Wednesday, October 7, 2009

Follow-Through.

Autumn (for everybody apart from UF, that's "Fall" *attempt at american accent* to you!) is here. With it comes the alleged volatility that makes successful traders more profitable and, I guess, the less successful even less so...

While going through my the past couple of weeks of data (not including this week), I'm noticing that my winners (always scaling out...all-in to begin with) are becoming smaller relative to the all-in, all-out distance that those winners run for. The average win divided by the average distance gives me 51%, meaning on a, say 6R market move I can expect to typically get 3R from it, using my method of scaling out at various s/r.

This week that's now become 39% (after 19 trades...same relative frequency of trades as prior weeks). I'm also seeing more small wins/losses with a Maximum Favourable Excursion,MAE's cousin, of 200%+...this tells me that the market, at least on the level I'm interacting with it, is choppy.

I'm struggling compared to last week but have made the necessary scaling out adjustments (taking off in thirds/more at the 1st target etc)to right the ship. Currently, I'm up for the week...

Most importantly, I am enjoying the opportunity to practice adapting myself and my strategy to the ever-changing ebbs and flows of the market.

2 comments:

Jules said...

Still greek to me, MM!

I can never see anything in terms of percentages/ratio, and I still suck at keeping records. And this year, I'm not even going to do a review. Last year's review gave me a really bad headache!

Sigh. I'm hopeless.

I like all-in, all-out by the way - it's the only strategy that makes sense to me as far as DAYTRADING is concerned.

Anonymous said...

I'm not really 'anonymous', I'm UF/L&W on someone else's PC...

You really aren't doing the environment any favours, this is another post I'll have to print out on a dead-tree before I can understand/comment :-)