I am writing this review on technical trend trading FCPO on BMD.
Time flies and it is now the 7th edition of 1 Year 1 Post on CPO Futures blog about technical trend trading indicators that gives free early trade signals and theoretical P&L with notes in Year 2026.
Here is my annual review covering the prior year's performance and insights, including my reflections on :
- CPO Futures blog's performance
- Possible mistakes and importance of quick remification
- MLTs and CRR the two main principles
- Long-term investments posibilities
Year 2025 had the lowest theoretical accumulated profit in last 6 years as shown on the CPO Futures blog. It only generated 271 points or RM6775.00 gross profit per lot, without mentioning the loss in Year 2023 as readers traders can refer back to the CPO Futures blog.
Year 2025 had 37 Stop And Reverse Trades (SAR) which was high too after seeing the last 6 years yearly SARs. When a Daily Technical Trend Indicator had a high number of SARs in a year, it is probably not generating enough profit to cover trading cost and "living" cost too. Imagine you only make RM5,000 per lot per year, you may need to have more positions to generate a good fortune for that year, comparing to about RM70,000 per lot per year that had happened in year 2022. There was a BIG difference between 5k and 70k !
Gap up Gap down on FCPO prices during opening can technically kill traders that use the indicators and that is why I keep emphasizing the word "theoretical" on CPO Futures blog and the two things - MLTs & CRR. Strong mentally trading with "Quick" decisive stop and reverse trade is very important on futures trading if follows strictly on technical trend trading. Traders must at least liquidate existing positions by placing stop orders. Nevertheless, stop orders in trading platform may sometimes not get done one day and traders must act quickly by keying orders themselves, not just 100% depend on the trading system.
Multiple Losing trades (MLTs) and Capital Risk Ratio (CRR) also killed traders if traders not monitor closely especially the above gap up gap down prices that might possibly fail traders to put in new orders and stop orders due to short of margin in trading accounts after losing money in so many trades in a row and not enough capital to do trade again. Traders won't decisively cut loss when market prices gap up gap down since he/she might be mentally "blur" and surely not to cut huge losses immediately and reverse the trades. Therefore, traders have enough risk capital in trading accounts and not over trading is crucial to traders who wish to succeed in long term technical trend trading without being affected physically and mentally from the trading system.
Last but not least. try do a soul searching yourselves any long term investments possibilities other than CPO futures - value investing ! Life ! Stay Healthy & Trade Wisely ! Wishing all readers traders have another good year ahead and see what will be the theoretical accumulated P&L at the end of year 2026.
Cheers!