Jan 012017
 

2015 was a good year for me. I really got in to the groove and my equity curve was exponentially growing up. The dotted line is the zero line.  I will block out the P/L amounts but I can tell you it’s not much.

Unfortunately 2016 was not as good. I was very busy with my consulting business, with the family, and with other hobbies, so I didn’t devote enough time to it. Then I had some bad trades and lost interest and never really took the trades to get the curve back up again.

It was a bit discouraging but if I look at my curve over the past few years, from 2014-2016 the results are not so bad. I’m in a drawdown and I just need to get going again to get the equity curve going back up.

My plan for 2017: Remove some of the discretion to make a more repeatable system. Specifically I want to:

  • Have more trades. Currently I’m very selective and then fear creeps in and I look for reasons to avoid trades and end up going weeks or sometimes months without a trade
  • Be less discretionary. I’d like to have some rules to follow and trust the system more.
  • Be more automated.  Not talking about automated execution, just more alerts so I can just verify and push a button and let it play out.
  • Backed by stats in order to have confidence I need some stats supporting what I do.

So I’m going to be working on that for a while.  If I find some good trades I’ll take them.  But this is just a hobby now and my full-time consulting work provides a good income and family time in the evening is precious, so I think 2017 will be a bit slow to start.  This is why the audio alerts are important, I don’t have time to watch the charts.  My zones indicator is really helpful here and I have some other order flow algorithms which trigger audio & email alerts too.

Good luck to everyone for your trading in 2017 and Happy New Year!

 

Aug 232015
 

I was replying to a post at BMT and I looked for an example chart to use in my reply, so I googled about volume composite and clicked “images” and took the first chart.  When I pasted the link, I was surprised that it was one of my charts from my blog!  That reminded me that I have a blog!  I had kind of forgotten.

I can’t believe it’s been over 1 year since I last posted to my blog.  So I thought I’d take a few minutes to write an update.  A couple years ago I accepted an exciting consulting offer to redesign the architecture for a bank.  It’s been a great experience for me.  It’s also about the time we had our son.  Between the two I haven’t had much free time.  I stopped participating in forums (except once in a while someone wakes up an old thread and I get an email notification), etc.

But I still kept on trading.  I did get very selective with my trading and only trade when I’m home and the markets are moving.  This results in less trades, but it has been profitable.  I have a profit for last  year and this year as well.  So I’m happy about that.

A week ago I had some time to think about all this while laying on the beach in the Cote d’Azur.  I wrote out a list of goals for myself.  I want to win $1 SNG (poker) (I’m currently slightly better than breakeven for $0.25).  I want to redo my CV for my consulting in order to offer more services to my clients such as Agile Coach.  And then I thought about trading.  What do I do about trading?

My trading partner is taking some time off and when that happened I scaled back a bit too.  I miss many trades which is a shame because I see many that would have qualified as a setup and paid off nicely.  I felt like I was letting good opportunities pass me by, and with a little more attention I could turn it into a serious income.  So I added trading to my list and decided I wanted to make $500/month consistently.  Once I achieve that I can scale up to 2 lots.

In the past when I was trading full time I was trading 2 lots and was making money but unfortunately it wasn’t consistent.  So a few years ago I decided to accept less and go for consistency.  And a few years later I think that is the right approach for me at this time.  Kids have activities, I have a weekly class, and I help out a lot around the house.  So I had to refine my method to make it more hands off.  Typically I set up audio alerts in my areas of interest and wait for the market to come to me.  Then based on what I see, I choose to enter a limit order and go about my activities.  It’s a compromise, but it allows me to trade evenings in addition to my full time consulting business and my family.

So now I think it’s time to step it up a bit.  I want to be less passive, take a bit more risk, but most importantly, not let perfect setups pass me by.

If there is interest, I will update my blog with my results.  I’m not really interested in promoting myself, advertising my blog, posting on forums, etc.  I realized that was a hobby but not really a business.  Well some shady characters have succeeded in turning that sort of thing into a business, but I prefer not to go there.  Time is limited.  Since I’m profitable, any extra time I have is either spent trading or doing hobbies.  I’m still not sure playing poker for 30-40 minutes to make $1 is worth it, but it’s fun at least.

So if you’re still here after all these years, let me know.

 

 

 

 

May 302014
 

April was a good month for me so the challenge was to keep it up for the month of May.   I thought May gave me less to work with.  It seemed the market balanced in the last half of the session more often.  Many days I didn’t even look for a trade.  But I still managed to do ok.  My goal is for a profit factor > 2 and this month it was 1.78, slightly short of 2 but still good.

Yesterday I had bad luck, stopping out by a tick and missing a nice run up:

2014-05-30_2127_thursday_loser

I followed my setup perfectly so I didn’t get upset but I was still disappointed.  Today I got a chance to take another good trade and this time it worked out.  It’s good to end the month on a great trade:

2014-05-30_2128_friday_winner

So there are two examples of trades I took.  I’m trying my best to detach myself from the results and just take my setup and follow my rules.

And here are the May results:

2014-05-30_2147_may_results

I’ve been pretty much keeping to myself.  I collaborate with my trading partner but other than that I don’t participate in forums, read trading books or websites, or anything else.  I don’t even think about trading.  I just turn on my monitor when I get home, look for a setup, set an audio alert in an area to do business, and go about my evening activities.  I initially felt this  “hands off” approach might be inferior than staring at the screen for hours “getting context” “reading the bars” “seeing the action” and all that stuff, but now I think otherwise.  Being detached has helped me to stick to a simple setup and just grind it out.

I actually only took trades on 9 days this month.  The rest of the days I either didn’t see a setup, or was not around the house due to my activities and being taxi for the kids.  $250 isn’t that much but with consistency I can slowly increase size.  And that’s where this gets interesting.  But one step at a time.

Good luck to you with your trading.  Cheers.