Current Trading Strategy: Slow and Steady

There's a lot less daily drama and a lot more sitting on the sidelines in my forex trading these days, and so far it's a strategy that seems to be working. Because of the filters and meta-signals I've added to my trading system, it generates a lot fewer signals than it used to, since it's switched off during periods when it's likely to underperform. So in an average week I'll now make 2 trades or so, a lot fewer than the daily trades I used to make (and that ended up leading to some really nasty drawdowns late last year). I'm looking for smaller profits with each trade too, with my limit orders set at levels targeted for both trending and ranging price behavior. This slow and steady strategy looks for a few high-probability trades and in the process filters out a lot of potential winners but also lots of losers, and seeks out modest profits across many different market conditions, with a focus on playing the likely daily range rather than hoping exclusively for profitable trends (which can be few and far between). And with the signal flipper I've added, there's a built-in ability to recognize when the core indicators aren't working and basically start fading my own signals. Overall it's a slower, more patient, more boring and thus far, more successful approach to trading. So far this month I've placed three trades using this system and they were all winners, bringing in 31 pips in total profit. Again, not huge profits, but I'll take them over a drawdown anyday. The system also got the two trades before those right as well, making this a 5 trade winning streak. I'm under no illusion it'll last much longer, but I'm sure enjoying it while it does.
Labels: Signals, Trade Filtering, Trading Systems