Prop Trading Futures

$USDMXN playing the hat dance #USDMXN #FOREX

I like the analogy between the Symmetrical Triangle in USDMXN and the one in USDZAR (discussed here).

The monthly chart (see the well-defined breakout that happened back in November 2014 and a less decisive advance since March 2015) shows that more than half of the move to the measured move target of the 6-year chart formation is done.


Zooming in. The daily speaks about painful months for breakout traders (from March to June 2015).  This market is keep moving higher, but breakouts currently are not working.

One of the worst thing that a trader can make during these periods of consecutive losses is to start to back fit his or her criteria (trading plan) based on a handful of data points. Serious system testing shall be performed on hundreds and possibly thousands of events, not on few months of disappointing performances.

A good practice to perform during tough periods in order to remain focused on trading (rather than panicking) is to continuously assess how good we have been in performing the plan for each single trade.  Go deep into this practice and you and your trading will immensely benefit for it.