As a live futures trader for more than 2 years I have come to understand my biggest demon, my kryptonite....large down days. Something takes control of my mind and goes crazy. When I'm on a winning streak, I'm taking small chunks out of the market on a regular basis. My profitable day winning streaks often run greater than 10 days and then I wipe it all out with one big down day. I know better, and I know that all I have to do is limit my down day to about 2 winning days and I'll be back to even in a few days or so. I am technically good enough to be consistently profitable but I have to rid this demon to have any chance. Any tips or suggestions on what you do to accept a small loss and shut down for the day?
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Kryptonite
- Thread starter onemoreshot
- Start date
Make sure your fundamental strategy isn't short convexity.
If it is: be aware of it and that the large drawdowns will be a fact of life.
If it is: be aware of it and that the large drawdowns will be a fact of life.
Make sure your fundamental strategy isn't short convexity.
I'm not sure what short convexity means, please elaborate.
I'm not sure what short convexity means, please elaborate.
Where your payout profile includes massive blowups with small gains: generally the probability of having the small gains is high; and the massive blowups, low.
Where your payout profile includes massive blowups with small gains: generally the probability of having the small gains is high; and the massive blowups, low.
Most days my discretionary approach is small gains per contract but I don't have to take big draw down risk to get it. Most days I pull out 1-2 points per contract in the ES. But on that 4th or 7th or 13th day when I'm trading poorly, I'll lose 10 or 20 points and revenge trade. I need to set a firm rule, X points down, no more trades until the next day, I just have a hard time following that rule. I took a break from trading live for about 6 months and traded sim and never had an issue with "taking" a sim loss, for me at least, sim trading may be reflective of the market, but doesn't account for trading demons.
I've thought about these things:
1. Posting my live results every day for accountability.
2. Taping my stop rules to my monitor
3. Getting a kitchen timer and not being allow to get back into the market after a losing trade for X minutes etc.
1. Posting my live results every day for accountability.
2. Taping my stop rules to my monitor
3. Getting a kitchen timer and not being allow to get back into the market after a losing trade for X minutes etc.
I've thought about these things:
1. Posting my live results every day for accountability.
2. Taping my stop rules to my monitor
3. Getting a kitchen timer and not being allow to get back into the market after a losing trade for X minutes etc.
How about automating your exits?
How about automating your exits?
That's a good idea...Sometimes on my blowups, I widen my stop but what often happens is too many trades trying to pick tops and bottoms and increasing my size on in a "hope" to get back to even.
Sounds like an easy fix to my problem is to simply "stop doing that stupid stuff" trust me I know better. I've only had one blowup since returning to live trading again, I'm hoping it's my last.
Agree either other writer, automate your trading...completely!