Another profitable outing for the Five Minutes a Day Trading Strategy, but what a month! After success on the second trade, a horrible run of nine losses tested commitment to the strategy. However, the overall result ran true to the analysis, and wins on the last two trades pushed the strategy to a profit of 56 index points for the month.

For the record, here are the details of the last trade:

20130301 dax prices

Once again, the trade was triggered and the profit target hit early in the trading session. Here are the details of all the trades for the month of February:

20130301 results

Observations:

  • The strategy hit the minimum number of trades required for a clear profit. Any more successes would have added 46 points to the final profit (35 won, 11 not lost).
  • The maximum draw on capital for the month was 75 index points.
  • As in the August 2012 5MADT experience, the successful trades “clustered”, with four of the six wins adjacent to another winning trade.
  • The strategy finished the month at its highest profit point (trade tonight anyone?).
  • A trader executing the strategy may not have gained all 56 points – stop entries by their nature are subject to slippage, especially in fast moving markets. The study does not include slippage, as it will differ from trader to trader, depending on factors like the time of order entry and the size of trade.
  • As in August, the strategy rewarded late starters.

This ends our daily reporting on the strategy, but of course any trader could implement the strategy in the future. Traders doing so should be aware of daylight savings changes. Here’s the original paper for those looking to do their own calculations (it also refers to the first 5MADT strategy on the EUR/USD).

Now it’s your turn. We’d like to hear from any traders who followed the month. Did you use the strategy? Did you modify it? What was your experience? Do you have any suggestions for improvement, or any market quirks for us to investigate for a future 5MADT strategy month?

Finally, thanks to all those who generously contributed their thoughts and comments throughout the month.