This week’s “nuts & bolts” trading review

Quiet Friday afternoon ahead of Monday’s President Day in the US.  Following the ‘popularity’ of last week “nuts+bolts” post, I figure I do a repeat of it this week.

In the post below I take a look at my performance for the trades (independent of results achieved), the results themselves, an analysis of performance by trade entry time, a list of lessons learned, as well as screen shots of some of the key trades.

Happy reading (plus some brand new street art at the bottom of this post)

Trade Performance Points

This week I commenced rating my performance on executed trades – tried to complete this right after the completion of each trade.  [Note this is not the same as determining whether a setup is valid or not, and it’s also different from my trader mental/physical assessment.] I achieved the following average ranking for each of the following (the maximum score is always 2.00):

  • Self-Awareness (of physical and mental state)           1.58
  • Bigger picture assessment (using Voigt)                       2.00
  • Assessing time of week/day/news context                    1.95
  • Considering long/short/flat perspectives                      1.35
  • Selecting good quality setup                                              1.48
  • Entering at good price level                                               1.78
  • Assessing potential targets, stops, re-entry points  1.55
  • Managing trade according to rules & plans                   1.33
  • Total Avg Score per Trade (max = 16)                             13.00

Trading Results for this week

I had fewer trades this week, 20 in total.  This is partly a reflection of me being more selective and self-aware.   There were 5 winners (+4.33R), 8 scratch trades (-0.63R) and 7 losers (-2.64R).  The average reward-to-risk ratio was 2.3.

Half of the trades were on the indices (the DAX and the Dow), the rest on Cable, USDJPY and EURUSD.

Performance by time of entry

This data collection continues to show an interesting trend.  In a nutshell, it shows that I have been losing money on trades entered before 12pm (London time), and am making money on trades entered after 12 pm.  The sample size for this is now up to 120 trades. Notice also the seemingly strong performance of trades entered at the time of the Wall Street Open at 2.30 pm London time (thanks to fellow trader B for pointing that out).

trade-performance-by-entry-time

Key lessons learned this week

  • Trading is very tough – losing trades can occur even if I have done everything right, and price behaves (almost) as expected – sometimes a couple of pips can make the difference between a winning and a losing trade.
  • Being self-aware of my feelings and thoughts is making me more selective and slow in entering trades, which is really starting to work in my favor.  Listening to slow music most of the time is also helping in this regard.
  • On the whole I am getting better at holding onto my trades rather than closing them early, though i still royally screwed that up at least 2-3 times this week
  • Using the market structure approach explained by Voigt in Markttechnik is really helping me to assess the trend and bigger picture in conjunction with my use of the exponential moving averages (EMAs).  [That said I am only 1/4 of the way through the book]

Screenshots of key trades

By ‘key trades’ I am referring to trades that really illustrated a point, that helped me learn something.

 

455

 

463

 

471

 

466

 

454

 

Before I go, I thought i share the latest piece of street art to appear on my street this week – catch you all next week:

16805289_10154185312221218_442520349_o

 

This entry was posted in Psychology, Reversals Strategy, Trend-Following Strategy. Bookmark the permalink.

12 Responses to This week’s “nuts & bolts” trading review

  1. Hey mate,

    If your intraday strategy focuses on high risk reward outcomes (>1.5RR, your avg 2.3) then, the higher the volatility, the better you are likely to do. In other words, the hours of the day with the largest 60M range will correlate to how well you trade.

    Your own data supports this, the hours of 2.30PM-4.30PM UK time (US Open) are the highest volatility and volume of the day for some of the biggest markets.

    Just something to think about, I don’t have the whole picture,

    Great article again, and great street art.

    – David.

    Liked by 1 person

  2. scratch trades are losing trades so at best your method is 25% successful. Forget the ‘psychology’,find something that works. An idiot once said’winners don’t need psychology’. Sorry but this is self harm. I’ve been trading for 17 years and tried it all. My library is extensive, I’ve read all the stuff, but the one adage that comes back time and again is from Van Tharp: “We trade our BELIEFS about the market” It takes a while to understand that. Seems to me you’d be better taking the opposite side of your trades based on the results. I’m am a great supporter of all who try to trade,and I hate the endless sniping on sites like Trade2win and Elite Trader. There is little out there-which is why I have been searching for a decade to find trading buddies- very very few people are honest enough with themselves to trade. There is nothing else like it.

    Like

    • Hi david. Thanks for your comment and all the comments you have made to date. It seems a bit to me that you are starting to repeat yourself in your posts – in that you recommend van Tharp, that you have been trading 17 years, that you love to sell options, that it takes forever to become a profitable trader and that I should consider giving up on my journey. So all in all it’s not exactly very constructive or encouraging. Would it be ok to ask you to either offer new constructive suggestions or to stop making similar comments over and over? As you know it’s hard enough as it is, so I don’t really need someone telling me to give up each week without giving me new reasons to do so. What do you think?

      Like

  3. Honestly? Stop trying to do something that is unlikely to succeed and take a step back. Try looking at options strategies if you like-it’s what I like, but it took me a long time to arrive at that. Most people shy away.
    What you are doing is not constructive-I’ve been down that road longer than you can imagine,full time from 07:00 am until 21:00. So: to be constructive: Find something that suits you, and ONLY forward test. Be patient. Understand that most money managers rely on continual churn and are not good at trading-this is the biggest BS industry there is. Find a real, and I mean REAL successful trader and PAY for mentoring-it will be money well spent as you will find out if YOU have what it takes. I paid for a mentor and I failed-it was the best £1,500 I have spent. I found out cannot day trade. I honestly wish you well, I’m not clever or wildly successful- I’ve lost money in February, but it saddens me to see your valiant efforts week after week. Wish I had a magic wand.

    Like

    • There you go – now that’s much better. Thanks!

      Like

    • No please don’t pay any money to systems sellers/vendors/chat rooms/mentors.
      Nearly all these charlatans are people who make their living from selling rather than trading.
      They are all smooth talkers who know what people want to hear and it is hard to tell which are the legit ones.

      I only ever recall 1 FX day trader i met who i believed was making money day trading over many years. And he wasn’t selling anything to anyone, he was spending his time trading.

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  4. precisely- ONLY epay a mentor who is proven successful-if you can find one.Most of the traders you meet are utter BS artists with 2p accounts

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    • “proven successful”

      You said you paid £1500 for mentorship, how did the mentor prove to you they were successful.

      Did he have a fund with public performance data, or three years of audited accounts, or did he show you real trading statement to be prove his success?

      I have yet to come across a mentor in the UK who has proven they are successful.
      They all make claims of decades of experience, but provide very little proof of success.
      And we all know experience and success in trading are not the same thing.

      Like

  5. point was I found out that despite having an excellent system for ftse futures I was not capable of day trading, and I kept missing trades. My mentor is still in business,and is a moderately successful trader. Sandy Jadeja is one I’d recommend. His father mentored him. My guy was chosen by IG to mentor the ‘Bets and the City ‘ girl https://www.amazon.co.uk/Bets-City-Nicolls-spread-betting/dp/1905641060. And she was no good either. By the way it’s the worst book I’ve ever read.
    Trading is about honesty there is no place to hide-it’s not like music where you can fluff a few notes and get away with it.(That was my previous career). I would not wish to destroy someone’s world but I bet if I sat next to a trader it would be a huge ‘own up’ for them, as they’d have to explain why they took the trade/failed etc. THAT is the acid test. I have spoken at length with James Day,who coaches but is not a successful trader- I know exactly where I am in my trading path,after 17 years!
    I wish all traders every success but it pains me to see people waste years with gut wrenching misery, only to find out they are not suited to that STYLE of trading. I’ve met hundreds of wannabes and I know they are hiding from the reality. The average spreadbet account lasts 6 months. They lose about £6k. I’m sure IG started in a shed with an IBM 286 computer,and now have huge staff,stock market lising etc. Americans are so lucky in that there is a lot available to them-we are hobbled by the trash that pretend to look after our financial interests,but even with sites like Tasty Trade, they get loads of callers who have stuffed up simple options trades. I KNOW trading, though I have no industry insights. By the way-high nett worth clients of big banks- 96% of them lose bundles trying to trade, about 2% make a chunk of change-and these are proven successful people.
    I have no axe to grind other than to see others winning-our website is about education,as there is ****all in the UK of any merit. My own latest trade is on the website:
    http://optionsinvesting.co.uk/trade-18-whats-locker/

    Like

    • You recommend Sandy Jadeja, how do you know he is in your words a REAL proven successful trader? Have you seen a verified track record of his trading?

      I think you shouldn’t say other types of trading are bad just because they didnt work for you. If you can prove that absolutely no one else makes money that way (over the long run) then you might have a point.
      You have 17 years experience, where you say you tried different methods.
      But because you failed to be profitable in certain areas of trading you are obviously, by definition, not an expert in those areas.

      And likewise just because you are a profitable options trader, this doesn’t mean everyone else who tries to trade options will be profitable doing the same.

      You used the term ‘gut wrenching misery’, i dont think George is at that stage yet.

      Like

  6. You say: “But because you failed to be profitable in certain areas of trading you are obviously, by definition, not an expert in those areas.”
    I think 3 years of intense effort makes me an expert in what I can and cannot trade. Sorry if I am annoying, but I genuinely want to see people succeed. It’s too easy to say there are snake oil sales people and so on-but I’m the only person being positive in pointing out the reality! If you cannot handle the reality, don’t trade. This is not a cheap hobby.

    Like

  7. Pingback: London vs New York sessions: Trading Performance differences | Trick or Trade

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