spahiu trades

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Romania - cum ar fi daca ...

Hiiim, nu am gasit nici un lucru de care sa ma leg. E perfecta. The World Without Romania :)

Posted by spahiu at 1:01 AM 0 comments

Moving out

Decided to move the blog to a new adress spahiu.wordpress.com ... the wordpress based blog is a bit more complete, has category's and a more interesting set of options...

Posted by spahiu at 3:46 PM 0 comments

the beginning

this year is going to be my first full year of trading, one of many to follow.

haven't traded this first week as i wanted the waters to settle and took the time to double check my system and all the rules that come with it. starting next week will start trading again. may we all have a profitable year!

i've worked on some automation experts for the metatrader 4 platform and if/when i can afford it i will open an account with a MT4 broker to go live with it, so far with forward testing i've had some encouraging results, after great backtesting results, we'll see what the results for the month of january will be and take a decision next month.

on a side note apparently there's something wrong with Moneytec's server and i along with some others folks have been banned since the 1st january, hopefully things will get back to normal as i've rediscovered in the end of '05 some interest aspects of that forum/chat room.

the year's motto : STICK to THE PLAN!

Posted by spahiu at 4:12 PM 2 comments

Money Management

NAV evolution with different money management formulas applied. 

The results are based on the last 106 trades generated by my system..
I got the idea to test different money management rules from some discussions I've read through most of the FX forums around; and it's all about knowing when to increase the risk per trade, lot sizes etc;

One of the things that made me choose Oanda as my broker is that it allows a flexible position sizing, you can trade any number of units from 1 unit to 25 mil. Taking advantage of that I've tested various formulas and this is what I've come up with.


The darker line is the evolution of NAV, when the next trades size is determined by adding/subtracting half of the "%" increase in NAV of the last trade. I followed -~chaffcombe's model but scale it down to a trade by trade, rather than day by day.


The pink line on the chart is a "classical" MM model, that increases the lot sizes when the account grows, according with my systems stop/loss requirements I started with risking 0.5% per/trade and increasing the risk by another 0.5% when the account has gotten to a predetermined level.... (on second thought this is not exactly classical).

The yellow line is the results of increasing the percentage risked per trade by half of the previous trades gain/loss as % NAV, also this started by risking 0.5% on the first trade;
For example if the last trade made 1.5% NAV in profit's, the next trades risk will be 0.5%+ 0.5*1.5%= 1.25% ...it is a rather aggressive model, and still under tests.

Risking the same fixed percentage on every trade proved to be the method that helped the less with compounding so i did not put it on the chart, nor considered to use it myself.

Posted by spahiu at 10:21 PM 0 comments

Updates wanted

Remembered i was supossed to update the blog, so here i go :)

I'm gone post something later this week abbout the money management involved in forex trading, and especialy my methods... stay tuned

Posted by spahiu at 8:44 PM 0 comments