Hey guys. So another month gone with the swingtrading system and we’re back to decent results again after a rubbish October. Below are the two .pdf’s for your viewing pleasure detailing every trade the system made on the DAX.
Rather interesting to see that despite having less winning trades than October, and only 4 more points of profit, the financial difference is over +£1100. The reason for this obviously being the variation in position sizing. I’m risking 2.5% per trade on this swingtrading system and the volatility of the market at the time of the trade dictates the bet size. The more volatile the market, the lower the bet size. The quieter the market the higher the bet size. As a result several of November’s winning trades happened to occur when the market was relatively flat, allowing bigger bet sizes and still maintaining our maximum risk of 2.5%. Thus allowing much bigger financial profits on those particular winners.
Best trade of the month was easily Trade #2 on 1st November at 11:00. A short bet which was held until 3rd November 11:10. The trade was only a 259 point win, however, as explained above, due to the flat market at the time the stop loss was tighter and the bet size increased as per the system rules. This allowed a £10.30 per point bet size which resulted in a £2667.70 jackpot win which as you will see, pretty much made the month.
This is often the case with this system. Often only seeing 2-3 big moves in the month. However, these big moves pay off all those small losing trades. It was a 5.5R trade. We risked £484 and turned it into £2667.70. A 550% return on that one trade. Magnificent.
I have had a few people ask me to comment on the biggest loss from time to time. That request shows me that those people have not understood the nature of the swingtrading system as the biggest loss of course will never be any bigger than 1.0R. Or 2.5% of the account (discounting any slippage which may happen on the odd rare occasion). You should rarely ever see losses of more than -1R. This is because our stop loss protects us and gets us out of the trade before it gets any bigger. Ensuring our losses are always small and digestible.
And so we finished the month on a modest 5.8% return. Not bad for a months activity. Obviously not as exciting as the 27.4% seen in September but it’s nice to be back to winning ways after October’s measley £16 profit. November saw the account grow from £19587 to £20718.
As always, if you are interested in enrolling on the Swingtrading Course for Beginners click on that link.