Short Term FOREX Plan

As promised last time, I have to improvise a new trading plan to get over the floating positions (that are down with -750USD). Considering my account balance this has to be a big workload. And best to put it on a timeline ( as a SMART approach).

I want to have it spread over the 2nd half of the year (also including May), so if we consider a time span of 7 months, we have to reduce the open positions with around 100USD per month…and that is a lot. If I am looking back to the investment plan I did last year in May (wow it has been a year) I need 5% of my current account plus 100USD over that. So with my account balance I would need 160USD only for this month.

Good, so not that we sketched that it’s a bit troublesome with the account blocked to gain that amount of cash (in this situation as normally it can be done), let’s set the objectives in order (or from another point of view).


The best thing is to have lists (it’s fun to cross them over):

  • Reduce the floating positions from -750USD to 0.
    • The time span should be until the end of the year
    • The time span can be extended until May next year (13 months)
  • Grow the account by funding and trading
    • The value at the end of the year should be around  2760USD (to respect the plan)
    • It is acceptable to have 2260USD and -250USD as floating positions
  • Investment Breakdown (Monthly)
    • The value that should be invested to keep on schedule is 50USD
    • A better investment would be 60USD to help with the current situation and increasing the free margin
    • The best scenario will be to add 80USD per month (the 30USD that is the difference from the point one and current value will cover the losses from February and April)

So we have three big points that we have to cover up. As the first point dictates the plan will cover the months May-December 2020 and with a possibility of extension till the end of May next year. I am convinced that in the meantime new scenarios will come in hand and we will redo the plan (and even renounce is the situation is better).

How To

  • Reduce the floating positions
    • Make enough profit to close the open positions (one buy one sell)
    • Make enough profit to close just a position that is opposed to the current trend
    • Use the regular deposit to close a position
    • If the market moves in a direction with a big movement, put stop losses on the positions in that direction and profit from the correction to reduce the floating minus
    • I am more than happy with small gains and small losses if it means I can close the open positions in my advantage
  • Grow the account by funding and trading
    • The current condition permits me to have just one open position at a time, but I can target at least 1% return for each trade
    • The next deposit will free enough margin to add a second trade (and hopefully I will start looking at other parities)
    • I found a way to practice my strategies during this ‘lock-down’. With practice comes experience, so I hope that I will make every trade worth it, in the near future
    • The monthly deposits will definitely help
    • I am decided to invest a bigger sum at the end of the year to be as close as possible to the target
  • Investment Breakdown (Monthly)
    • here everything is simple and explained in the Objectives section.
    • We have 3 possible levels to invest, the minimum is 50USD per month
    • If I find other opportunities on the market (like stocks) it is possible I will miss one or two deposits, and I am ok with that.

Let’s do it!

“Setting goals is the first step in turning the invisible into the visible.”

Tony Robbins

We have a plan, we have an agenda and if it’s not visible, it is in my head. We will try to mark as many points as fast as we can and with a little luck we will be done with this episode this year.

If I am going to close with a loss this year, I am good with that because I know I had the chance to learn lots of things and to experiment. Even if I lose 1K this year, 1K next year I know I have the potential to reach 1-2K gains each month.


This is the current situation at the time of the article.

image 12

And this is the current analysis done for the EURUSD pair, where all the open positions are happily joining in a big open losing trade. I am already in the small sell position ( would have liked to adjust more the open position size) and I will see if the buy is viable or we will meet a downtrend.

image 11

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Thank you for reading this!

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken in that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

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