Wednesday, August 17, 2016

Running P&L In R

Keeping what I said regarding showing vs being firmly in mind, I've decided to share my running P&L with the trading blogosphere!

I've converted the chart from $$$ to risk units - this allows me to share the journey without the potential pressure of sharing the actual dollar gains/losses. Having said that, the usual caveat applies - if it messes with my ability to trade properly, it'll be gone quicker than cake at a Weight Watchers meeting!!

Reasons for doing this:

1)  During the years of following trading blogs, I only know of two that have consistently posted their P&L without conveniently skipping out periods of time (where anything could have happened!). This one  does so in points, while this one does so with $$$ and accompanying charts. I want to add an element of credibility to my posts so that people can verify how well the principles, spoken about in this blog, translate into real-world results.

2)  It's taken me a long time to begin to understand the nature of probability, variance etc. and how we need to fully understand our expectancy, the journey it can take us on, and adjust our expectations to be able to accept the journey without destroying the long-term edge. This curve will serve as a reminder for me when things look grim and as a reference for any future posts.

NOTE!: Friday 23rd September's result is not accurate as much bigger risks were taken to achieve the ~ -3R result in order to try to get above $0 in order to satisfy an FTP rule. I've normalized the result in order to not skew the curve but the result in actual risk taken would have been closer to zero.


Trin said...

LMAO @ if it messes with my ability to trade properly, it'll be gone quicker than cake at a Weight Watchers meeting!!

Good post. I commend you on being transparent with your trading. At the end if the day, a trader has to be accountable to them selfs... and spouse lol.

James Edwards-Marche said...

Thanks! I agree...if we lie to ourselves, we haven't got a chance of making it out of the market with a positive result.

Trin said...


send me your email, you can do it privately over at Trin Café. Been two weeks since you last posted, I'm actively following your trading journey.

Hope all is going well,


James Edwards-Marche said...

Hey Trin,

No :). As I mentioned in previous posts regarding showing vs being, blogging etc. I'm not going to get into anything that jeopardizes my journey. I'm not on any posting schedule whatsoever so nobody should be expecting any posts or updates- they come spontaneously if/whenever I'm feeling a need to share.

So posts could be everyday or once a year (or never!).

You can follow whatever I decide to share here, on twitter (@market_monkey) and on YouTube under my name. Hope all is going well for you to and that you understand my position better.


Trin said...

Lol, not sure what the no is to? I wouldn't want you to do anything that could jeopardize your mindset or trading performance. As for what you share or how often you post, I completely understand, you have to do what's right for you.

All is good on my end, I have a lot to be thankful for.

Take care,

James Edwards-Marche said...

" not sure what the no is to?"

"send me your email, you can do it privately over at Trin Café" :)