There is a big overnight fall in the markets I follow, apparently on the back of tensions between North and South Korea. But for today's trading, markets are relatively stable, though whippy - the worst combination for me. A huge number of trading signals are generated, often on consecutive bars. The filter rules stop about half of these but I am still stuck trading in a poor market. I am typically buying near the range highs, and selling near the lows, regardless of the filter rules. Some trades suffer instant reversals - I am down before I even have time to record the fill. Periods of calm are followed by a sudden huge move (almost always against me) then a reversal. I have no other trading tactic than just sit it out. Perhaps I shoulds study the equity loss stop rule again?
So over 75% of today's trade lose money, and the few gains I do make are pretty small. Overall, the worst day since detailed trading rules were formulated and a loss of about 350 pts.
Psychologically this is very tiring. I have a headache again, for the 5th day running I have to take some ibuprofen tablets - so far, very little impact can be detected of the vitamins and cod liver oil that I started taking a few day's ago!
How soon one forgets the good trading days
Next Day's Addendum
The other main question to ask of the "worse day's trading since records began" is: have I followed the systems exactly as I resolved to do this week? And sadly, the answer, once again, is: NO
Firstly, at around 15:40 I incorrectly set up a trade on the signal bar instead of using the signal bar to generate the trade for the next bar. Inevitably, it turned out that this signal was a fine example of the efficiency of the trade filter I am using. The market reversed at the start of the next bar and by the time I realised the mistake and have corrected it, I am down 60pts
Secondly, the stress of the day finally got to me around 7:45pm and I threw in the towel. 15 losses and just 3 wins, the largest of which was just +33pts. So I didn't accept the reversal signal at 20:00 and so missed the two best trades of the day, a +105 and a +65. Tiredness, stress, or whatever, this is the secind day in a row where I have made this mistake - despite my resolution to the contrary
So the day's loss was -345pts taking the week's loss to -475. But the errors made so far this week have been worth have cost about 300pts. So about 65% of the week's losses are due to not following the systems.
On the one hand, this is a comforting result as it shows, yet again, that the systems are robust in difficult conditions - it is just a question of being patient.
But on the other hand, the results are psychologically difficult to take. To incur these extra losses from my own stupidity is quite a lesson.
Maybe I can put it all down to the tiredness and stress induced by trying to revise for my forthcoming exams. So in two weeks time, I should be trading better? But that raises the question of maybe stopping trading till then. I shall ponder on that this weekend and maybe not do anything next week.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment