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Analyzing a Consistently Profitable Forex Account.

In this post, I will analyze an account that I traded using the Thumb Money method on a small live account between September 2019 and July 2021.

1. Keys Stats

During the 20 month trading period over 400 trades were executed which resulted in a profit of $912.57. The size of the account fluctuated during this period but did not exceed more than $800 as depicted in the below snapshot. The significant return on profit was the result of carefully selected opportunities in which the Thumb Money method would the be applied to. The aim was to keep the account at around $500 so profits were withdrawn when the equity exceeded that amount and more money was added during a drawdown in the account. This part of the strategy that led to the success of this trading period.



2. The Cumulative Performance


The trading period for this account started off very well though unfortunately got caught in a adverse market move which resulted in a significant drawdown. After this incident I began began to trade more conservatively only selecting the best opportunities to apply the Thumb Money method. During 2020 there were numerous opportunities which I took advantage of and its during this year that the bulk of the profit were banked.



3. The Currency Pairs Traded


Overall 12 currency pairs were traded with mixed success. Per the below chart CADCHF opportunity generated the most profit during the trading period followed by XAGUSD (Silver). Each opportunity had a set price target as to when it will expire, some opportunities expired in a day or so and others remained valid for many months.

4. Risk Management and Draw Down


Many traders would and should bulk at the drawdown of this account. To me this a prime example of well managed account. Please note I do not put all my funds into one account to trade. I have many accounts that feed into my overall fund. If one account implodes it does not affect the rest of my trading equity. I rarely trade with stops in fact I hate trading with stops because I only trade very high probability opportunities whereby if the market goes the other way I add more equity and wait for the market to return to a happier place. In reviewing the raw data which can be found at the bottom of this post I did not set a single stop loss for any of the 402 trades.

4.Summary


This analysis is but one example of the power of the Thumb Money method when applied to the correct opportunity. One of the biggest mistakes new Thumb Money traders make is that they assume that the method works for any Currency Pair at any time. There isnt any magic to finding the best opportunities but as a rough guide look for pairs which are at extreme historical highs or historical lows. No indicators, or traditional technical analysis was used in the making of these profits.


If you want personal coaching on the Thumb Money method feel free to reach out to me and book a free 20 min introductory session.


Author Ryan




Appendix


A. Brokerage Raw Data

Account A Raw Data
.csv
Download CSV • 62KB


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