Jul 272011

I quit tracking all the metrics on each trade simply because a couple of scratches or big losses completely distorted the metrics.  I think these metrics are good if the data is stable.  If you’re a consistent trader for a long time then your performance may be stable.  Mine isn’t.

Instead, I’ve been doing some stats on my daily P/L.  This is far more interesting as the effects of scratched trades have no impact.

Here are the stats for June:

For simplicity, these figures do not include commissions.  For June my commissions were 15% so you can lower the amounts by 15%, 18% for July.

The daily average was good, although less than May.  The volatility due to Greece tripped me up a bit.  The win rate was very high.  My avg loss was quite high due to a big losing day.  That made for a bad avg win / avg loss ratio.

I’m quite pleased to say that I’ve improved for June, although at the expense of my daily profit.  That’s ok because I’m not focusing on profit right now.  I’m focusing on risk.

The win % dropped as I took a few more losing days this month.  However the losses were smaller, 212 euros this month versus 749 last month!  That’s quite a difference.  And the win/loss ratio is 1.51 which is acceptable.

If I had to pick between June & July, I feel much better with July’s stats.  However, I think if I can cut my losses a little quicker, I can improve the win/loss ratio and possibly have fewer losing days which would improve the win rate again.  If I could get something in between 65-86% with an avg win/avg loss of 2.0 would be ideal.  So that’s what I’m shooting for next month.


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