Summary: Final part of the systematic forex series. Covers the weekly review protocol, system iteration rules, and a continuity method to keep improving after the series ends.




Title: Forex Trading System Series: Part 5 – Weekly Review & System Iteration

This is Part 5, the final part of the systematic forex series. You have completed Parts 1-4. Now we close the loop with a weekly review protocol and a system iteration method that you can continue indefinitely.

1. The Weekly Review Protocol (Every Friday after market close)

Block 60 minutes on your calendar. Do not skip. Follow these steps in order:

Step 1 – Extract the numbers (10 minutes)
From your journal (Part 1), calculate the last 5 trading days:
  • Total R-sum for the week

  • Win rate (this week only)

  • Profit factor (this week only)

  • Maximum drawdown (peak to valley within the week)

  • Number of trades that violated pre-trade checklist (Part 4)


    • Step 2 – Review against limits (10 minutes)
    Compare weekly metrics to your system rules:
    | Metric | Acceptable | Warning | Stop |
    |--------|-----------|---------|------|
    | Weekly R-sum | > +2R | -2R to -5R | < -5R |
    | Win rate | > 40% | 30-40% | < 30% |
    | Profit factor | > 1.5 | 1.0-1.5 | < 1.0 |
    | Max drawdown | < 8% | 8-12% | > 12% |

    Step 3 – Qualitative review (20 minutes)
    Answer these three questions in writing:
  • What was the ONE best trade this week, and why did it work?

  • What was the ONE worst trade, and what rule did I break?

  • What market condition (trending, ranging, volatile) dominated this week?


    • Step 4 – System iteration decision (20 minutes)
    Apply the one-change rule: You may change only ONE parameter per week. Do not overhaul.

    Allowed changes (choose one):
  • Adjust entry filter (time, volatility, or trend threshold)

  • Adjust stop loss distance (by increments of 0.2x ATR)

  • Adjust position sizing multiplier (fractional Kelly coefficient)

  • Add or remove one confirmation condition


    • Forbidden changes:
  • Changing reward-to-risk ratio mid-week

  • Adding multiple new indicators

  • Removing stop loss rule


    • 2. The Iteration Log (Create this spreadsheet)

    Track every system change you make:
    ```csv
    Date, Parameter Changed, Old Value, New Value, Reason, Next Week R-Sum
    2026-06-13, Stop Loss ATR multiplier, 1.5, 1.3, Too many stop-outs on pullbacks, TBD
    ```

    If after two weeks the change does not improve R-sum or drawdown, revert it.

    3. Monthly Deep Review (First Saturday of every month)

  • Step 1 – Run a backtest method on your updated rules using the last 50 trades

  • Step 2 – Calculate new expectancy and maximum drawdown

  • Step 3 – Re-run the Kelly formula (Part 3) and adjust position sizing if needed

  • Step 4 – Check if your system still works on three different pairs (avoid curve-fitting)

  • Step 5 – Write a one-paragraph summary: "My system's current edge is X R per trade"


    • 4. Continuity After the Series Ends

    This series is designed to be self-sustaining. Use this loop every week:

    `Journal → Weekly Review → One Change → Backtest Change → Repeat`

    To continue iterating on your own, use this template command for your own records:
    `WEEKLY_REVIEW: [YYYY-WW] | R-Sum: X | Change: [parameter] | Next check: [date]`

    5. When to Stop and Restart

    Stop trading completely if:
  • Two consecutive weeks with weekly R-sum < -5R

  • Maximum drawdown exceeds 15% from peak

  • You skip two consecutive weekly reviews


    • Restart process:
  • Return to Part 1 and rebuild your journal from scratch

  • Trade only demo for 2 full weeks

  • Resume live trading only after two weeks of positive R-sum on demo


    • Final Action Step:
    Complete your first weekly review using the protocol above. Write down your ONE parameter change for next week.

    Reference:
  • Kaufman, P. J. (2013). *Trading Systems and Methods*. Wiley.

  • Pardo, R. (2008). *The Evaluation and Optimization of Trading Strategies*. Wiley.