Thursday, October 26, 2017

Latest update on 2017 results

Just a quick update on my trades for this year.

I'm currently at a -2.95% loss for the year, just below breakeven. I'm not really happy, but it could be alot worse. 

This whole year has basically been a grind around the breakeven mark, falling behind, pulling ahead, and then falling behind again.

I backtested all my systems up to the present and dropped those that stopped performing,. I'll wait until when (or if) they return to profitablity. Waiting is free. 

It's very important to have drawdown rules in place. Reducing your risk during drawdown will allow you to survive until your trading turns around. It's boring, but it has to be done. 

To be honest, I violated my own drawdown rules a few times, and paid the price. If I had been true to my rules, I'd probably be slightly profitable by now. During August, I risked 3% on a single trade when I should've stuck to 1%. I held the trade over the weekend, and the market gapped against me on Monday morning. I lost 5% when price opened way beyond my stop loss, more than the 3% I anticipated. I might talk about this trade in a future entry as it provided a few key lessons - stick to your rules, and maybe reduce your risk when leaving a trade open over the weekend.  

It's also important to find interests outside of trading. During times of drawdown / breakeven, you'll want to find other sources of success or motivation in your life. It could be fitness, knowledge, or maybe a new skill. Don't base your identity solely on being a trader. 

Survive. Play great defence. If you truly are better, you will win in the end. And if you aren't better? A tight defence will keep you in the game indefinitely. 

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