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My 2020 Forex Trading Results

January 4, 2021 by

With 2020 finally coming to its long-awaited end, it is time for me to check up on the performance of my Forex trades during the year. Fortunately, my overall trading results in 2020 were positive and much better than they had been in 2019. Although I still have three trades (AUD/JPY, CHF/JPY, and EUR/JPY) left open from 2020, I won’t count them for 2020 but rather for 2021 profit/loss by the end of the year. My yearly ROI for 2020 was +22.0% over the course of 17 trades. As always, I am only counting the trades based on chart patterns — my main trading strategy. I omit here my long-term fundamental trades and experimental strategy positions that I execute in different accounts.

My Trading Performance in 2020

Analysis

As you can see, the bulk of the profit came from the two oversized trades that had resulted from fat-finger errors from my execution software. The undersized profitable trade (#5 on the chart above) was caused by another bug in my Chart Pattern Helper’s position sizing calculation and would have been a normal profitable trade otherwise. Despite that, my wins still outnumbered the losses (10 vs. 7). Taking away the oversized gains (which would have still been a bit oversized even if they had been executed with a normal position size), the average profit size (1.37%) is somewhat higher than the average loss size (1.16%).

The best pattern in 2020 for me was a symmetrical triangle with six successful trades vs. just one unsuccessful trade. At the beginning of this year, I had decided to use the maximum and minimum values for stop-loss when trading with triangles and this strategy adjustment has borne fruit.

The worst pattern was a descending channel with a 3-to-1 losing ratio. Unfortunately, there is no conclusion to be drawn out from these trades that could prompt me to adjust my approach to such chart patterns.

In general, I am satisfied with my trading results for the last year — they are better than S&P 500 gain for 2020 (18% including dividends), but there is definitely room for improvement here. Most importantly, in the execution quality of trading tools that would help me to avoid those accidental mistakes.

Poll

Now that you know how 2020 has wrapped up for me in terms of currency trading, I would like to learn how it has ended for you. Please choose an option from the reader poll below that suits your situation the best.

What was your net Forex profit in 2020?

View Results

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If you would like to share details on your 2020 Forex trading results, you can post a comment using the form below.

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