Trading the trend: up 12.5% year-to-date
Having closed out our last hypothetical trade of the year, we are looking at our monthly profit distribution, risk/reward, and how we manage risk.
(AI Video Summary)
Assessing previous USD/JPY trade
In this video, host Axel Rudolph talks about a trade he made in the past with the USD/JPY currency pair. He noticed a technical pattern called Harami, which made him think that the price would go up. But unexpectedly, the Governor of the Bank of Japan hinted at changes in their monetary policy that could cause the yen to strengthen against the US dollar. Because of this, he lost money on the trade.
Reviewing the Trading the trend 2023 results
Instead of presenting a new trade today, Rudolph shows us his spreadsheet with all his trades for the week. He explains that he was right about half of the time, with some trades resulting in gains and others in losses. He wants to emphasise the importance of considering risk and reward when trading. On average, the potential reward in his trades is at least 2-3 times greater than the risk. Sometimes, it can even be 10 times greater. He always aims for a larger reward than the risk.
When analysing his monthly performances, Rudolph shows us that there were months where he had losses, but they were not significant, only about 2-3% lower. On the other hand, the gains were much more substantial, with some months showing returns of 8% or 5%. Overall, he's ended the year with a gain of around 12.5%.
Next week, Rudolph plans to go into more detail about his different trades and setups, as well as how he manages the risk and money involved. He is grateful to the viewers for watching the show throughout the year and promises to find ways to improve the information he provides, especially when it comes to trading spreadsheets.
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