Sep 252011

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:

  1. I need to be more aggressive
  2. 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.


  5 Responses to “New weekly record”

  1. Go on! You have made a great jump forward.
    And do you remember our first skyping several months ago when you had written this email full of doubts? This was the turning point. When the night is the darkest break of dawn is the closest we say in Germany.


  2. yes I remember that. I will go back and find it in my mailbox for a laugh. There have been many times I thought it was hopeless. So I hope others who may feel this way from time to time will so that it’s normal and if one is really motivated and passionate it will happen. Just takes time & lots of work.

  3. Maybe perseverance counts most in almost every endeavor.

  4. Nice work on your new record Michael. I also had my best week on a per contract basis last week as I have dropped to one contract. I am very excited. Focusing on that 2:1 win loss ratio and increasing my stop has really helped me. Thanks for that concept or mind set.
    I had sort of a rough day today as I was stopped out twice. Once premarket in globex and another shortly after the open. I then caught two nice trades and was able to finish the day positive to start the week out. Once again I was too anxious and got in too early.
    I hope you had a good day trading.

  5. hey bud, I decided to stop by your blog and see how you were doing. I am glad to see you making progress and having achieved new equity highs. One comment about the being more aggressive part: only be more aggresive when you know you have the edge to do so, and by being more aggressive I presume you mean increasing size.. you seem to not have issues cutting size when uncertain 100% about the trade, but if you are certain (100%+) then double the size and go the full 4 or 6 contracts on that specific trade.. that will help you even more with the equity curve.. just my 2 cents.. have fun, and good trading next week.

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