10/24/11 Trade Results: 4 trades, $245 Profit

I want to spend a little bit more time on this trade results post than normal. Today was the first day of trading the M6E (Micro-Euro currency futures) in conjunction with my standard instrument, the NQ (Nasdaq). As a trend trader, you should be able to apply your system over all markets, this ensures that the system is valid and allows for diversification of risk.

I chose the M6E over the 6E because it allows you to apply scaling into and out of positions due to the smaller tick value, which is 1/10 the 6E. Therefore, in theory, to trade the equivalent of 1 6E contract you need to trade 10 M6E contracts. Using the M6E route, you are able to scale into and out of the overall position. I am still applying the 4 trade rule, but with the M6E I consider the overall position as the trade not the individual trades scaling into the position. For example, if I go long with 1 contract on the M6E and then add another contract long after I'm 20 pips in the money and then 1 more long after another 20 pips, that is 1 position or "1 trade".

I had 4 positions today, 2 in the NQ and 2 in the M6E. Below is the chart for the M6E positions: