Trade of the week: end of year result - up 31.45%
Having closed out our short orange juice, long Lloyds Banking Group and AUD/USD trades, we ended the year up 31.45%, risking 2% per trade and being right around half of the time.
(Partial video transcript)
Previous trading outcomes
Axel Rudolph: Hello and welcome to this week's "Trade of the week" on Monday the 16th of December 2024. Let's have a look at the trades we had on over the last few weeks and how we got out of those. So the first of these is my short orange juice trade, dating back to Monday the 25th of November. And you can see here that we got out of that last week around 482 or so. And since then, we've risen back up again. So that trade was a slightly positive one.
And then we had another trade on, which was to go along the share price of Lloyds Banking Group. And you can see here that we had a stop loss not below the last relative low here, the August low at 52.72, but because we had another low, which was slightly lower at 52.34, the June low, we placed it below there. And we did the right thing, because as you can see here, Wednesday we dipped down to 52.56 intraday and had you placed your stop on an intraday level below the August low, you would have been stopped out. Well, we didn't get stopped out and instead we rallied all the way up to our upside target earlier this morning at 56 pence and got out of that trade with a profit.
And then last week, I basically came up with a long trade on the Australian dollar versus the US dollar (AUD/USD) for fundamental reasons and also some positive divergence technically here. But we got in around I believe for $0.6415 on a retracement. We were trading higher on that day last Monday. But since then, as you can see here, we're heading towards our stop loss level, which was placed at $0.6345 below the August low. And yes, it was hit on an intraday basis, but not on a closing basis. But because we're coming to the end of the year, I'd like to close this one out current levels with a loss at the moment.
Trade of the week 2024 summary
And this brings me to a summary of this year's "Trade of the weeks". Both Chris Beauchamp and I have come up with these trade ideas and I'll just show you here some stats. And we'll go into these in far more detail next week. But you can see here that even though we've had a few series of negative trades back in May and July, we do end up with a nice profit for the year.
So we risk 2% of capital per trade. And you can see here that we basically managed to make a return on investment of 31.45%, risking only 2% of capital per trade and being right about half of the time. As you can see here, we are 21 winning trades and 20 losing trades. So this is the equity curve. You can see here, up 31%. on "Trade of the week". So you can actually make money being up over 30% by the end of the year by just risking 2% of capital per trade, even if you're right only half of the time. But more about that next week.
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