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).
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