Sorry about the rather large delay between posts, since my last we’ve had Christmas, New Years, and pretty much the whole of January. I think therefore it’s time for a bit of an update on the blog, trading results and life in general.
So lets start with my long term strategy….
I’ve made the decision to stop investing in the futures markets with my broker and to simply trade the DFT’s (daily traded funds). These do incur an overnight holding fee which I accept however with the futures I struggled with the change in pricing as the market approached it’s expiration date. This has an affect on the profit and with multiple potential rollover periods this was far less predictable. By using the DFT’s I can factor in the costs, backtest it and prove that the strategy is still highly profitable.
I have also updated my trading log which is now showing a profit although I must add not as much profit as it could be. I’m not currently invested in the DAX or S&P which are markets I do trade. I’m not invested because I promised, when I started the blog, that I would wait for the next systematic signal before I entered into any of the relevant markets. These two have rocketed since this blog started but have continued their trend so I have not been able to trade them. I’ll just have to wait for a change in the trend, however long that could be.
In addition to the above system, i’ve started to trade a swing strategy on a more medium term basis. Why you may ask would I bother when I have a long term trading strategy in motion. Well the simple answer is, I miss trading. The long term systematic strategy is proven through backtesting and is performing well but trades are few and far between. I will be keeping the long term strategy as the base of my trading but supplement it with swing trades. These trades will predominantly be in the equities and fx arena and will involve trading with the trend as well as trading breakouts.
I’m looking to add another table to the website to record these trades (after the event). This again will help me to be accountable for each trade I make and hopefully show it is possible to be profitable using another trading strategy.
Because this is very different to the long term systematic strategy, I will only be risking 0.5% of my trading capital per trade. I also hope to provide a bit of analysis to some of my decisions and show where I may have done things right but also when I mess up.
I’m sure you are aware, either from mainstream media, social media, friends, colleagues or out of a personal interest, that crypto currencies, like them or not, are now big business. I couldn’t help exploring this world and grew a particular interest in Ripple (XRP). It interested me as it was not only a currency but the company behind it had developed a payment transfer system using blockchain that they were tipping to rival SWIFT that currently transfers trillions of dollars. In addition, in November, the value was very low so for a small downside risk the upside potential was much greater.
I bought a small amount of the currency with a view to hold it for the long term but within a few weeks my investment had grown insanely. I became concerned when a large crypto-exchange, Coinbase, allegedly made a statement saying they had no plans to feature Ripple and therefore sold with a net profit of 950%. The value of Ripple has since reduced massively but I wouldn’t rule out long term growth.
I’m not planning on trading the Crypto markets regularly and this was more of a fundamental play than technical analysis but I thought it was worth sharing my experience.
So rounding up then, i’ve obviously been trading away and thinking heavily about growing my account but have basically been slack in communicating this on the blog over recent weeks. I’ll make a promise this week to ramp up the number of posts and you will definitely now see an increase in trades being posted as this week i’ll commence my swing strategy. As ever, if you have any questions or anything to add please get in touch using the comments section, the contact page at www.tradecompoundgrow.com/contact or email me at email@example.com.