Day Trading Tips and Tricks

January 12, 2015

Erich Senft

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John May

I’ve been trading for a living for 6 years now and have bought quite a few products. Most have been mediocre at best and less than what I expected. I believe back testing is the reason I’ve been able to give up a “real” job and I’m constantly looking for ways to improve (and thus reduce the time I need to spend trading in order to make profit targets). I had never found an automated back testing tool that could do what I wanted. Looks like my Profit Finder investment was definitely a good one.

I put the back-tested setup into action this week. Results are for the EURJPY forex pair from +Tuesday morning through +Friday morning trading a 5 pip range chart. Trading hours were the usual best ones from 4am until noon, +1pm to 4pm, and +8pm to 10pm. Most of the trades in the out-of-sample results were actual ones, but, as I don’t sit in front of the computer 12 hours a day, some are hypothetical based on chart review. Actual and hypothetical results were very close.

There are only 41 trades in out-of-sample so I’m not done yet but, amazingly, at this moment, results overall are a bit better than the back-test ones.

The other amazing thing is these trades require only a 10 pip stop so the % return is phenomenal (even while risking less than 2.5% of portfolio per trade). Of course, given the tiny stop and forex margin requirements, I couldn’t risk much more than that even if I wanted to. I almost hate to tell you the maximum drawdown because you probably won’t believe it, but it was just a tad over 3%. I can honestly say I would never have found this setup without Profit Finder. Being able to do things 10 to 20 times faster is a definite plus.

I’m ready to declare a victory. Have well over a hundred actual, out-of-sample trades in addition to the back test numbers below and the numbers are holding up very well.

Thanks for a great product.

January 12, 2015

Erich Senft

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