Sep 102011
 

This week was a great trading week for me.  I had 3 days where I made 10 pts on ES.  I came close on Friday (7.75 pts) but didn’t want to jeopardize a great week trading the volatility yesterday.

Let’s look at commissions.  I found this particularly interesting.  In May & June I noticed my commissions were running about 15% of gross profits.  I considered that acceptable and in general any business that could get by on 15% in overhead would be ecstatic.

However lately my commissions have been even lower.  It was below 10% most days with one day at 15%.  The left column is what I made and the right column is the commissions:

You may have noticed that only two days have 10 pts ($500) on ES.  That’s because the other 10 pt day contained trades from my backup broker.  I did this because I intended them to be held throughout the day and didn’t want to interfere with my day trading.  This is one example of how I use a 2nd account.  The other is when the first broker is having technical problems.

I can attribute the lower commission percentages to a few things:

  • Avoiding fading which has a lower expectancy (and thus higher commission/profit ratio)
  • Trading with the trend means I scratched less trades and had higher expectancy
  • Being more selective with trades and trading less.  Many sessions I only had 1-2 trades.

So I’m quite pleased with that and it was interesting to see this side effect of “trading well”.

Next is my equity curve from my main broker.  I like to show this because it is direct from the broker and can’t be faked.  I wish the trading room coaches and experts would show something similar so we would know they really trade but unfortunately they don’t.  Even the guru who boosts about how “I really trade” doesn’t offer up any proof.  So I show mine just so everyone knows I’m honest.

As far as I know, I’m the only profitable trader showing broker statements (daily results & equity curve).  If you know of anyone else please let me know as I’d like to have a look at how they’re doing.

 

This includes commissions & exchange rates.  It does not include my 2nd trading account.  Which is why I keep my own excel file.  My file doesn’t include commissions, which as stated, run about 10-15%:

Last week was tied for my 2nd highest week in the 19 week period.  This tells me that I’ve made a lot of progress from a fading approach to a continuation approach.  The first 7 weeks were using a fading approach, which worked great under the rotational market conditions.  At week 8 the market was shocked by the Greece default news and the market volatility increased and it started trending.  I took a while to adjust to it but I think I’m now on the right track.  We’ll see if I can continue it next week.

I went over my results with my risk manager (aka my wife) and here is the plan for next week:

  • Have more confidence in my edge
  • Avoid sim trades.  If it’s good enough for sim then it should be good enough for real money.  Black or white.  No grey.
  • 2 contracts is now my minimum size.  No more 1 lot trading!  It’s time to step up to the plate.
  • 4 contracts is my size for really good opportunities.

 

Tomorrow I’ll take a look at my trading statistics for the past month, which are quite surprising.

 

 

  One Response to “My week in review”

  1. Great stats – I love to watch your progress!
    “Being more selective with trades and trading less.” – That has to be part of every recipe of becoming consistantly profitable.
    I think most people who read FT’s tweets think he is all the time fading but a lot of fades can also be seen in a continuation context if one takes a higher timeframe into account.
    Acutally it is not about fading or going with a trend – it is about seeing the moves from balance to imbalance, seeing acceptance and rejection of areas and then betting on the next likely area to be tested. And then execute well (easily written but hard work to do 😉

    Cheers,
    Markus

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