Two weeks ago I increased size from 1-2 to 2-4 and had a good week that tied for my best week. However the 4 contracts made me uneasy, especially with larger stops required for current volatility. So this week I decided to do 2 contracts on every trade. I had a few that were just 1 because I wasn’t sure of my entry timing, but otherwise I mostly traded 2. One example was from Friday, I wasn’t sure on the entry so I entered half position (1 contract) and look what happened:
It hit my default first target before I could move it, in just 15 seconds! After that I decided to quit while I was ahead. The MAE is correct on both trades, neither went against me a tick. Perhaps I’m making progress with my timing. Also note that the first trade was discussed in detail in my previous post.
The result for the week is I’m very happy to report last week made a new record for me, beating the previous best week (week 3) by 18%.
One interest statistic is my average daily profit. In august it was 149 euros, a bit lower than average because some of that was vacation trading when I only traded an hour or two each day. This month I’m at 295 euros/day which is double the previous month. So I’m continuing to see improvement, and what was really surprising for me was I did better this week trading only 2 contracts.
After that 15 second trade I decided to stop, not wanting to risk a loss that would ruin my best week. So I traded on sim. I tried being very aggressive and using tighter stops. I was pretty much break even and then I got a nice win and ended up positive $1k. I had only a 65% win rate yet I made much more than I typically do with a much higher win rate. I took a few things from that test:
- I need to be more aggressive
- I probably trade better on sim which means my fear of losing prevents me from letting winners run & cutting losers short
I realize that I’m not quite ready to increase size to 4 contracts. Thanks to Domenik for presenting his point of view on this. I still have some issues to work out in my trading such as cutting losers quicker and it will be much easier to work them out trading 2 instead of 4. When I feel like I have several weeks trading well, then I’ll increase to 3.
It’s been one year since I wrote a series entitled A look back on my journey and I’m working on an update. So if you haven’t read the original, you may want to have a look. Many people ask how I trade, it hasn’t really changed that much from what I wrote a year ago but I will talk about what changed. So stay tuned.