4/9: Discipline with valid setups -> Good Trading Results?

Another trading week has come to a close.

Some really nice stats for the past fortnight, which marks the period since I have really focused on ONLY taking valid setups.  I wish I could achieve results like this on a consistent basis – I’d be one happy trader!! Though it seems taking only valid setups is definitely helping me – what a surprise!

  • 45 trades opened and closed
  • 41 trades were based on valid setups – and the few that were deemed invalid were closed very promptly
  • That’s a pass-rate of 91%
  • 19 winners, 4 scratches, 21 losers
  • Win rate of 47.5% (excl scratches)
  • Average winner +0.88R, average loser -0.52R – thus reward-risk ratio was 1.69:1
  • Net result +5.9R
  • Average transaction cost came in at 4.27%
  • Interesting split by instruments –
    • DAX (14 trades, return of +6.61R)
    • Cable (4, +3.6R)
    • All others (27, -4.34R)

And in other news….

  • Review of Trade Management Approach: As I have mentioned several times already, I am now shifting my focus onto the aspect of trade management as I believe my bottom line can be improved significantly if I introduce some more empirical-based structure into my trade management approach.  With the other bonus being my work day becoming a lot easier emotionally meaning i will be feeling better and sharper, and looking for more opportunities!
  • Being quick off the mark:  In the past fortnight, on at least five occasions, I have been trying to enter the market on the close of the relevant 5M candles, and simply couldn’t catch the price as it sped away from me in the right direction – all these would have resulted in winning trades (all on DAX and EURJPY).  Something to work on…
  • Basket of Instruments: Have started to shy away from trading NZDUSD (because I suck at trading it!) and instead am being attracted to the UK’s stock index (the FTSE100), because it correlates with the DAX, it has low transaction costs (1 point spread), and it seems to be a slower/steadier instrument – which is somewhat similar to the US 10-Year Treasury Bond which I have been trading in the futures market over the past month and been profitable with.

Anyways, looks like I am heading in the right direction with all my hard work.  (Just like the hard work paid off in my long-distance speed-skating competitions!!).  On the flipside I have to consider the possibility that I just lucked out over the past fortnight – and that the sample size is too small to draw any valid conclusions as to whether I am actually trading better.  Let’s see how the next fortnight goes.


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