December and January were extremely unkind to me. I took a huge loss on Disember 9 that coincided with the Fed meeting and another big punch in January. Deservedly, my inbox quickly flooded with comments and suggestions on the drawdown. The most common of those was to kesan berkahwin semasa belajar forex trading during news events.
I still trading during news events? There are a few answers to that question. Fed meeting can and badly hurt. Say that I’m determined to exclude news events in the future. Due to the tiny number of news events that impact the markets like the December 9th announcement, my data set is miniature. The risk of overfitting to historical news events is huge.
Working with tiny amounts of data provides little in the way of long run confidence. Focusing my efforts elsewhere is far more likely to improve performance and requires much less work. Dominari trades a portfolio of 7 different instruments. Many subscribers correctly observed that the major losses occurred with trades open on all 7 pairs in the portfolio pada masa yang sama. A good predictor of trade performance is the number of trades open simultaneously. Testing and confirming the max open trades rule was quick and easy. Accordingly, Dominari now exits all open trades if there are 5 or more trades open at any given time.