Do Not Fight the Trend

Loonie's a winner...and my two losing positions.

Trading book:
Long USD/CAD (x2) @ 1.0204 effective cost

Hence, possible improvement to my trading system:

1) Use a 100-pip stop loss level when opening position.

I had 43 winners for the last 2 week (from 13 Sept), yielding a total of 941 pips. The average drawdown for those positions is -26. The highest drawdown recorded is -86. If I had the emergency stop in place, the system would automatically close out the losing position for -100. Hence, it should be a simple 200 pip loss on the loonie positions instead of a current running loss of 400. Looking at my results, I should not be afraid of trading losses, and it is OK and 'healthier' to take a hit occasionally.

2) Attempt to clear my trading book towards the end of the day.

Holding onto a losing position for too long could impair your trading judgement. This week, I 'carelessly' added onto a losing position, hence the second long USD/CAD position in my trading book. I even tried to long EUR/CAD . I think I can do better by having a clean, new trading book for each new trading day.