28/1 – Wrap-up for Week#4

Oh my God! What a week!

I did 30 trades this week.  Again, my overall result was a small profit.  However I am constantly finding areas where I know I can trade better, where I know there are things I need to learn, things I can im
prove and get better skills in.  Some of these are technical, and some are psychological.  The purpose of Mondays and Fridays is to work on these points, and to spend Tue-Thu trading.  I arrived in the office between 6:15 and 6:45 on each of the three trading days.  I didn’t leave until 5pm or later.

I am noticing more “how the market speaks”.  The correlation across instruments – this week there has been a lot of correlation between Oil, the equities (DAX and S&P) and USDJPY.  Each session there has been either a risk-on or risk-off approach.  It’s been very interesting to observe.

Good points this week:

  • A couple of times I entered trades when I should not have – either because of inadequate preparations on coming back after lunch/break, or because of semi-valid setups.  When this happened, I closed the trades pretty quickly – that’s great discipline.
  • Documentation – even though i racked up 30 “K5” trades, each one of them is documented complete with a screen shot of the chart.
  • Risk/Money Management – also applied rather rigorously.  There were also fewer instances where I risked less on a trade then I was meant.  In the past I have done this very often.  It’s not a good practice.
  • Refinements are being applied – specifically with trade management adjustment (I have not detailed these refinements anywhere on the blog).
  • Focus and Hard Work – during the trading sessions, I have achieved high levels of focus and concentration.
  • Confidence – On average, my self-confidence is higher – that’s a good thing.

And here are the results for the week:

The stats for this week were 10 winners – 10 scratches – 10 losers, in other words “10-10-10”.    The net result was a win of 1.45R (or £290).  The average amount risked per trade was £154 (£146 last week).  As you can see I traded all kinds of instruments throughout the week.

Week 4

Summary statistics for the month of January

Here’s a calculation of win rate, average reward:risk ratio:

January results II

For a look at the effectiveness of the K5 strategy and an approximation of the strategy’s edge, have a look at my blog post about risk management here  (you need to look in the second half of that post).

 

And here’s a breakdown of return by instrument

January results

Good going George.  Keep up the good work!!  You will get there.  You will become a consistently profitable trader!

 

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