A valuable key that makes a formidable trader: Lesson from @id2rich

Greetings to all you traders. Hope you had a great start to this brand-new month of September, listed your goals and ambitions and gear up to make the month of September your best month yet.

For this week, let us get to know @id2rich, a trader from Malaysia whose skilled symbols are EUR/USD. His personal statement on his Follow Me page is ‘I believe forex trading is the future which is happening now’ clearly shows his passion for this industry.

Let us start with some data from his Account #6, taken as of 4 Sept, at 11am.

• Trading period is relatively newer at 8 weeks (this account was opened on 8 July 2020, but he has two other accounts opened on 6 July 2020 (Account #4) and 30 June 2020 (Account #3).
• However, despite the short trading period, current ROI stands at 78.73% which is a notable achievement.
• Profit is at a remarkable $163,200.51.
• Average profit is at $359.49 while average loss is at -$393.30.
• Profit and loss ratio stands at 1036:532. This can be translated to almost 2:1. (Generally, the profit and loss ratio is the average profit on winning trades divided by the average loss on losing trades over a specified time period and a healthy profit ratio should be 2:1 or 3:1).
• Leverage is at 1:1000.

Summary of analysis:

Despite the short trading duration of 8 weeks, this account has chalked up a total profit of $163,200.51 – which averages out to be approximately $20,400 a week. As a rule of investment trading, past performance does not indicate future performance but the objective of presenting an average profit per week is to give you a picture of this trader’s performance for the duration of the trading.

Leverage is on a rather high side at 1:1000. It would also be helpful to this analysis to obtain a commitment for maximum drawdown or max DD as it would present a picture of performance totality.

Trading Analysis

All of the trades over the trading duration of 8 weeks centered around EUR/USD (majority) and USD/JPY with a mixture of long and short positions. A breakdown of trades for the months of August and July are as below:

To date in September:

EUR/USD: 89 orders (Long: 39 orders and Short: 50 orders)

USD/JPY: 27 orders (Long: 12 orders and Short: 15 orders)

August:

EUR/USD: 541 orders (Long: 287 orders and Short: 254 orders)

USD/JPY: 314 orders (Long: 160 orders and Short: 154 orders)

July:

EUR/USD: 479 orders (Long: 221 orders and Short: 188 orders)

USD/JPY: 188 orders (Long: 91 orders and Short: 97 orders) 

Points To Note:

For the past two weeks (20 August to 3 September), trading lots size range from 0.2Flots to 15.2Flots. One very interesting thing to note from the trading pattern over these past two weeks is that when @id2rich is confident about a position, the size of trading lots increase, and the 5 largest size trading lots (15.2 Flots, 11.4 Flots, 10.2 Flots, 7.6 Flots, and 6.8 Flots) were all wins. This shows that id2rich is a cautious trader, does not seem to be led by emotions and prudent in his trading strategy.

A further observation on the trades from 7 August to 19 August indicate that there were several losses on larger trade sizes (38.8 Flots, 15.2Flots and 11.4Flots) but a reduction in trade lot sizes after these dates show that @id2rich is a trader who learns from mistakes, rises from it – wiser the next time. It is indeed a valuable lesson as risk management is so vital to ensure that losses, while cannot be eliminated from trading, can certainly be minimized. These are good traits for a trader to have.

I am looking forward to seeing how @id2rich would apply these techniques to a wider range of pairings in his portfolio for all his subscribers to reap the reward from. The EUR/USD and USD/JPY are one of the most tradeable currencies, but it would be interesting to watch an expansion into other currency pairings such as GBP/USD and even USD/CAD which are also very popular.

All trades are done manually and length of time between trades varies.

ANALYSIS OF PROFIT OVER 3 MONTHS, MONTHLY ANALYSIS REPORT & EQUITY/BALANCE OVER THE PAST 1 MONTH

*All information were obtained via @id2rich's page.

(i) Profit from account opening date, 8 July 2020

(ii) Monthly Analysis Report

(iii) Equity/Balance over the past 1 month

There is an old Chinese proverb that goes, ‘It is better to take many small steps in the right direction, than to make a great leap forward only to stumble backwards’. It is truly apt in describing how @id2rich learned from his mistake, rebounded back by readjusting his trading patterns to move forward in his endeavor to become an excellent trader. In my humble opinion, that is an especially important key that would ensure continued success in a trading journey and what defines a formidable trader.