The Dreaded Drawdown

The Dreaded Drawdown

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This week was the first encounter with drawdown (unrealized loss as I have not closed the trades); must admit, it is a painful feeling. At the start of the week, my account had secured 1% growth, and at the end of the week, I had an unrealized loss of 0.5%. Painful! Painful! Painful!

The week’s trading was also affected by my traveling upcountry with very limited (most of the time none) internet coverage. I’m still in all the trades because of the policy to put a stop loss of 1% (ATR*2). I traveled on the 14th evening immediately after placing trades and pending trades, only for the trades to be affected by the news. From then on I did not have access to the internet. 

Even though things did not go well during my drawdown week, there are still enough reasons to smile:

  • The drawdown is in a real sense unrealized as the trades are still open.
  • The account is still positive even if I should close the dreaded trades on the market Open.
  • I followed my trading rules even when things were not good. I did not chase trades, I did not close the ‘bad’ trades as they were well within my trade management rules and not up for ‘trade close’ consideration.

With that said, I have learned a lot, as always during the past trading week. And also, there is this thing of learning more especially on bad trading days.

This drawdown week follows a week we had established how fundamental and sentiment forces can change the market situation. Reviewing trades from a fundamental/sentimental analysis point of view the previous week created the much-needed cushion in this past dreaded week.

With that said, let us review the trades because as I had indicated in my first post, this blog serves to document the trading process (both trades in profits and losses).

We aim to learn from each other, and not sell an idea of “over 90% success rate” trading 🙂

NZDCAD Sell Trade – The Worst Unrealized Drawdown So Far

Took the sell trade on 14th February 2022. The trade was doing great and it was in the green by end of the day. Boy-O-Boy did I wake to a rude awakening on 15th February 2022. 

I must say, if it was not for the 1% stop loss placement, I would be out of this trade.

NZD and other comdoll currencies gained significantly after positive news about the Russian_Ukrain crisis.

Reviewing this trade this weekend shows I should be looking to exit the Short trade as everything is pointing to Long.

  • QQE, BBSqueeze, Vortex, and TSV are all Long indicators.

The only indicator for short is that the price is below the Kumo. The price also indicates to be near strong resistance in both daily and 4H. 

Another strong indicator is that Sikou Span is below the price. I am looking to see if it will bounce from it or break through the price. If that happens, exiting this trade will be a strong consideration.

On the sentiment/fundamental side of things, the news is seesawing from risk-on to risk-off.

Anyway, now that I am with good Internet access, I should look to exit the 6trade unless a miracle happens (and miracles and hope in trading do not work, most of the time)

The trade is currently negative 1300 points.

NZDCAD Drawdown
NZDCAD Failed Sell

AUDUSD And AUDJPY Sell Trades

Took both of these trades as both had prices below Kumo cloud. Just like the NZDCAD trade, the price for these 2 trades immediately went opposite my trade the next day.

Also like the NZDCAD trade, technically, the indicators have continuously been gathering against my Short trade as seen below.

  • QQE, BBSqueeze, Vortex, and TSV are all Long indicators.

I will monitor these 2 trades closely when markets open now that I am close to internet access now.

The two trades went against me due to news releases. At the time of the trade, comdolls were weak due to a cloud or risk-off sentiment. 

Anyway, reviewing these trades by Friday at market close, I can be grateful that the loss is far less. It is clear the trades were more than 1000 points in the negative on 17th February. 

If the current trade conditions prevail, I will take the loss and learn from the drawdown.

AUDJPY is 400 points negative and AUDUSD is 600 points negative.

AUDJPY Sell
AUDJPY Sell Trade Going Bad So Far
AUDUSD Sell
AUDUSD Sell Trade Going Bad So far

USDCHF Buy

Another painful trade to review. Took the buy trade on the 14th of February. Trade was ‘quiet’ and did not move but tanked against me after 2 days.

The price was settled well above the Kumo cloud but well, the news releases were clearly stronger than the technicals.

Price is supported by the base of the Kumo. I will wait to see after the market open.

The trade is negative 400 points.

USDCHF Buy
USDCHF Buy Trade Doing Badly

CADCHF and CADJPY Sell Trades

Not all was lost. I am in 2 trades that are in the green. CADCHF and CADJPY sell. I had placed sell limits for the 2 trades and they were activated. 

The markets must have been very choppy because I can see the 2 trades were in the negative. This was on 16th February and 18th Feb. This had me thinking, would I have been in the trade if I was seeing the only 2 trades that are in the green going against me?

CADCHF is positive 450 points and CADJPY is 600 points positive

These are the 2 trades that have assisted in reducing my drawdown levels.

CADJPY Sell
CADJPY Sell Doing Well
CADCHF Sell 1
CADCHF Sell Trade Doing Well as Well

That’s all for today. I do not have much to write as I did not participate much in the market. Waiting for the market open to resume trading.

Share your thought in the comment section of the forums.

4 thoughts on “The Dreaded Drawdown

  1. Id like to thank you for the efforts youve put in writing this blog. I am hoping to check out the same high-grade content by you later on as well. In truth, your creative writing abilities has motivated me to get my own, personal website now 😉

  2. בשל כך, מי שמחפש חדרים להשכרה, עם כל הפינוקים, אבל
    לזמן קצר, ימצא בפתרון שאנחנו מציעים – חדרים לפי שעות, הפתרון המושלם.
    אז עכשיו אין לנו ספק כי צימרים לפי שעה אינם
    חדרים למערכות יחסים אסורות אלא
    טרנד חדש ומאוד יוקרתי שיכול להתאים לכל אחד
    ואחת מכם בקלילות, אלו שזקוקים לשבור את השגרה, אלו שזקוקים לנופש או לקצת פרטיות לאהבה, אז עכשיו אחרי שהבנו על מה
    ומהם הצימרים לפי שעה כל שנותר הוא לחפש לנו יחידה, צימר לפי שעה כמו שאנחנו אוהבים, בעיצוב לבן , אפור או אולי כתום אדמה, וקדימה
    אמרנו כבר שלא צריך לתכנן, לבטל או לשנות משהו
    בשגרה, מדובר בסך הכל בכמה שעות של ניתוק ובריחה, אז צלצלו והזמינו לכם את החוויה הראשונה, מקווים שלא תתמכרו כי זו חוויה כל כך
    נעימה ומרגיעה, הגוף שלכם
    כבר יסמן שוב את ההזמנה הבאה.
    כל מה שצריך לעשות כדי להשתמש בשירותי האתר הוא להחליט על יום
    ושעה. מצד שני, בזכות האתר דירות דיסקרטיות לכולם כבר לא צריך אפילו להתאמץ.
    מי שמחפש דירות דיסקרטיות בבאר שבע יכול לרכז את כל
    הבקשות שלו תחת קורת גג אחת ולנוח על
    זרי הדפנה. עוד יתרון של דירות דיסקרטיות בבאר שבע הוא התאמה לתושבי האיזור.
    יתרון משמעותי של נערות ליווי בחיפה הוא שההיצע הגדול שלהן מוביל לכך שאין סיכוי שלא תמצא נערת ליווי שהיא בדיוק
    הטעם שלך.

  3. אלונה -המלכה של דרום תל אביב, עיסוי מושלם
    ומפנק. עיסוי בקריות מעניק לכם את האפשרות להתפנק, להירגע ולקחת
    פסק זמן כמו שכבר רציתם המון זמן.
    את המלון כדאי לשמור לאירועים מיוחדים ולהזמין עיסוי אירוטי בתל אביב
    ביום הולדת, יום נישואין וכדומה.
    מתי עדיף להזמין עיסוי בדירות דיסקרטיות בתל אביב?
    מנגד, כל עוד תקבלו עיסוי בהוד השרון בלבד לאורך כ-45 דקות ועד
    שעה, המחיר שתצטרכו לשלם יהיה נוח הרבה יותר ויהפוך את חווית העיסוי לנגישה גם לכם!

    למרות שמדובר בחדר, ניתן לארח בו מספר
    אנשים לכל מטרה, תנאי שבדרך כלל לא מקובל על בעלי מלונות שמגבילים את
    הכניסה לחדר רק לבעלי ההזמנה. עם
    זאת, במידה ואתם מתאמים עיסוי מקצועי בבית המעסה, הרי שחשוב שאתם תוודאו כי הוא מחזיק בתעודות הנדרשות
    וכי הוא עובד על פי התקנים המחמירים ביותר.
    אחד השלבים שלא פעם מתסכלים בטרום היציאה לחופשה, הנו שלב הבחירה, וזאת כי יש לעבור
    על היצע רב לפני שמקבלים החלטה כזו או אחרת.
    זקוקים לפרטיות כי אתם עדיין גרים עם ההורים?

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