System Trading Journal

That's why I think it's better to let the automat trade your systems. You should also have some capital separated ( or 2nd acct ) for discretionary trading only. After a year - compare profits, drawdowns, etc.

 

DDEFINA: GREAT JOURNAL SO FAR. got a question for you.... the channels that you talk about in your system,,,,are they similar to keltner channels??? thanks

 

Hi Larry, I don't use Keltner channels. I probably referred to the price range I try to enter on the first trade as a channel? Good luck today.

 

I'm beginning to think your right. My system has such wide stops and lets large profits ride, so it's very hard to follow mentally. I can do it, just not consistent yet.

 

11/05/2002

This market is very schizophrenic lately, and I’m consistently losing on my first trade, which looks for follow through from the previous day. Unfortunately today my second trade didn’t bail me out, so I quit for the day. I take two losses and call it quits. This keeps my average loss usually well below my average gain in the long run. Trailing stops also help keep my average loss lower than my average gain. I just need to average 50% W/L to come out ahead under this scenario.

Trade 1: Went short at 906.75 hoping for follow through from yesterdays sell down. The market went persistently up through the pivot and tagged my stops for a loss of (6.5 x 4 x 50 = $1,300)

Trade 2: Went Long at 913.25 after flipping on the previous trade, assuming momentum was shifting to the bulls, but was stopped out at a loss of (5.5 x 4 x 50 = $1,100)

A very good day for discipline, but unfortunately held onto the ski rope too long underwater and hit bottom with the system. Can’t complain though at least I followed it 100%.

ACTUAL
Daily gain/(loss) ($2,439.20) (inc. $39.20 commish)
Monthly gain/(loss) ($1,562.20)
Daily ES Points = (12) per contract
Monthly ES Points = (7.125) per contract

SYSTEM
Daily gain/(loss) ($2,439.20) (inc. $39.20 commish)
Monthly gain/(loss) $552
Daily ES Points = (12) per contract
Monthly ES Points = 3.25 per contract

 

Good to see you followed 100%....

when trailing how far back do you trail ( stops)??? and how has this worked out for you???

 

Is this just paper trading to evaluate a system?

"Can’t complain though at least I followed it 100%"... how long can you take that kind of losses? Good luck with your system.

~EC

 

Today I wish it was paper trading, but it's 100% real. The system has proven itself consistently so I'm not too worried. I always think this is the end of the line for the system, but it always comes back. I'll be raiding Grandma's IRA if this keeps up though.

 

My stops are based on S/R so they can get wide sometimes. They average 4-10 points normally. It's almost like a daily swing trading system, but its all intraday. I try to catch the bulk of a good daily move, and need wide stops to do it. I tighten the stops as the trade progresses, and don't normally get hit with a full stop. When I do, I know its going to be a bad day.

 

just to play monday morning quarterback for a moment.. you were initialy looking to go short and then flip and go long at 12.50 right? if your system has u setting stops up to 10 points, i'm curious as to why it got you stopped out today? as your position was hardly in the money at all.