I started trading the foreign currency exchange on the 24th of February 2009.
Below is a graph of my account balance:
As you can see, I was earning a decent gradual amount from my initial $500 deposit, then copped some massive losses and my account wiped-out. After that, on the 24th of April, I deposited $250 to start fresh, and have made great profits ever since and am on my way to working back what I lost.
I the reason for the big losses was due to a number of reasons.
Firstly, I had become over-confident and didn’t think about margin problems with taking up larger lots. The larger lots produced a larger margin loss during the usual draw downs, which unfortunately were too large and the lots closed.
Another reason for the losses during this period was because of an EA i was testing out that made a number of really bad decisions on my behalf.
I have learnt ALOT from this experience and am actually happy that it happened.
Sure, I lost a few hundred dollars, but I gained knowledge that only large mistakes can teach you.
I am now confident enough to know when to open a position, but also am aware of how large my lot sizes can be.
Below is my account balance graph filtered to after the losses.
It’s my ‘starting fresh statement’:
After starting fresh, I back tested a number of Expert Advisers (EAs) aka Robots.
Not many showed alot of promise.
Only robots that trade about once a day seem to be highly successful with account balances lower than $1k
I had only $250 to work with, so that meant alot of commitment of 0.01 lots and close observation.
I decided to stick to only one EA, named MegaDroid (MD or Droid), and i scrapped FAP Turbo (FAPt) due to it’s late failures. I could only rely on the Droid now, as I lost faith in FAPt.
One other method I started using was an AUD/NZD strategy involving buying and selling between the ranges this pair has shown for the past 5 years.
It’s a very volatile pair, yet it seems to fluctuate between a range that hasn’t been broken for over 5 years, making it a very good pair to work with.
As you can see, my success since staring fresh has been quite good.
The Droid has had a 100% success rate so far and the AUD/NZD strategy hasn’t given me massive draw downs as of yet.
I have made $182.45 since starting fresh less than 1 month ago, averaging about $10 per day.
That’s 4% of my fresh starting balance every day.
Meaning, after 25 days, I will have made $250 (100%) and doubled my deposit.
Lets see a bank pay out that much 😀
My current strategies (12th of May):
EUR/USD MegaDroid v1.11: 22% Risk
Catch you soon,