Jan 042011

Yesterday in  Am I trading well? I described how I’m tracking my trading with a focus on “trading well” instead of expectancy & other metrics.  The reason is if I’m not trading my plan well then the metrics are irrelevant.  So far I’m finding this approach very helpful.  Here are the results from yesterday:

In the morning I moved my stop on my stoxx trade.  It ended well (positive) but I didn’t trade well.  I studied this and put in place the excel spreadsheets I showed yesterday.

I’m happy to report I only had one trade in the afternoon that I didn’t trade well.  After stopping out twice on ZN, I reached my loss limit for that market yet I took a second attempt on the 2nd trade which was not allowed.  This is a new rule for me and I can understand how I overlooked it, after all I got stopped out and desperately wanted to “make it back”.  But this is precisely why I have a loss limit for each market.  If I stop out twice in a row then the market isn’t behaving normally and it’s best I wait until tomorrow.

Also of interest is that I traded not well in the morning yet made money, while I traded well in the afternoon and ever trade stopped out.   I’m actually happier with my afternoon trading despite losing!

On my first ES trade it missed my target by 1 tick and I followed my plan and my stop got it.  That’s a tough break but I stuck to my plan.

Yesterday was a risky day for two reasons:  First it was a bank holiday in Europe, second it was the first trading day after a long holiday period in the US.  There was a lot of business to do and the market was not behaving normally.  So I don’t get upset about my loosing day.  If this happens the rest of the week then I will re-evaluate.  Until then I continue trading my plan.

  3 Responses to “Review of Jan 3 2011 trades”

  1. A day means nothing. Even a week means not much. I am going to analyze my stats every quarter, and some core benchmark every month.


  2. I will agree that a day means nothing but I think a week is meaningful. If I average 2 trades per market per day and trade 4 that makes 8 trades/day so for a week that’s 40 trades. that’s enough to be significant to me.

    The reason I want to track it weekly is so I can make adjustments for the following week. I don’t want to wait until the end of the month to fix something that’s broken.

    The risk is I adjust something that’s not broken. 🙂

    For example if I finish this week negative my trading plan says to cut my size. In that case I can’t cut 1 contract so that means I’ll go back to sim for a week and earn the right to trade real money.

  3. Michael,

    Great tool….I am using this as a best practice and including it in my new 2011 Trade Log. Thanks.

    On your trading notes, I agree we need to stick to discipline and wait for targets and stops to be hit, but once u get to a position where u are 1 tick from your target (it also depends on how far is your target of course), it is NOT stupid to manage the trade to at least ENSURE u are not going to incur in a loss. If u have a 6 tick target, u are risking 5 ticks to make an extra tick, so if the trade moves 80% against you, maybe u trade well but price did not get EXACTLY there, but technically u did things right.

    So including a rule (so u are not undisciplined) that once u get to 1 tick or 90% of your trade u move to breakeven I believe is wise.

    Just my thoughs……see u.

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>