5 Minute Trading - the August Wrap

CMC Markets

The "Five Minutes a Day Trading" strategy made a profit in the month of August - just. A succesful trade on the last day of the month meant that the strategy finished 15 pips in the black. Here are the full results:

Some points of interest:

- the strategy hit the minimum number of successful trades for a profit - 6 out of 23 days. Any further succesful trades would have added 60 pips each to the August result (15 pips not lost, 45 gained).

- the strategy had three near misses - within 2 pips of a succesful trade. Trading can be like that, and there are no tears or excuses. However, the pattern the strategy is built around (the first move in the European trading day in EUR/USD is often reversed) held up very well. A number of traders did well in adapting the 5MADT strategy to their own trading style, and enjoyed much more profitable months.

- the successful trades "clustered". In the middle of the month, 5 out 6 days traded successfully. September 1 also delivered success after a win on the last day of the month. While this is a very small sample, the suggestion that successful trades tend to group together may be worth further investigation.

- August rewarded "Johnny Come Latelies". A trader who started the strategy on August 13 picked up 135 pips for the month.

- thanks go to the many traders who provided interesting and valuable feedback.

We won't be blogging the strategy on a daily basis from here, but of course, any trader can implement the strategy themselves on any given day. (Traders doing so should be aware that after the introduction of daylight savings in Australia and the end of DS in Europe, the start time changes to 5 pm in Sydney/Melbourne/Brisbane). To re-read the white paper outlining the strategy, click here:

Finally, the overall lower risk, time-efficient nature of the 5MADT strategy means CMC is happy to put resources behind further studies to find other trading quirks. Thanks for the suggested instruments, I'm now working with Leo the quant to identify other opportunities.

Watch this space!

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