Forex Analysis

Forex analysis mostly concentrate on the mt4pips result which is published by each individual. From there, we would like to analyse whether a particular strategy is used would be suitable for us to follow and learn from it.

 

There are a few issue that need to be in consideration while reading people's statement from their forex trading experience. We definitely could not simply follow their strategy just because of they are making money. As it involves the following issue:

 

a) does not use stop loss

b) does not use target profit

c) enter trade anytime

d) how many pips per trade of winning and losing

e) daily trade or weekly trade

f) does it trade news release

 

Wow, there are a lot of homework. There is no shortcut in life. When we use shortcut or asking people about buy and sell of this currency pairs,

 

a) we definitely do not question why do they make this decision, even if they answered us, it is our decision whether to believe them or not.

 

b) when they answer buy or sell, just telling yourself, in M1 timeframe, there are a lot of buy and sell decision making. Are they telling you to buy the whole day or just for an hour. By then, you would know the truth that there is no 100% accurate for every time. If not, you and I already Billionaire.

 

 

Let's Study the following :

Click here for the statement : mt4pips.com/profitablefx

1. Starting Mar 15, 2010 Ending Apr 02, 2010 (Estimate 15 days)

 

2. Total Trades           = 375 

    Average Daily Trade = 25

    Total Cancel Trades = 118 (31.4% from total trade)

    Total Trade losses   =   60 (16.0% from total trade)

    Total Break Even     =   26 (06.9% from total trade)

 

    Balance Trade         = 171 (45.6% from total trade)

     Decision Maker Correctness = 45.6%

   

 

3. Initial Investment = USD2500

    Current Equity     = USD3315

    Profit                 = USD  815 for (15days).

     Daily Profit          = USD54.33 for 25 trades.

 

4. Spread Losses assuming 2pips per currency

    Actual Daily Trade   = (171 + 60) / 15 days

                               = 15.4

    15.4 trades x 2 pips = 30.8 pips losses daily

    30.8 pips x 15 days = 462pips losses so far

     Yearly (22 days x 12months x 30.8pips) = 8131.20pips lose in action.

 

 

5. Currency Pairs = GBP/JPY, GBP/USD, AUD/USD, EUR/CHF, EUR/USD, USD/JPY

 

6. Trading Hours = Mostly 24 hours. Probably Using Expert Advisor with modified target profit function.

 

7. Target Profit is used for specify a profit as well as specify the losses

 

8. Maximum Winning Pips per trade = 60, Maximum Losing Pips per trade = 123

    Not good in detection for Pips. Slow Reaction on losing trade.

    We won't know how far would it go for a losing trade. What happen to the Target Profit?

    Time located : 2010.03.16 15:22

 

9. Method Identified : SCALPING