ForexSpirit

October was a pretty difficult month of trading, given the resurgence in dollar strength for such an extended period of time. I closed two of my nine trades for the month for a loss. Since these two trades were opened in high Q3/low Q4 and closed out in Q1 they were large losses, but in line with what my trading plan dictates in such circumstances.

Since I closed those two trades, price has returned to the level where they had been originally opened, so why didn’t I just hold on and wait for price to come back (just like it has)? The reason is that at the time I closed the trades for a loss, there was a greater likelihood that the dollar strength was going to continue, which would have meant that I could have gotten burned even more if I did not follow my plan and close those trades out at that time. I was also at my gearing maximum, and needed to unload some positions so as to have the capacity to enter new positions at the lower levels to take advantage of any moves back up.

My seven positive trades for the moment were pretty much all of the bread and butter variety. Again, this was due to the dollar strength that was in evidence, where it seemed prudent to take profits quickly, before the dollar’s strength eroded the profit away. Unfortunately, I did not catch any larger moves from the lower half of the grid, which meant that I was not able to completely gain back the losses that I encurred. Overall, I was able to recover the losses from one of the losing trades, but not the other one, yet.

Overall equity change for the month: -3.9%
Total number of trades: 9
Number of winning trades: 7
Number of losing trades: 2

Limiting drawdown and preserving capital is an incredibly important aspect of being able to stay in the trading game long-term, so I am perfectly happy with this result for the month overall.