Manoj's Trading Diary

[manojborle]

DETERMINE YOUR CURRENT TRADING VITAL STATISTICS:

Win ratio
This is the percent of winning trades to losing trades. Win ratio = Number of winning trades ÷ Total number of trades

Payoff ratio
This is the ratio that tells you how many rupees you earn for every rupee you lose. Payoff ratio = Average winning trade ÷ Average losing trade.

Commission ratio
This is the percent of your profits that go toward paying commission to your broker. When you are over-trading, the percentage of your profits that goes toward paying commission will go up.
Commission ratio = Total commission paid ÷ Total Gross profit

Largest winning trade

Largest losing trade

Average winning trade

Average losing trade

Largest number of consecutive losses

Average number of consecutive losses

Largest trading account percent of draw-down

Average trading account percent of draw-down

 

[manojborle]

Your Risk Profile


1. What do you feel is the risk level of the market you trade or invest in? (Your answer is based on your opinion.)
a. Low risk market, bonds, not using leverage, etc. (5 points)
b. Medium risk market, stocks, etc. (10 points)
c. High risk market, futures, using leverage, etc. (15 points)

2. What was the total percent of return on your active trading account over the last 12 months? (If you do not have 12 months of data, take your average percent per month and multiply it by 12)
a. Up 50 percent or more over last 12 months (5 points)
b. Up 10 to 50 percent over last 12 months (10 points)
c. Lost money, or was up under 10 percent over last 12 months (15 points)

3. What is your average win ratio?
a. 50 to 100 percent winning trades (5 points)
b. 35 to 50 percent winning trades (10 points)
c. 0 to 35 percent winning trades (15 points)

4. What do you feel is your personal risk tolerance? (Your answer is based on your opinion.)
a. Prefer low-risk ventures (5 points)
b. OK with medium-risk ventures (10 points)
c. Enjoy high-risk ventures (15 points)

5. What is your trading experience level?
a. Consistently profitable over 12-month period (5 points)
b. Breaking even over 12-month period (10 points)
c. No experience or losing consistently (15 points)

6. What is your average payoff ratio?
a. Better than 3 to 1 (5 points)
b. Between 2 to 1 and 3 to 1 (10 points)
c. Worse than 2 to 1 (15 points)

There is no good score or bad score; this is just a way to determine what will work best for your money management plan.

Risk Profile Score:
30–50 point score: You are in a position to test taking on more risk, and it might be important to push the envelope on occasion and increase percent of capital at risk. If you have been risking 2 percent, you may try risking 3 percent or more if you are consistently profitable. If you do have a period of draw-down, immediately reduce your risk.
50–70 point score: You are right on target and have an average risk profile. Steady as she goes.
70–90 point score: You are in a position to take on less risk. Test reducing your percentage of capital at risk to see if it improves your bottom line. For example, if you are trading with 2 percent capital at risk, reduce to 1.5 percent. Watch out for over-trading. Reduce your risk percentage quickly the minute you experience draw-down.

 

[manojborle]

Your Discipline Profile

1. Are you able to be punctual?
a. Always on time (5 points)
b. Sometimes on time (10 points)
c. Never on time (15 points)

2. What is your diet like?
a. Healthy and controlled (5 points)
b. Don’t really think about it (10 points)
c. Unhealthy and uncontrolled (15 points)

3. Are you good with your record keeping and with keeping your checkbook balanced?
a. Always great at keeping records and analysis (5 points)
b. Usually do record keeping (10 points)
c. Sometimes do record keeping (15 points)

4. Do you have substantial clutter in your office?
a. Never have clutter (5 points)
b. Sometimes have clutter (10 points)
c. Always have clutter (15 points)

5. Do you pay your bills and expenses on time?
a. Always (5 points)
b. Usually (10 points)
c. Sometimes (15 points)

6. Have you got a regular exercise routine that you follow?
a. Yes, I have a regular routine that I always follow (5 points)
b. Yes, I have a regular routine that I sometimes follow (10 points)
c. No, I have no routine (15 points)

Your score will give you an idea of how to set up your rules so that you take into account your discipline strengths or weaknesses.

Discipline Profile Score:
30–50 point score: You are highly disciplined and will have the ability to easily follow your trading rules and maintain good record keeping. You are more of a left-brain thinker and will probably have some difficulty in thinking out of the box and coming up with creative solutions to trading challenges.
50–70 point score: You are right on target and have an average discipline profile. You are more of a whole-brain thinker. Steady as she goes.
70–90 point score: You generally struggle with being disciplined. You will need to really focus on keeping good records and analyzing your results. You are more of a right-brain thinker and will probably find it easier to come up with creative solutions to your trading challenges.

 

[manojborle]

WHEN DO YOU GO ON HOLIDAY?

You may want to determine rules for deciding when to take a break from your trading and go on holiday for a bit.

In One Day:
x number of losing trades in a row
x amount of loss
Any other rule ?

In One Week:
x number of losing trades in a row
x amount of loss
Any other rule ?

In One Month:
x% equity loss in your trading account
Losing set of x number of trades (where after completing x number of consecutive trades you post a loss for that period in your trading account)
Any other rule ?

Suggestions are welcome here

 

[manojborle]

WHEN DO YOU TAKE THE MONEY AND RUN?

For some traders (like me ), it is best to take profit off the table when they reach a profit target. On occasion, traders will feel almost out of control when they have a large profit at stake. There can be a certain amount of anxiety with success, and if you feel that you have a tendency to self-sabotage, you may want to create a holiday strategy for when you are doing well. Here are some ideas:

In One Day:
x amount
x% of capital
any other idea ?


In One Week:
x amount
x% of capital
any other idea ?


With these holiday strategies, as you become more comfortable with a certain profit level, be sure to up the ante and increase your profit targets. Push yourself to grow and stretch your comfort zone.

 

[manojborle]

Short NF @ 10200, SL 10210

 

[manojborle]

10 point loss

 

[manojborle]

Short BNF 24230, SL 24272

 

[manojborle]

Loss of 42 points, done for the day

 

[manojborle]

Short BNF 24220, SL 24260