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BookingAlpha Option Trading Advisory

Friday, January 3, 2020

Trend Sniper system performance and a decision

Well, Happy New Year!

It's now time to analyze the numbers for all the investing/trading approaches that I use and today the focus will be spot Forex Automated Trading.

The LT Trend Sniper is the Forex system I implemented back in 2012, which I have been trading with real money since 2013.

In 2019 the performance was, let's say below my expectations, even though things were going relatively well for a good chunk of the year. Below is a trade by trade break-down:

In 2019, EURUSD trading was the big disappointment with only 3 losing trades and two break-even trades. No winners.

Gold trading on the other hand was pretty decent and at one point up 12.42% for the year.

Combining both instruments the Fx portfolio was up +2.59% for the year. This is a little worse than the Barclay's Currency Traders Index benchmark at 2.98% for 2019. It is the first time in 7 years that the LT Trend Sniper system under-performs the benchmark.

These are the yearly returns for the last seven years of the LT Trend Sniper

These are not terribly bad numbers. They represent a +10.51% Average Annual Return. By comparison, the benchmark's Average Annual Return has been +2.53%, a testament to how tough the Forex arena has been in recent years. The Trend Sniper system has easily outperformed the benchmark. And this, with draw-downs throughout all this period that have never exceeded -15%. So, I'd say it has been a rather smooth ride and a successful project.

With that being said, I've decided to stop my FX Investments efforts. As it turns out, American Residents are not allowed to trade spot Gold. I have been able to do it all this time through OANDA Canada as a Canadian citizen and former Canadian resident, but they recently forced a series of personal info updates, and well, I am not allowed to trade with them anymore. The account is now closed and on the other hand US Fx Brokers won't allow spot and leveraged Gold trading to Americans. So, I've made the decision to move on and focus my energy in other areas going forward (namely Long term Dividend Investing and Leveraged ETF Portfolios). It will be one less account to worry about, one less broker, etc. So, I'll be simplifying my life a little bit.

It's been a nice 7-year battle trading the Sniper, my little baby. But everything eventually comes to an end. Here's the final FX Results track record page, which will remain on the site as a legacy item

Over the next few days I'll be writing about the returns in all the other trading/investing areas I used in 2019.


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