Dec 052010

Today was my first losing week since I started my new trading method (based on FT71) October 29.  A few things came together to result in the loss.  I feel the most important thing for me is to learn from my mistakes and that’s why I’ve been spending a lot of time on the trade logs, stats, the journaling, & trade review.

Here are the weekly results:

I added a “Day PL” on the spreadsheet which adds both Bund & ES together.  It says “day” but it’s really the reporting period which in this case is week.

Here are the observations from this week:

  1. Bund stats were very good.  Profit Factor 12 and average win / average loss was 3.26.  Both excellent stats.  My expectancy was 3.24 ticks which is up from November’s average of 2 ticks.
  2. There were fewer trade opportunities for the Bund.  It spent a lot of time balancing during the European morning.  On Friday I didn’t take any trades.
  3. ES metrics were terrible as I had two losing days.
  4. I had one “accident” where I accidentally entered a short with double my size & it stopped out.
  5. I elected to not take a stop and averaged down, on a day that ended up being a strong trend day.  Finally got out the next day with a 4 pt loss but I had an above average size.
  6. Aside from these mistakes, my ES trading was actually decent.  I had 9 losers which I actually like because that shows that I was taking stops.

This week I also rewrote my trading plan.  It is now complete and at only 3 pages it’s very brief.  I have named my setups so that I can track the performance of each one individually and it also helps for the review.  I’m considering publishing my trading plan so that others can follow my trades.  I’d like to make this more of a group effort where we can collaborate together.  I’m debating the best format for that.  Ideas include Twitter, trading forums (message boards), and a trading room.  I’m still working out the pros & cons of each so I’ll keep you posted.  I want to stress that whatever I choose, it will not be for me to “teach” anyone anything.  I don’t feel qualified to do that.  When I am trading 10 contracts then I’ll consider myself more qualified to teach others.  Until then I’m learning like everyone else.  I just want to stress that because I think collaboration helps the learning process and one doesn’t have to be a “guru” in order to put together a trading group (but it helps).  If you have input on that please let me know.

This week will be key for me.  I need to follow my plan with discipline.  If I can do that I’m sure I’ll have a positive week and make up for last week.

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