[ IMPORTANT EDIT: 03/04/2018 ]
It’s time to update this old topic, in the meanwhile I have changed the trading strategy behind PFI with a new one, more stable and consistent.
Strategy: technical, trend-follow
Execution: fully automated, but parameters are calibrated periodically
Entry rule: technical indicators (the old version was based on pattern recognition)
Exit rule: fixed stops and target profit
Risk management: average risk 1-3% per signal, depends on market behaviour, trailing stop
Portfolio: at the moment 6 forex pairs, but I can change them, depending on my forward analysis, always balancing the overall risk.
The chart could be split into 3 parts:
- 1st one: pattern recognition, but I hadn’t a fixed number of trades, so this could be a problem for the risk-manager in case of too many signals.
- 2nd one: pattern recognition plus a money management, and some tests trying to fix the old “timing score” that was penalizing trend following strategies (but with no good results)
- 3rd one (since June 30th, 2017): finally a radical change of the system, this new one is based on technical indicators instead of patterns, few variables, and a strict risk management. Always a trend-following strategy improved by experiences and years of tests.
You can still see the stabilization of the risk-manager, and above all, an interesting chart since the beginning of the new system.
This is the result:
I will do my best to improve my trading skills.