Universal Trend Trading

Discussion in 'Journals' started by luckyputanski, Aug 4, 2011.

  1. Bought audusd @ 1.0530

    Account value 524k
     
    #11     Aug 23, 2011
  2. Sold sp500 @ 1217.90, long term trend change according to trend indicator.
    Account value 510k
     
    #12     Aug 31, 2011
  3. drm7

    drm7

    Interesting journal. Usually I see daytraders and stat arb guys.

    How do you size your positions? Risk % per trade? Looks like you are risking about 2% per trade.

    What platform did you use to backtest your system?
     
    #13     Aug 31, 2011
  4. At the moment I risk 1.5 % per trade, some trades slightly more, based on where stop loss is right now.
    I have a degree in IT, so I wrote my own backtesting engine.
     
    #14     Sep 1, 2011
  5. Gbpusd stopped out @ 1.6178 with loss -1650
    Account value 532k
     
    #15     Sep 2, 2011
  6. Closed eurusd @ 1.4185 with profit +2418.
    Account value 537k
     
    #16     Sep 2, 2011
  7. Account value 489k
    Big 10% drop in account value in one day - strangely no positions stopped out. Seems like almost every market moved against me. No panic, though. Such days are less likely than other way round - every market moving with me. And then I'll have 10% equity increase in one day.
     
    #17     Sep 6, 2011
  8. Sold wheat @ 750.88
    Account Value 474k
     
    #18     Sep 7, 2011
  9. Closed usdchf with a loss -34918
    Closed eurgbp with a loss -387
    Account value 478k
    Big loss on usdchf, that's because stop loss was far away from the market at the time of entry. My choices were:
    1. Enter small position
    2. Do not enter at all
    3. Enter normal position

    Since it's statistically likely the trend will continue I chose option 3. Big loss on this one, but I have a bigger profit on gold.
     
    #19     Sep 8, 2011
  10. drm7

    drm7

    Have you considered using volatility-based position sizing? It may have helped in this situation, while maintaining your "edge."

    e.g., define "n" units of risk as a 14 day average true range. Use some multiplier (i've seen anywhere from 2 to 5) and base your ~1.5% risk on that range.

    Just a thought.
     
    #20     Sep 8, 2011