Saturday, April 4, 2015

End Of Continuous Combine 1- What I've Learned.

Erroneous last day figure...never breached the daily loss limit but haven't contested it as the end result is the same.

Notice the bounce off of the max. draw down limit...~ -$2500.

The solution is clear. Run the winning situation and circumnavigate the fear of short-term loss.

I generally do a good job of cutting the losing days short but need to improve on allowing the winning ones to get big enough to compensate. This is likely caused by a fear of giving back a short-term victory...the cost of which is long-term success...

No matter how good the strategy, everyone who has larger winning trades/days than their losing ones will, to some degree or another, experience that feeling of giving back profits which they could have booked if they weren't looking (and holding out) for larger gains. Trusting an edge which regularly fails you in the short-term is hard for most people to get their heads around.

So, I've reset the combine and this is now my 3rd attempt since June 2014. My goal is to divorce myself from the idea of an individual trade's result (since this is what causes the emotional variance) and train myself to look at aggregate results. The wider the view the better...I'll start with aiming to get through the hour I trade without focusing on each trade and thinking of the session itself as one, big "trade".

Action based on the present, results based on a collection of present moments.


Scott said...

Ive make my BankrobberTrades and FearandGreed blogs public again.
I will maybe update and revamp them as a lot of the links probably dont work any more after these few years....

James Edwards-Marche said...

THANK YOU Scott! Perfect timing (as you can see)... your material is exactly what I needed to review.

So grateful you've done this for those who have asked :).

Unknown said...

Now I am used to take help from Back then there was a period of time when you were posting about trading index futures, have you given up on that?

Unknown said...

I try to make changes in my trading pattern by some time depending on intraday SGX signals on the other, I read some charts and do my own analysis.