Another Losing Trades On FCPO Hourly Trend Indicators

Started from October 2013, majority of technical trend indicators on FCPO short term trading was hit with multiple losing trades again, technical trend indicator A was also hit with 109 ticks or RM2,725.00 per contract size in accumulated losses so far. Its last stop and reverse buy signal was 2317 on last Friday's close at 6pm.

60-minute FCPO technical trend indicator A will have the stop and reverse trade signals at a range of between 2300 and 2308 for next 10 trading sessions based on 1130am, 1230pm, 4pm, 5pm and 6pm, there are total 5 trading sessions on every trading day for the 60-minute short term technical trend trading in this blog's updates.

Please refer to 101indicators blog in the DATA page to check the performance of the 3 technical trend indicators A, B and C in FCPO column which had the latest update for September month. Worst performer, Indicator A, was hit with accumulated loss of 61 ticks per contract size and another 109 ticks in October so far as mentioned in the above paragraph. Therefore, if a short term technical trader does not have enough "capital / margin ratio", the losses will definitely stop the trader from trading already. 

Think about it if you seriously wish to be a technical trend trader with such a calculated risk on cpo futures trading!?  

RSI Performance From January To June

Click HERE for the details of RSI performance in the first half of this year.

STC Indicator Performance From January To June

Since publicly open up for viewing, the stc indicator profit and loss record for every single trade can be seen easily, excluding profit maximisation strategy. Click HERE for details.

Lesson - Calculated Risk

How to establish a calculated risk in futures trading?

When you start trading in futures market, your broker will always ask you to place a 'stop loss' order. However, it is very common your stop loss order will be based on your margin available in your account especially when you trade with little margin. This is to protect you from over loss when market is against you.

In general, majority of smart cpo futures traders will know how to set their calculated risk so as to minimise the losses. Here, if you are a novice trader, you must establish a strategy on such a calculated risk method in consistent with your trading. Technical trading all have their own strategy of calculated risk precisely stated unlike fundamental trading.

Therefore, it is good to learn how to trade with technical indicators for a start. Buy some technical analysis books to learn how a technical book helps you maximise profits and limit your losses. The books should be able to teach you all the basics of technical trading. For example, when is the indicator sell mean you are either profit take turn sell or cut loss turn sell. Remember to calculate the profit and loss over a period of time to prove that the indicator is capable to help you accumulate wealth.