Nov & Dec Trading Update

Things have been very busy over the past couple of months and I have not had a lot of time to allocate to my trading activities.  A different work project has taken up most of my time in Nov & Dec.  Time for a quick recap of trading work done the past two months.  And a quick performance summary, since 2018 has just come to an end.

2018 Performance

Opened and closed just shy of 250 trades.  In essence, traded two different strategies – one trend-following, using code-generated signals (written by yours truly!).  The other a reversals strategy, trying to replicate the trades taken by another trader.

Funnily enough, even though in 2018 I spent far less time on trading than in any of the preceding 4-5 years, I was actually in the black for the year.

Looking back, I guess the main contributors were:

  1. Trading with a lot of discipline – this has become quite second nature.
  2. Well-defined setups and trade management rules – no loose canons!
  3. Careful risk management.  Towards the end of the year when performance started to drop, I reduced the position sizing and thus protected the gains made earlier in the year.

2018 equity curve

 

November and December

  • During December I took 20+ FX trades, for which I have used computer code to help me identify potential setups quickly and efficiently.  I have used the code to run on the 2H timeframe for a larger number of instruments in FX, indices and commodities.  The 2H timeframe was a good balance between getting a good number of setups and the number of times I had to check the charts during the day.   The code is generating many false signals.  The code is still largely an extension of the work I began with TraderDi in late 2017.
  • At the end of the month, I documented and reviewing the trades, to see what insights I could possibly gain – this comes back to this idea that Lance Beggs always raves on about – do 20 trades, review, adjust and repeat.
  • Wrote some further code to backtest some of the potential insights. Ran backtests for 15 FX pairs over a two-year period and analysed the impact of adjusting the setup components on the basis of those potential insights.  I didn’t find anything earth-shattering.
  • Still keeping an eye on the Smartforexlearning trading room, but decided not to enter into any new trades over the Christmas fortnight.
  • The most exciting event was getting the news that my broker had asked the FCA (the UK’s financial regulator) to suspend its operations and freeze all clfixiient monies. Here’s an article with the glorious details: FIXI Plc shuts down, Client Monies frozen by FCA.  Presumably, if you hang around long enough, everything will eventually happen in trading.
    • Now need to get myself organized to sort out another trading account so that I can trade the Felix strategy with the proper position sizing.

 

 

On the whole I am slowly spending less and less time on trading – it has certainly taken a back seat to other work projects – however it is still lurking there in the background.

A professional systematic trader shares his views…

Recently, one of the systematic traders from where the hedge fund whose office I was at during 2017, has kindly provided some material for a separate blog post – this will be published soon – keep your eyes peeled!

Till then,  happy trading!

 

 

This entry was posted in Financial Markets 101, Psychology, Risk & Money Management, Trend-Following Strategy. Bookmark the permalink.

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