Hi ,
here's my ocassional newsletter, now with an important change of trading
settings for Forex Morning Trade system.
But first of all..
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Results for the last three months
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Just to quickly summarize the results we had in the previous months. The system
was running exceptionally well, we made around 10% to the account on
both February and March.
April is so far around zero, there were too many break evens.
You can check my trading journal for all these months here:
http://www.forexmorningtrade.com/trading-journal/
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Important - Change of FMT trading settings
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I'm updating the settings I use and recommend for trading both Forex Morning Trade and Turbo Morning Trade.
The new recommended settings:
- enter trade at 6:15 UK time (15 minutes earlier than now)
- StopLossPips = 45 pips (from 40 pips)
- BreakEvenAtPipsProfit = 25 pips (from 20 pips)
- BreakEvenAddPips = 5 pips (from 0 pips)
All the other values remain intact. These new settings are valid for both FMT and Turbo version
and I'm going to use then starting tomorrow (19th April).
What is the reason for these changes?
Simply better profitability. These settings work better for the last years (2010 and 2011) than my original settings.
What's the difference in profitability?
These new settings show around 20-30% better performance than the old ones since 2010.
Cons:
- By using SL 45 and PT 35 we will further decrease the risk-reward ratio from the "ideal" 1:1.
That's the only slight drawback, but it is compensated by increased profitability.
- The tests before 2010 show better profitability of the original settings.
But that's normal, market evolves intime and we should evolve our trading too.
In my opinion the results for more than a year are sufficient enough to justify this change.
The credits for these improved settings don't go to me, but to Hammy from Donnaforex forum.
If you don't know about it, there's a quite active thread about FMT on Donnaforex:
http://www.donnaforex.com/forum/index.php?topic=2620.0
Hammy's rules actually place three trades, at 6:15, 6:30 and 6:45, with the same settings mentioned above.
My tests show that 6:15 is the best from these times, so I don't see a big reason to split our money to three trades.
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Best regards,
Mark Fric