2011: Rebuilding My Battered Account

Status
Not open for further replies.
Weekly Update for week 32/50 ended 8/19/2011


Ugly as it goes. Down 34K (13.6%).

No single big loser, but altogether a steep loss for the week. The worst came on Thursday with the market sell-off. My automation bought so many "oversold" stocks that kept plunging, ending the day with a loss of 20K. Still brings back the question of how much exposure to let my automation have in the same market direction before being overleveraged: I will fully answer that and incorporate that rule this week-end.



Code: 
Opening Balance:                	251,426
Net loss for the week 		         34,238
-------------------------------------------------
Net Balance:                   		217,188

Number of Trades	            	  23
Number of Profitable Trades    	    	  10


Since Inception of Thread   01/8/2011 - 8/19/2011

Opening Balance:                   	335,899
Net loss (Less Margin Interest)		118,711 (Down 35%)
------------------------------------------------
Net Balance				217,188

Number of Trades	           	 658
Number of Profitable Trades        	 347

attachment.php
 
Quote from neke:

Weekly Update for week 32/50 ended 8/19/2011


Ugly as it goes. Down 34K (13.6%).

No single big loser, but altogether a steep loss for the week. The worst came on Thursday with the market sell-off. My automation bought so many "oversold" stocks that kept plunging, ending the day with a loss of 20K. Still brings back the question of how much exposure to let my automation have in the same market direction before being overleveraged: I will fully answer that and incorporate that rule this week-end.



Code: 
Opening Balance:                	251,426
Net loss for the week 		         34,238
-------------------------------------------------
Net Balance:                   		217,188

Number of Trades	            	  23
Number of Profitable Trades    	    	  10


Since Inception of Thread   01/8/2011 - 8/19/2011

Opening Balance:                   	335,899
Net loss (Less Margin Interest)		118,711 (Down 35%)
------------------------------------------------
Net Balance				217,188

Number of Trades	           	 658
Number of Profitable Trades        	 347

attachment.php
More...

I calculate a 13.7% loss on QLD from the open of this week, so this is similar. I feel like momentum indicators have their place versus straight dip buying.
 
Quote from neke:


Ugly as it goes. Down 34K (13.6%).
More...


I had a losing week too.

If we cant make money in this type of market, we should be worried..
:(

Neke you need to play good defence this week .. defend the 200K point in your equity.. cut back size if you have to .. try not to fall below 200K.
 
Quote from neke:

Weekly Update for week 32/50 ended 8/19/2011


Ugly as it goes. Down 34K (13.6%).

No single big loser, but altogether a steep loss for the week. The worst came on Thursday with the market sell-off. My automation bought so many "oversold" stocks that kept plunging, ending the day with a loss of 20K. Still brings back the question of how much exposure to let my automation have in the same market direction before being overleveraged: I will fully answer that and incorporate that rule this week-end.



Code: 
Opening Balance:                	251,426
Net loss for the week 		         34,238
-------------------------------------------------
Net Balance:                   		217,188

Number of Trades	            	  23
Number of Profitable Trades    	    	  10


Since Inception of Thread   01/8/2011 - 8/19/2011

Opening Balance:                   	335,899
Net loss (Less Margin Interest)		118,711 (Down 35%)
------------------------------------------------
Net Balance				217,188

Number of Trades	           	 658
Number of Profitable Trades        	 347

attachment.php
More...

Bro you gotta incorporate some kind of market filter in that shit. If there was an "edge to stock trading", it would be that stocks tend to move together intraday.

You probably should have avoided longs when the market is down 400+ points. Otherwise, how are you going to keep from buying during a market crash? Let it settle down first before trying to catch knives. I guarantee you the markets will be open the next day :)
 
Quote from monti1a:

Bro you gotta incorporate some kind of market filter in that shit. If there was an "edge to stock trading", it would be that stocks tend to move together intraday.

You probably should have avoided longs when the market is down 400+ points. Otherwise, how are you going to keep from buying during a market crash? Let it settle down first before trying to catch knives. I guarantee you the markets will be open the next day :)
More...

That is just fucking crap. Didn't you read what he typed. He typed he bought stocks because they looked absolutely oversold. They don't crash even more after that. But unfortunately they did. Your advise is plain STUPID and ain't going to make lots of $$$
 
Neke, I've been reading your results and I am COMPLETELY rooting for you but take your system and throw it the closet for a few months. It's not working. You can't tweak your system for irrational 500 pt daily swings can you?

Based on the fundies the entire market is oversold. However with the prospects of no to negative growth the E in pe needs to be revisted

Besides , nothing is oversold in a chaotic market from a technical or fundamental perspective.

In addition, No offense... your risk management sucks. For every week you make 3 or 6k your losing 10 or 20k.

Are you hedging at all? Strangles, straddles, spreads or legging in or are you just buying 10k contracts at a time and hoping for a good outcome? Quit trading (guessing) at open. Unless you like to pay higher preimums for your options. Let the market lead and you follow instead of you trying to lead the market.

My god man. Slowdown. Quit tring to hit a homerun on every trade to recoupe your losses. If you can't monitor your trades every second all day long in this market environment at least reduce the size of your trades.

To me, this market seems relatively easy to trade with these wide and obvious swings. I've pulled 200% just in the last 5 weeks trading options on the beast BIDU . But.. thats me.

Good luck man!
 
Quote from traderslair:

......They don't crash even more after that. But unfortunately they did. Your advise is plain STUPID and ain't going to make lots of $$$
More...

You obviously have an IQ just a tad bit over 30 for that super emotional foolish remark. Irregardless, I don't feed trolls so save yourself a response.
 
Anyone with half a brain can discern that Neke's ' system' is based on reversion to whatever he determines to be the mean. Which is the reason he uses such terms as overbought and oversold (words that should not be in a short term trader's vocabulary). He makes good money when the range is wide and the market makes a huge reversal and his max adverse excursion isn't too big that it doesn't reach his max pain on the trade and forces him to close for a big loss. See his post on the gain he had on Wednesday or Thursday of this past week. But on a pure trend day he gets killed as he averages in with increasing size as momentum continues to go against him and his focus shifts from making money to breaking even and then eventually he begins to pray to simply mitigate the loss. Amazingly despite the suspect trade rationale it is the lack of proper risk management that is the main culprit behind these huge losses as he has a 50% win rate. Even more amazing is how much money he'd have made if he'd only do the opposite of the trades he's been making without even changing his risk management. So the real question then becomes why is Neke so far on the wrong side of the trade when he is wrong? His biggest losses are probably 3-5Xs bigger than his max gain which is totally unsustainable. You still have plenty of money with which to trade Neke...value what you have as you seek a strategy that will allow you to accumulate more. Wishing you much success.
 
Status
Not open for further replies.
Back
Top