Trading Log - Forward Testing with $30K combine

[Tlahuicole]

Day 11:

June 21st 2017:

Trade 29:

Result: Loss.
Remark: Instead of entering a sell limit order I entered a buy limit order. After I realized the mistake, instead of closing the trade I reversed the trade initiating short entry at an unfavorable price.

Trade 30:

Result: Loss.
Remark: Even though I knew that I had entered at unfavorable price, I did not close the trade and kept the stop loss at original position which turned out to be a costly mistake after the trade went in the other direction.

 

[Tlahuicole]

Day 12:

June 23rd 2017:

Trade 31:

Result: Loss.
Remark: None.

Trade 32:

Result: Loss.
Remark: I moved SL to breakeven due to fear of increasing loss, after the stop was hit trade moved in my direction.

Trade 33:

Result: Loss.
Remark: Impulse trade taken due to emotional inconsistency when I wanted to have a profitable trade badly, hence, the trade was not entered during the proper setup formation.

 

[Tlahuicole]

Day 13:

June 26th 2017:

Trade 34:

Result: Loss.
Remark: None.

Trade 35:

Result: Profit.
Remark: None.

Trade 36:

Result: Profit.
Remark: None.

 

[Tlahuicole]

Day 14:

June 27th 2017:

Trade 37:

Result: Loss.
Remark: None.

Trade 38:

Result: Breakeven.
Remark: Timeout.

 

[Tlahuicole]

Day 15:

June 28th 2017:

Trade 39:

Result: Loss.
Remark: None.

 

[Tlahuicole]

Day 16:

June 29th 2017:

Trade 40:

Result: Loss.
Remark: None.

Trade 41:

Result: Loss.
Remark: None.

Trade 42:

Result: Profit.
Remark: None.

 

[Tlahuicole]

Day 17:

June 30th 2017:

Trade 43:

Result: Profit.
Remark: None.

Trade 44:

Result: Loss.
Remark: None.

Trade 45:

Result: Loss.
Remark: None.

 

[Tlahuicole]

This combine has expired, ending balance is $30007 from starting balance of $30000. Even though I have not attained the target, I have broke even. I am analyzing this set of trades to find out some new insights and will level up my game accordingly. I had a losing streak in between of 8 trades and that was upsetting, but I was able to survive this drawdown by following the rules to the book. Happy Learning!

 

[Tlahuicole]

I have analyzed my previous trades. I am making a checkpoint here as I am adding a few restrictions to my existing strategy.

Current strategy is to take trades in the direction of short term trend on sign of strength in the trend direction. Below are the enhancements being added to the existing strategy. If the enhancements do not work, I can come back to this check point and start trading again without affecting the original methodology.

Things to avoid as part of enhancement:
1) Avoid taking the trade when it occurs after break out failure.
2) Avoid taking long distance pivot breaks as trade entry rather than recent pivots in direction of short term trend.
3) Avoid committing mistakes during entry.

Things to do as part of enhancement:
Once the trade is entered with SL 10 ticks away from entry price and PT 20 ticks away from entry price, on each pivot formed in the direction of the trade, trail the SL. Even though we might close a few big winners too soon, we will be able to reduce losses by following this process and in case where we close big winners too soon, we might get another entry.

I will be practicing these enhancements for a few days before taking up the next challenge. Train Hard but Fight Smart!
There is no glory in practice, but without practice, there is no glory - anonymous.

 

[augubhai]

1. Backtests will save you a lot of time (and maybe money too). From your comments, it appears to me that your strategy is backtestable. Go for it. Save time. You can do a 100 backtests in the time that you complete 1 forward test.

2. Don't stick with a strategy unless it is thoroughly working for you. There are thousands of strategies out there. So, there's no point in tweaking (curve fitting?) a strategy that is just breakeven. Try out/backtest different strategies, but stick with only those that you think match your personality and can be sustained by you.

3. Focus a lot on money management. Analyze how the strategy will scale up in the future. The whole point of this business to be make your account big.

4. You had mentioned about your relative who only traded the day open. How is he doing? Have you tested his strategy?