Dec 252012
 

Christmas came early for us this year.  Our baby boy was born a few weeks early, and just came home from the maternity this Christmas morning.  I was going to take a few weeks off of work but my client didn’t renew my contract for 2013 so I may end up with even more time off.  And I really need it.  Some personal projects have been on hold for a while now due to lack of time.  So I’ll be quite happy to have several weeks off.  And that’ll also give me a chance to do some more trading.  Of course I’ve already sent my CV for a position so if the client accepts I could start any time.

Speaking of trading.. my trading has gone very well.  Not that I’ve made a killing (I haven’t), but my “system” is working.  I feel like I’ve finally got something that is repeatable.  And that’s something I’ve been missing before.  It’s also low-risk and low-stress.  I’m not executing perfectly, there is a lot of room for improvement, which is encouraging because the results are already good and if they get better that will be great.  My main focus is repeatable (consistent) and low-risk.  This combination will allow me to start increasing size.  I plan to do that early next year, but I’m not in a hurry.  I want to improve my execution.   I’ve passed on a few setups because I didn’t have confidence, only to watch them work.  I know increasing my size will cause me to doubt my setups even more so I want work on that and get some more data before increasing size.  If I can demonstrate more consistency then I’ll have more confidence.  At this point my method seems pretty sound so it’s psychology now.  I’m up +10 pts in the first 3 weeks of December, and there were many days I didn’t trade and many days I was here but didn’t take a trade.  So I think I’m averaging about 1 pt/day.  Which will be great if I can scale that up to 4 contracts and more.

In the next few days we’ll be giving bottles and changing diapers around the clock.  And I’ll be enjoying every minute of it.

Merry Christmas!

 

Dec 012012
 

I haven’t been blogging lately, but I have been trading amongst other things like work, family time, homework with the kids, exercise, and playing flute & piano.  It’s a turbo-charged schedule during the week and if I am to dedicate a couple hours/day to trading, it has to be worth it.  And so far I think it is.

November was a great experience for me.  I simplified my trading quite a bit.  Actually that started on November 2 when I had a full day to trade.  My goal was to simplify as much as possible so that I can focus on execution and eliminate costly discretionary mistakes.  And the results are very encouraging.  I ended up 11.25 pts.

Interesting enough I had 10 pts in losses on two days that were plagued with mistakes.  Each time I make what I believe to be a preventable mistake, I take some notes and update the plan to try to reduce the chances of it happening again.  Without these two bad days, I would have made twice as much on the month.  That’s a really powerful concept for me.

I traded 1 lot and I go for 2-4 pts.  My largest winner was 3.50 pts and largest loss was 2.25.  My average win was bigger than my average loss, which has been a priority for me.  Since these metrics are skewed by scratches resulting in small wins, I think the metrics are very positive.

Here are my stats, I’ve drawn arrows to the stats that I am watching the most:

 

My goal is to improve on these stats in December by letting my trades play out more (less scratching) and reducing preventable mistakes.  If December goes well then January I will go to 2 lots.  I’m taking it nice & slow.  December is going to be busy, we have a major project deadline at work, kids have Christmas parties, shows, and concerts, etc.  And don’t forget Christmas shopping.

I’ll write more when I can.  I want to thank everyone who is still along for my adventure and I hope your trading is going well.

PS: A few more thoughts:  Eliminating half of the losses on just those two big losing days would result in a profit factor of 2.0.  With a simple, repeatable method that has low risk and drawdowns, one could trade 4 lots or more easily.  That means with just slight improvements to my trading, I could generate a potential $3200/month in trading income just trading the last 1-2 hours of each day.  And going to 8 would double that.  So my focus isn’t on squeezing out every tick on my winners, but just having something repeatable with low risk so that I can start increasing size.  Thanks to Max for sharing his ideas with me about this concept.