Trading Update: Jul26

Another (long) week finished.  Bit of a rollercoaster ride this week.  Final statistics:

7W – 10L – 5BE.  Net gain = +2.69R, average RR ratio 1.95

 

Over the last 3 weeks I did 70 trades and effectively broke even (+0.25R gain).

Insightful points

Bid-Ask Spread & Commissions – Assuming an average of 0.175R/trade in transaction costs – I spent 12R on the bid-ask spread.  On rough calculations, using some alternate brokers, I should be able to reduce that 12R to 8-9R, effectively adding 3-4R to the bottom line.

Quality of my trading – The last 3 weeks did include some bad trading.  I am definitely improving as I am going along. Thus I am fairly confident that I will see a steady improvement in the results.

  • The trade management, that is how to move the stops and when to take profit, continues to be very challenging to me
  • I will focus on making my entries as good as I can = upping my execution game
  • I will be stricter with my setup selection
  • In terms of position management, I will put together a simple mechanical approach for now (as my trading coach suggested)

Increased trading hours – I will also aim to trade from 6am to around 4.30pm every day (taking a good break in the middle to refresh my energy levels) thus allowing me to give a good shot at the London/New York crossover – and consequently maximizing the amount of setups I can take – as opposed to haphazardly trading into the early afternoons in an unstructured manner as I have been doing thus far

Trading post-news – I will try to take more news-based trades now that I have a template for those.  These trades will still revolve around EMA, but will zero in on the 1M charts (I never thought I would say that).

So in a nutshell – my path to increasing returns:

  • Longer trading hours -> more trades
  • Improve news-trades -> more trades
  • Finer selection -> fewer trades but better quality
  • Lower trx costs -> automatic increase of 1.5-2R per week

 

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