Skc, while it's useful to go back and anaylse your work, don't put too much significance on 99 trades. A bit of extreme shorterm variance either way and your stats would change significantly.
I understand. A single 5R trade would have turned the whole equation.
It was a pretty good exercise in the end to pinpoint where the issues are. Again like I said..
Profit = winners - losers - cost.
The area for improvement is in winners and to a lessor extent, cost (on a relative basis).
To me it is quite clear that I need bigger winners, with a avg win / avg loss ratio of only 1.36. The area for improvement does not seem to lie in holding onto the losers. Like to hear your reaction though...
Hello again skc, approaching 50 trades myself and will start up a new thread once I reach that # for comments and improvement.
Just curious on your approach you took with your review, and steps you put in place after it, and whether they were beneficial or not?
For mine my biggest thing is to work out a good trailing stop, one that works well most of the time, I perhaps might even look at having 2 different stop methods, depending on the type of pattern I'm trading and how long it took for form ect so that once I enter the trade I know exactly what i want to do.
I might even look into separating each pattern that I traded in groups to see if some work better then others, others might have a lower expectancy therefore only trade 1/2 parcels until the analysis is confirmed ect.
I want to be careful though not to curve fit results as the markets had a pretty good run in the last 6 months.
It's been better, but I don't think I've nailed the stop plcement yet either. In fact, my stops are probably placed at the worse place for this market on hindsight. Not tight enough to lock all the profits, but also not wide enough to handle the inevitable retracement within the wider bull run.
I will provide some stats once I close another 99 trades (currently at 86).
It's been better, but I don't think I've nailed the stop plcement yet either. In fact, my stops are probably placed at the worse place for this market on hindsight. Not tight enough to lock all the profits, but also not wide enough to handle the inevitable retracement within the wider bull run.
I will provide some stats once I close another 99 trades (currently at 86).
Seems a bit contradictory:
Maybe it's a question of strategy rather than just stop placement? Stops should allow you to meet your ballpark target if the trade goes well. Do you find you're getting cut short too early, or are aiming for smaller profits but keeping stops loose to try and luck onto larger moves?
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