The gains in February and March were due to shorting Crude Oil and Eurusd respectively. These 2 positions were established since late 2014 and were closed early this year.
The reality of trend following is to survive the small losses and wait for a trend to pay it all. The only way to do this is sold risk management!
Since FOMC, most of my long dollar positions have been stopped out.
I am currently
Short: Eurusd, Natural Gas, Wheat
1. Give the few positions I currently hold, I don’t expect any huge spike in equity over the next few months. Going forward I would probably encounter a draw down while establishing new positions in the markets. To keep these draw downs manageable, I need to keep my risk tight.
2. You need to focus on the time frame you are trading off. If you are entering off the 1 hour, 4 hour and daily you will get many trading setups which will lead to frustration and analysis paralysis. Stick to one entry time frame for a start.
3. When the higher time frame is in a congestion (like flag pattern), chances are the lower time frame will be a chop market. So staying out of the market will not be such a bad idea.
So, how was trading for you early this year?