Trading Recap: February 2021

February was quite a rough trading month. After experiencing a bit of FOMO in January, my entries became sloppier and weren't as well thought out. This really showed in my performance.

I don't have any really memorable trades aside from the ones I've discussed in the earlier posts. After taking a dive, I was patient enough to take higher quality setups that led to the slight recovery of my account. This persisted through the initial trading days of March.

EdgeWonk

Since EdgeWonk plots my performance by trades, the vertical lines separate the months. I'll definitely have to look into an elegant solution. After coming out pretty much even in January, this continued in early February as well.

You can see where I took on a string of losers. This was mostly my fault rather than setups not working out. My entries and stop loss placements could've been further optimized. I neglected to keep an eye on the structural levels over on the higher time frames when I set my parameters.

There was one set of trades I took from the end of February to early March. This occurred over on EURNZD.

EURNZD 4-Hour

The two arrows represent my entries. These were two trades that I ended up scratching with minor losses. I initially was looking to go long. After this pair sold off, it threatened to breach above our previous lower breakout level. Since price hovered lower without much indication of further selling momentum, I anticipated further upside.

I didn't like how little momentum occurred over the 24-hour period after I took my trade. After seeing the attempt to trade higher and upper wicks on the following candles, I reversed my position thinking that it might be time for this pair to trade lower. After all, the daily time frame still indicates that this pair was in a massive downtrend.

Overall, I don't think I made any major mistakes managing this trade. The flip simply didn't work out. The aspect that I could do better is not rely so heavily on each candle during periods of illiquidity. In this case, there will be a lot more fake signals so we should be reducing our sensitivity when interpreting them.