negative week however overall the month was positive.
The last chart in the series shows Account Growth for EURJPY and EURUSD combined for different levels of risk.
Based on the data above it is quite clear that two pairs stands out. You may want to start trading these pair alone, which is not wrong, but personally I will only allocate extra %risk to these pairs and trade other pairs with less overall risk. GBPUSD, though it may seem like a bad apple among others, does have potential. By minor tweaking and with analysis I hope to change it back in our favor.
A variation that is still under testing is to move Stop Loss to Break Even soon after first Profit Target is reached. This analysis would take longer to complete since I’ve to manually look back at each trade.
I am also testing an Intra-day strategy which I happen to notice while watching charts. This method is simple yet powerful and I may open up a chat room for it. As usual it doesn’t require any indicators.