Closed EUR/CHF and GBP/CHF Shorts: Best. Trade. Ever.

As I was saying earlier this week, I have been stockpiling in EUR/CHF short in my demo account (Fig. 1). Aside from that, I've also stocked up some GBP/CHF shorts this week (Fig. 2). Both positions are now closed because of my adjusted stops. These positions have single-handedly lifted me half way out of a deep drawdown in my demo account. These trades netted me about 1.5% in my demo funds. Yes, you read that right, a meager 1.5% gain and I'm calling these my best trades. No, it's not like I haven't had good trades in terms of the money made or the fastest pips. These shorts aren't even close from just looking at the numbers. Heck, it would have been a lot more profitable if I shorted Euro and Pound with a Dollar or Yen counter this week. So why? If you read my post on measuring trading performance, you may recall that I don't measure success by profit alone. It is performance in terms of amount risked that matters in trading. These shorts in EUR/CHF and GBP/CHF are my best forex trades ever (in my 4 months of fx trading so far) simply because I risked no more than 0.2% at any given time (most of the time there were no explicit risk as my stops have locked in profits) to make that 1.5%. 1.5% gained by risking maximum of 0.2% gives a Reward/Risk ratio of 1.5/0.2 = 7.5! There were several occasions when I had doubts to add to my position or were pondering about taking profits to settle my worries. Despite all of that, I soldiered on, managed my stops like they were my babies, and piled more into the position according to my plan and trading setup (Fig. 1). By the time I started scaling out, I have built my biggest (non-scalp) position. That gave me a lot of freedom in scaling out as you can see on my exits shown in Figure 1 (red dots). This Reward/Risk ratio is the highest I have achieved in recent memory. I have always read about 10x or even 20x trades at the SMB Capital blog. Those guys can achieve this type of reward/risk ratio day in and day out (I'm not affiliated with them). I guess that's the difference between the pros and me. This is definitely something I am strifing to do myself. Executing consistently high reward/risk trades. How I might do that? By continuing to improve on my trading skills and my understanding of the forex markets. [caption id="" align="aligncenter" width="580" caption="EUR/CHF, 3-hour"][][][/caption] [caption id="" align="alignnone" width="580" caption="GBP/CHF, 3-hour"][]1[/caption]