FX Live Trade #5 & #6: Closing Report

Hi everyone!

I am reporting on the 5th and 6th orders together, as they occurred in quick succession. To be direct, both trades resulted in significant losses.

The 5th order, in particular, ended with a -1.805 JPY price gap and a loss of -21,660 JPY. Below is a calm analysis of why the losses expanded to this extent.

📉 Analysis of the Losses

1. Exit Logic Behavior (Price Gap: -1.805 JPY)

The logic for the 5th order is designed to close the position when the price movement enters the range of $\pm 0.9$ to $\pm 1.6$ JPY and a peak appears. Furthermore, it is programmed to close if the price moves back outside this range after having entered it. In this instance, the price dropped beyond the -1.6 JPY mark, triggering the automated stop-loss (close).

2. Lot Sizing and Money Management (Loss Amount: -21,660 JPY)

The primary reason for the large monetary loss, in addition to the wide price gap, was the increased lot size.

My current logic employs a compounding interest strategy (similar to a "double-up" approach), where the lot size increases in proportion to the account balance.

While this method offers the advantage of growing profits like a rolling snowball, it carries the significant downside that the lot size for a losing trade can be much larger than that of previous trades. This trade clearly highlighted that specific risk.

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📈 Total Performance

After six trades, the current account balance has fallen below the initial capital.