Hammering away, slow and methodical
- Thread starter Rol
- Start date
Hi Kohanz, and thanks again for your concern. You were the first to post in my first journal and I thought you would be the last. Because after I was down about 25K on my PANL trade, I thought I would hang up this journal. I held on after last yearâs 4th quarter earnings miss and a few weeks ago, actually closed it out for an $800 gain on the rebound. It just goes to show, you can never let your guard down in the markets. Sometimes, I feel like I havenât progressed at all in my trading. It can be a rollercoaster, as they say.
Iâll post an equity curve for last year up to the present. I am back in the saddle with my automation and have added a long/short strategy trading S&P volatility, which if it performs going forward, may actually become a greater source of profits than the RTM stuff I do. I wonât say up front what the strategy does, but it should complement and provide some hedging protection to what I currently do. My account balance is now 101K after a 3K withdrawal a few days ago. Right now I am 70% long the markets. I am thinking things will be quite until Friday when the deadline arrives for lawmaker to avoid spending cuts to take effect. I am exploring doing some TF after government news events, as we see big trend days arise from unexpected news.
Here is the equity curve for last year up until today. I want to post it as a reminder to never violate my rules again. I will start a new curve on March 1 with a starting balance of 100K. For the % returns to have any meaning to me going forward, I won't make anymore additions or withdrawals. I want this journal to be more about performance data collection, as the numbers are what interests me.
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Total Net Profit $18,765.20
(Per Share) $0.12
Gross Profit $66,399.41
Gross Loss ($47,634.21)
Profit Factor 1.39
Total Number of Trades 2444
Percent Profitable 63.13%
Winning Trades 1543
Losing Trades 901
Avg. Trade Net Profit $7.68
Avg. Winning Trade $43.03
Avg. Losing Trade ($52.87)
Ratio Avg. Win:Avg. Loss 0.81
Expectancy 0.14
Largest Winning Trade $1,158.15
Largest Losing Trade ($977.44)
Max. Consecutive Winning Trades 49
Max. Consecutive Losing Trades 75
Total Shares/Contracts Held 154706
Total Commission $4,546.87
Return on Initial Capital 26.81%
Annual Rate of Return 20.03%
Buy & Hold Return 0.80%
Trading Period 1 Yr, 2 Mths, 6 Dys
Max. Equity Run-up(Daily) $38,607.77
Date of Max. Equity Run-up 2/25/2013 15:09
Max. Drawdown(Daily)
Value ($37,404.96)
Date 11/15/2012 15:00
as % of Initial Capital 53.44%
Max. Trade Drawdown ($3,098.00)
[/b][/size][/color]I used 70K sort of as an average balance as a starting equity for this performance report, although I started this journal with 30K and made contributions along the way. It is remarkable how the buy and hold on the stocks I traded is close to zero in this long term bull we have been in. It almost seems you have to be a really good stock picker based on fundamentals, or just buy and hold an index fund. Again, the horrendous DD is chiefly the result of the PANL trade. I did a fair amount of discretionary trading, but the per share profit actually seems OK. The % profitable is good, but the average losing trade, is bigger than the average winner, which I really think put a dent in net profits.
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Total Net Profit $360.67
(Per Share) $0.21
Gross Profit $602.16
Gross Loss ($241.49)
Profit Factor 2.49
Total Number of Trades 31
Percent Profitable 67.74%
Winning Trades 21
Losing Trades 10
Avg. Trade Net Profit $11.63
Avg. Winning Trade $28.67
Avg. Losing Trade ($24.15)
Ratio Avg. Win:Avg. Loss 1.19
Expectancy 0.48
Largest Winning Trade $100.01
Largest Losing Trade ($65.17)
Max. Consecutive Winning Trades 17
Max. Consecutive Losing Trades 3
Total Shares/Contracts Held 1714
Total Commission $48.81
Return on Initial Capital 0.36%
Annual Rate of Return 16.44%
Buy & Hold Return 0.93%
Trading Period 8 Dys
Max. Equity Run-up(Daily) $535.85
Date of Max. Equity Run-up 3/7/2013 15:00
Max. Drawdown(Daily)
Value ($143.67)
Date 3/4/2013 15:00
as % of Initial Capital 0.14%
Max. Trade Drawdown ($108.49)
[/b][/size][/color]Pretty light trading this week as the market had few pull backs. Long exposure now is 12%.
I will be including updated profit distribution of trades. So far, in line with expectations. I want to see twice the gains in the 0 to 2% range as apposed to 0 to -2%, which is where the majority of trades occur. In addition, an overall slight right shift in the bell curve should be observed.
Rol, you mentioned about you maybe too concentrate on some of the sector doing autotrading in one of your post. Did you find that your p/l for individual stock are too moving in the same direction given that most stocks move in the general direction in trading your previous system in your Rol trading journal previously? Also you are long only previously if the market is down most stocks are down and this defeat your intention of diversify into many stocks