Too much size, you stayed cemented to the Long side with only 1 - 2 Short positions late in the game as if you had to admit it was a Down Trend Day.
You have to backtest that type of trade management strategy and position size management to determine if statistically if your winners on trend days will out weigh your losers on trend days like today when you're fighting the trend (counter-trend trading).
If your backtest results with the simulator results shows that trade management strategy with position size management strategy do in fact work...you can then view today as part of the statistical expectations.
Thus, you do not need to worry about today's (-3150) losing trading day.
Also, the stats will psychologically help you to remain in control until the winning days show up on trend days while using the same trade management strategy with position size management strategy...scaling into trades on a trend day.
- Do you add to winning positions in the direction of the trend day ?
The first strange thing in your
recording of the live stream...you started talking about your profits, losses...how much money you made and loss as if you're giving a quick history of your trading instead of focusing solely on the current trading day...
today.
Psychologically, you're brainwashing yourself in the beggining of your trading session. Yet, I prefer to view it as setting yourself up to not be able to recognize its a trend day with each and every position add...cementing the view that the market will retrace back upwards to some target that you've set.
Also, that brainwashing with those losses accumulating will set you up to ignore your Short signals. If you're really using VWAP...I know you got several Short signals but you must figure out this weekend why you ignore those Short signals and continue pushing those Long positions when the big downtrend day became so very obvious.
The other biggest problem is your
position size management. You're adding to Long positions when and bullish price action is unable to take out the prior (most recent) reaction high.
Simply, its a downtrend.
The next strange thing I notice...you intentionally muted the audio. When I see someone say they're trading via a certain method (you said you're using VWAP) but they then start placing trades in areas not associated with the trade method and then they mute the audio along with the fact there's no VWAP on the chart.
Psychologically, you're unable to manage that loss and it was only (-655.00)
@ 1:14:10 in your video just before you strangely increased your position size to 2 contracts on the next Long position.
It briefly worked...you trimmed down your losses to (-155.00) but there's no audio to know what you're thinking now. You're now telling yourself that it was OK to increase your position size on a Long position on an obvious downtrend day.
You then go Long again with 2 contracts and manage to get positive but only briefly around 1:38:52. Yet, the stop for those specific 2 contracts was @ 7905 while your Long entry @ 7936.50
The issue wasn't that it was a -31.50 stop/loss protection. That's a huge stop to be using on a downtrend day. This is a huge problem because you said you're using a risk / reward ratio of 1:1...something you said earlier in the video when you were discussing your brief history. Regardless, the -31.50 stop would imply your profit target was +31.50
I call these types of ratio as
fixed risk:reward. They do
not adjust to the current market condition of the price action you're trading. For example, if the market was only able to give you 5 - 10 points on those Long positions...that fixed risk:reward of -31.50:+31.50 will be very problematic.
- Have you backtested how you're using position size management ?
Why were you consistently trying Long positions as if you did not get any Short signals...what gave you that bullish bias...was it via technical reason, expectation or something in the market context that you're not showing in your live streaming ?
Yet, your intentional muting of the audio when you were only down a few hundred dollars in the beginning and you're not showing your other windows (e.g. position windows) in CQG trade execution platform is odd too.
Surely you must have been thinking about something when you were adding to a losing trade position. Its as if your home environment has too much distractions and you do not want anyone to hear what's really going on in your trading environment (e.g. getting up from the desk and leaving the trade position not being monitored, talking on the phone with relatives).
Something else, its as if you're trading from a
single monitor and you're trying to make the viewers of your live stream happy by putting up a chart (maximze) on the screen instead of you (the trader) utilizing the rest of your broker trade execution platform because those other windows (not shown) will HELP you to not get fixated (hypnotize) on the chart when you have open trade positions.
This is only an issue if you're
not using automation in your trading.
Going forward @ 3:15:45 in your video...you were only down (-945.00$) but you did something strange again involving your position size management...you went added another 1 contract to an open 2 contract Long position...you now have 3 contracts.
The stop gets hit and you're now sitting with a (-1905.00) losing trading day.
You stop for a long time...still no audio and no views of your other windows in your broker trade execution platform. I figure at this point...you're like deer at night in front of headlights coming straight at you...you're unable to see the car/truck/semi behind those headlights.
If the downtrend was not obvious to you earlier...it should have been obvious to you at this point.
Next, you go Long again but this time with 3 contracts and still
no audio about why you're increasing your position size, no info about the downtrend that you keep live streaming. Yet, you manage to get back to a loss of (-945.00).
This is where the mind games kick in. Profitable trades can trick you into believing you're doing something right when in reality your training yourself to continue with the bad trading habits.
You nailed a nice retracement back upwards on 3 contracts and should have called it quits for the day on that winning trade to then rethink over the weekend about what happen and why you're not tuned into the obvious trend or maybe you knew it was a downtrend but was afraid for some reason to go Long until near the end when you increased your size again to 5 contracts from an earlier losing 4 contract Long position that had an add...losing 5 contract Long position in which you finally (too late) do a position reversal into a 5 contract Short position as if you now realize its a downtrend or you gave up to say that it
must be a downtrend.
Seriously, if you're going to live stream your trading...don't mute your audio in the heat of the battle, show those other monitors involving your position window and VWAP indicator. The latter is very important so that you'll hold yourself accountable because it really looks like your trades have absolutely nothing to do with VWAP especially when VWAP is not on your NQ chart and your position size management seems random (emotionally based).
wrbtrader
