Performance Review 1st year prop trading

Here are the audited performance metrics for my 1st year of prop trading:

Weekly Forex outlook 12 June 2016

I will be adopting additional risk management leading up to the UK referendum on Thursday 23 June. Capital risk (position size) for GBP pairs will be reduced by 50% for all trades taken in the next 2 weeks. This will apply to my Growth and High Risk account. These are the currency pairs that I watching for next week:

EURAUD – Support at 1.5200 has been holding up last week but price action is still showing a lot of selling pressure. A daily close below 1.52 could be a sign of support breaking. If support is broken then I will be looking for opportunities to sell. Alternatively if there is a daily close above 1.5300 then I will be looking for opportunities to buy.

GBPJPY – Support at 151.50 was tested on Friday and price finished the week above it. This is a key level to watch because a break below this would mean a new yearly low for this pair. If there is sign of strong buying pressure above this level then I will be looking for opportunities to go long.

USDCAD – 1.2830 support has been taken out and now it could be acting as resistance. If there is a pullback to this level again then I will be looking for signs of strong selling power below resistance to enter short.

NZDUSD – On the 4 hour chart, there is a possible continuation long trade at 0.7050 support for Monday. This is a previous resistance level which was recently broken last Thursday. Depending on the size of the opening gap when market opens, I will looking at scenarios to enter long on Monday or wait until end of Monday to have a lower risk entry.

Weekly Forex outlook 5 June 2016

I am watching the following currency pairs next week for potential trading opportunities:

AUDUSD – If resistance at 0.7390 is tested and it holds then I will be looking for signs of strong selling power below resistance to enter short. I am aware of AUD interest rate decision on Tuesday so timing is important if a setup occurs.

EURJPY – support 121.70 was broken on Thursday and price stayed below it on Friday. This was a strong weekly support level so if price comes back up to retest it.

EURUSD -  Friday saw buyers taking control of price and made a significant push up. If this rally continues to 1.1480 resistance then I will be watching multiple time frames for signs of sellers taking over to short below resistance. This level has been in play many times in the last 12 months and it is also a significant resistance level on weekly and monthly time frames.

GBPJPY -  Sellers were in control last week and this pair finished the week just above 154.60 support level. I will wait for Monday’s daily candle to close before deciding if price action favours a short or long bias. Then I will look for the setups that I know how to trade.

USDJPY – This pair is approaching 105.50 support level. Last time price tested this support level, buyers took control and push up over 500 pips. I will be monitoring this pair on multiple time frames to see if price action suggest that buyers will step in again this time.

NZDUSD – resistance at 0.6880 was broken on Friday and buyers made a significant push through to finish the week above this level. Going into next week, I will be looking for opportunities to enter long above this level if price comes back to test it and I can see signs that it is acting as support with strong buying power.

May 2016 performance summary

Here are my performances across the 3 accounts for May 2016. Account statements and performance summary pages have been updated.

+3.34% on Trend Following account
-0.28% on PAMM Growth account
+0.09% on High Risk account

This month, I should have finished positive on the PAMM Growth account but I struggled to stay disciplined. On a few occasions I did not get up on time to check my charts and missed out on trades that turned out to be winners. Trading demands the highest level of discipline and it will punish traders even for moments of weakness.

There are thousands of people blogging about trading but I can guarantee with you that only my blog shows the true reality of trading.

There are winning months and losing months. The market will not allow you to make money on every single trade. My account balance goes up and down as it should do. Most of the trades that I missed turned out to be winners (bad luck). I make mistakes, forget about potential setups and struggle at times to stay discipline. This is how trading really is on a day to day basis. It is not all rainbows and sunshine.