As of 09/26/2023

Indus: 33,619 -388.00 -1.1%

Trans: 14,819 -282.19 -1.9%

Utils: 845 -24.76 -2.8%

Nasdaq: 13,064 -207.71 -1.6%

S&P 500: 4,274 -63.91 -1.5%

YTD

+1.4%

+10.7%

-12.7%

+24.8%

+11.3%

Targets Overview: 09/15/2023

34,500 or 33,150 by 10/15/2023

15,900 or 14,800 by 10/01/2023

880 or 800 by 10/15/2023

14,400 or 13,000 by 10/01/2023

4,425 or 4,175 by 10/15/2023

Chart Pattern Indicator:

on 9/15/23

As of 09/26/2023

Indus: 33,619 -388.00 -1.1%

Trans: 14,819 -282.19 -1.9%

Utils: 845 -24.76 -2.8%

Nasdaq: 13,064 -207.71 -1.6%

S&P 500: 4,274 -63.91 -1.5%

YTD

+1.4%

+10.7%

-12.7%

+24.8%

+11.3%

Targets Overview: 09/15/2023

34,500 or 33,150 by 10/15/2023

15,900 or 14,800 by 10/01/2023

880 or 800 by 10/15/2023

14,400 or 13,000 by 10/01/2023

4,425 or 4,175 by 10/15/2023

Chart Pattern Indicator:

on 9/15/23

Bulkowski on Forex Stats

Leverage in the Forex Market

How does the use of leverage affect profitability in the foreign exchange market?

This article is based on the writing of James Stanley in his article Three Rules to Risk Management as published in the July 2014 issue of Technical Analysis of Stocks & Commodities magazine.

When I read an author who supports his theories with statistics, I love it. Stanley did just that in his article. I'd like to share some of his findings with you.

The article is based on research conducted by FXCM.com. "FXCM is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the Commodity Futures Trading Commission and is a member of the National Futures Association," according to their website.

The study included data from 2000 to 2010 on more than 12 million trades in the most heavily traded currency pairs. Here's what they found.

The percentage of winning trades ranged from 49% (in AUD/JPY) to 71% (in AUD/NZD) of the time.
The average win was 52 pips but the average loss was a whopping 94 pips, or almost twice as large. The largest gain and largest loss was in the EUR/USD pair with profits of 65 pips and losses of 127 pips. None of the 16 currency pairs they reported on showed traders making more money than they were losing.
As the use of leverage increased, the percentage of profitable trades decreased. See Table 1 below.
As the account size increased, the use of leverage decreased. See Table 1 below.

Table 1: Statistics
Highest Equity	Average Trade Size	% Profitable	Leverage
$0 to $999	$26,000	21%	26 to 1
$1,000 to $4,999	$30,000	33%	6 to 1
$5,000 to $9,999	$54,000	37%	5 to 1

The above table shows how the use of leverage decreased as the size of the account grew. As leverage decreased, the percentage of profitable trades increased.

I wonder if this behavior trend continues for larger account sizes....

-- Thomas Bulkowski

Book review: Day Trading the Currency Market, by Kathy Lien
Book review: Forex Patterns & Probabilities: Trading strategies for trending & range-bound markets, by Ed Ponsi
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