A Jedi Trader's ES Journal

Quote from wrbtrader:

Hi,

Only profitable traders should be using a "daily profit goal".

In contrast, traders that are not consistently profitable should be using a "follow the trading plan goal" via essentially rating their ability to follow the trading plan if there's a discretionary element in their trading (you mentioned you had a discretionary element in your trading).

Also, trading the Emini ES futures is one of the toughest games in town and the goal you've described is greatly dependent upon volatility. Simply, if volatility isn't there (currently it's not in comparison to one month ago)...you will not come close to achieving your goal.

* Why did you chose to trade the Emini ES in comparison to any other futures trading instrument ???

* You mentioned you've been trading Emini ES for the past 2 years...were you profitable the past 2 years ???

Your answers will tell me if you should be trading it. Also, my point about the volatility is that you need to first determine how sensitive your method is to changes in volatility via measuring the correlation of those 2 year trading results with the VIX or VXX.

You can then begin to determine a more realistic daily profit goal assuming you were profitable overall in those 2 years of Emini ES futures.

Mark
More...

Hi Mark, thanks for stopping by.

I agree trading in general is tough and trading the ES is even tougher.

I agree with you, following a daily profit goal was premature but it is on my list of "things to do":D I am essentially doing what you suggest as far as grading my adherence to trading plan and efficiency of execution. The daily profit goal is all but forgotten.

I have been trading futures partime for several years but have been focused on the ES for the last two years. I was not consistently profitable during the two previous years but feel that i have gathered adequate knowledge to become consistently profitable and im now focused on consistent execution rather than gathering knowledge/sim trading. Knowledge isnt my issue discipline is my issue. Aligning myself with the market in order to profit.

As to whether I SHOULD be trading the ES. I wouldnt advise anyone to trade the ES with 5K or even more. For the majority trading is hazardous to your wealth!

I selected it purely as a day trading vehicle. I have traded many of the futures markets and I'm aware that several markets could be traded on a intraday basis and may have characteristics that make it easier to trade.

I am attracted to the liquidity of the ES and the potential for scalability in possible professional money management. I didnt want to trade say YM or NQ and have to transition to/adapt my system to trade the ES in order to trade larger size. I fully realize that that is not a problem I currently have.

as far as volatilty being important to my success, I agree that its important but I have several types of trades and IF im accurate in determining what type of day its looking like can select an approach that can be profitable or repair previous losses. In any case either I can spot a potential opportunity or i cannot or it doesnt present itself then I dont trade. My system can work on globex levels of volume so im not too worried about volatility being present. trading 1 lot or a 10 lot or even 100 lot makes no difference in the ES, my targets wouldnt change or need any adaptation to scale up, but again that not my concern currently.

Thanks for the suggestion to check results against the VIX
 
didn't have a sharply forcused mindset today.

was up 200 dollars and gave it all back and some more

was -350 and was able to reduce the loss to about 150 but failed to take off at that level desiring to not only reduce loss but be in profit. Made error of moving stop out during beginning of market sell off expecting shortterm support to hold. Market obviously didn't agree and I could see that I had a need to be correct rather than doing what I had known to do to rectify the situation and keep plugging along. A bit of revenge trading vs need to be correct. Made a decision to raise my daily loss limit and that is almost always a mistake. If I'm needing to do that then that means I'm not in rhythm with the market and have insufficient room to repair my daily losses. Got into the big loss situation by increasing positions to early problably because I was already in profit +200.

Date
04/07/11
-49 ticks
-$672.28 net loss
14 contracts traded
$59.78 commish (9.76% of gross loss)
21.43% percent profitable trades
-3.5 ticks per contract average

Grade F-
essentially adding to a losing day generating further losses
lack of focus
revenge trade
needing to be correct (I don't feel this emotion when I'm trading it seems to be triggered in a loosing phase and the larger the loss to greater the intensity)
needing to be in profit (I don't feel this emotion when I'm trading it seems to be triggered in a loosing phase and the larger the loss to greater the intensity)
trading too much due to problems I caused

The majority of these issues have to do with poor premarket preparation. I need to assess daily if I feel I'm mentally and physically ready to trade, and be honest with myself regardless of what the answer is

http://screencast.com/t/otECPhErA
 
4/11/2011
Graded myself B overall today.
traded a mixture of 8-15 tick shortterm trends as well as several 3 tic scalps
+39 ticks
$431.99 net profit
13 contracts traded
$55.51 commish paid(12.85%) of gross profit
61.54% of trades taken were profitable
average 3.0 ticks per contract

http://screencast.com/t/tJXSJoiw
 
5/2/2011
had been on vacation for a week and sick for about a week but I'm back......:)
Graded myself B overall today.
traded a mixture of 8-15 tick shortterm trends as well as several 3 tic scalps
+92 ticks
$1,021.90 net profit
30 contracts traded
$128.10 commish paid(11.14%) of gross profit
average 3.1 ticks per contract

http://screencast.com/t/fxfw0Zfnb
 
5/03/2011
Had a very good day overall but took 2 trades that we outside my trading plan and just broke even today.

gross +15 tics
34 round turns, too many for this day and performance
47.62% profitable trades, loosers were much larger than winners

before doing the off plan trades, I was up $575, end of day net was $42.32

commissions were 77.43% of gross profit.

http://screencast.com/t/kkoVVlmE14
 
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