Free automated trading journal and performance analytics for MT4/MT5
FXaudit is a website where you can find a wealth of information on financial markets, latest news and analysis, brokers and expert advisors reviews. You can access high-quality educational resources as well. However, the main reason why traders use this service is because of their automated online trading journal and performance tracking tool.
FXaudit journal fits perfect for swing trading as well as scalping and day trading, as data is updated automatically. Here are some key features of this tool:
- Beautiful charts showing your performance over time, starting from your account opening
- Trading results for forex pairs, crypto assets, stocks, and futures. Everything that is present on your MT4/MT5 platform
- Free service, no hidden charges
- Fully-automated updates, that simplifies your trading routine. No more boring manual data input into your spreadsheet journal.
- All the data you need with in-depth analysis. Which trading hours of the day are most profitable for you? What is your most profitable instrument to trade over time? What trades do you execute better: shorts or longs? All trading activity is analysed in one place with no additional effort.
It takes less than five minutes to register and then the platform uploads and analyses all your past trading performance. That gives you insights on where to improve, while the tool continues to track your results.
How important is it to journal your every trade?
Not only do journals help track your trading performance, but they also make sure you are sticking to the trading plan. While you may think bad results are only caused by poor trading strategies or patterns it is not entirely true. Many traders find it difficult to follow their initial risk management and setups, thus suffering large losses.
When you keep a journal, you can clearly see how you are investing account money in every trade. This helps you mitigate risks and manage your funds more efficiently.
What is a Forex trading journal?
A Forex trading journal is a record of all your trading operations. Apart from being a personal performance-tracking tool, it also helps you analyze your trading style, thus allowing you to make informed decisions in the future. You can manually create one using a spreadsheet, detailing different parameters in tabular excel format, or just by using a sample that you can find on the web.
Alternatively, you can automate the entire process using a specific automated online journal tool for forex traders. You just need to access your trading account on MT4/MT5 and install a platform plugin. This will provide you with all your trading stats in one place.
What should be in your Forex journal?
A day trading journal should cover the entirety of your activity. Paint a clear picture of what you are doing in the market and check the outcome you are getting. Whether you are filling it automatically or manually, you should include the maximum possible information.
Instrument: what do you trade?
The first thing you need to include in your online trading journal is the instrument. This will help you track the performance of each asset individually.
Date and time of transaction
As you know, the conditions in the Forex market keep changing rapidly. To understand when you entered the market, you should mention the date and time for each transaction in the trading journal.
Position: what is the size of your trade?
Recording the position size will help you assess whether you are religiously following the risk and money management. Looking at the positions in a trading journal will let you figure out how much risk you are taking.
Entry / Exit points
The fundamental goal of Forex trading is to buy at lower prices and sell higher. Therefore, any Forex trading journal must include the entry and exit points for each order.
Every trading performance tracking tool should mandatorily contain the outcome of your trades. Recording the gain or loss suffered in the particular currency, crypto, futures or any other asset is vital.
How do you keep a Forex trading journal?
It is a pretty straightforward process, but keeping a trading journal can be time consuming. Write down all the parameters mentioned above after each trade or at the end of your trading session. Being consistent is the greatest skill of a trader, and it starts from tracking your performance from day to day.
While you may know what is a trade journal, constructing one manually from scratch is an entirely different thing. Including all the parameters in the form of columns and building formulas for analysis can be challenging. However you can find an excel trading journal template and customize it for your needs, afterwards.
Keeping a journal manually can be time-consuming. Also, you need skills to build the charts in an excel trading journal. FXAudit makes things simpler by automating the entire process and creating comprehensive reports online.
Relevant metrics that should be in your trading journal
Let us try to understand the relevant metrics in an automated trading journal with the help of examples.
Alt: Performance chart on FXAudit.com
Here, we can see how the FXAudit performance tracker highlights different metrics for one of the accounts. Average drawdown tells us about the risk and overall volatility of a specific trader’s performance. Basic journal requires simple daily and monthly gains metrics as well, preferably in charts.
Alt: Advanced trading statistics on FXAudit.com
Advanced automated journals can count average win and loss, rate of return, pips earned and lost in most significant trades. Additional metrics like standard deviation and sharpe ratio, average holding period can be helpful as well.
How to use your journal to analyze and boost trading performance
Keeping a Forex trading journal allows you to identify winning and losing patterns. Here is how to use trading journal to improve your trading performance:
- ● Find your strongest points. Figure out which setups, timeframes and instruments work the best for you. What hour or day gives the best results according to your strategy. This will let you point out the best trading setups so you can reach your targets consistently.
- ● Сut your weaknesses. Point your biggest losses and what caused them.
- ● Adjust your strategies. Being curious about good strategies showing bad results? Try to dive deep into your trading activity, to see if you have any risk management or position sizing problems. Sometimes just switching from market to limit orders can create a huge difference.
- ● Analyze your trading performance chart. As a trader you always try to find correlations and patterns, why not to try it in your own account performance? Comparing your growth chart with the major index or a favourite instrument, helps to find the best market conditions that fits trader’s mentality
What is the best: Forex trading journal tool or excel/spreadsheet manual journal?
Without any doubt, using trading journals and performance tracking software gives you a visible edge over those who depend on manual records. While filling in the details manually, you are prone to human errors. Besides, it can be time-consuming to fill them up after each trade, especially after a hard trading session.
A free online forex trading journal like FXaudit automatically creates all reports for you, along with charts and advanced performance insights. It provides much deeper analysis since it is difficult to calculate the advanced parameters on your own. Also, it publishes the latest news and analysis related to the financial markets and this helps you with the decision-making process.
Michael D. Lundberg
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