Losing day journal

Discussion in 'Journals' started by southall, Oct 29, 2011.

  1. southall

    southall

    I day trade the Futures markets for a living.

    Every day I have a daily loss larger than 1% of equity I will add a journal entry here.
    I will also log my thoughts and feelings related to these losses.

    Based on back testing the approximate losing statistics for my trading are as follows:

    Probability of a daily loss >10% of total equity: once every 5 years.
    Probability of a daily loss >5%: once every six months.
    Probability of a daily loss >2%: once every two weeks.
    Probability of a daily loss >1%: once every week.

    These are of course average probabilities, in reality losses often come in streaks.
    For example I could get three >2% losing days in one week and then not get another >2% losing day again for another two months.