Journal of index futures trading

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Guess I can still post my trading ideas.

Purely technical indicator based back test on trend following system (to 1996).

Was using this to aid in my decision making before, but approach was too short term for account size/contracts I was holding.
 

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Around 15k in the pit now.

Not really going back to the drawing board. Like I have posted, I think I have really good strategies, I just need to go easier on the position sizing.
 
Thanks to my day job, I can have another go at it.

This time, though, I am playing a lot differently...

Just finished reading some material that have added to my perspective on the market. The book(s) basically reinforced what I already knew about the markets, but failed to practice.

This is my 6th start, and unfortunately, each time I have made the same mistake of too much risk exposure. I need to cut down on leverage as it is a double edged sword. It's time to trade less when you have problems sleeping while your position is on overnight. I was also trying to capture very small short term movements which seems now pretty close to gambling and the reason why most people lose.

Have incorporated other aspects rather than pure TA into my trades to get a better picture of the market's tone. I have realized that because this game is all about probabilities and statistics, the more things I can examine to help me determine the proper direction of the market, the better the chance I will have of trading on the correct side.

I will be trading only one contract of the e-mini nasdaq future until I have some sustained success.
 
I have widened my market analysis to 15+ market internals to determine direction. Let's see how it goes.

Currently up on a position around 500 on 1 NQZ10 contract. Looks like I'll be exiting tonight.
 
In 100% cash and account value at 8.8k. Have made 3 profitable trades since I started the account late last month (Started with 8k). Even for my account size, 1 contract of the NQZ has too much leverage, too bad I can't trade less, but it's my only choice as there isn't a "cheaper" index contract.
 
There's no reason for you to be losing $4,000 in one day on a $10k or less account.

On a $10k account, you should be trading with at most, 2 contracts. This means, if you have a stop of at most 4 points on ES (which is necessary sometimes) your risk will be 4% of your account.

4% is pushing it, but thats only considering a rather lenient 4 pnt ES stop.

I see you trade NQ though.

If you can't learn patience, and continue to to tell yourself "im' breaking rules" you'll never make it !
 
Very true, and thanks for reminding me. In this journal I have mentioned that those are 2 of my biggest enemies: patience and leverage.

My trading plan has evolved each step of the way.

When I first started trading, I used little to no TA and didn't pay attention to the news.

After 18k in losses I take into consideration every piece of interpretable TA and scour websites for any economic information.

People that were paying attention to economics/fundamentals and technicals into 2007 would become filthy rich.

I am reading every USEFUL source of information I can find including books.
 
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