Losing days

Millionaire said:
...I will trade more contracts but use closer stops when the market is low vol. Like at the moment the VIX is very low and the daily ranges are muted. When things liven up i will reduce number of lots traded but increase stop distance. I position size to a fixed risk % of my account so risk and and position size also change as account size changes.
More...

Have you consider that a "low VIX" equals poorer trading conditions ?

Thus, when the VIX is low you should be reducing (not increasing) your position size and when the VIX increases to a specific level...you then increase your position size back to normal.
 
wrbtrader said:
Have you consider that a "low VIX" equals poorer trading conditions ?

Thus, when the VIX is low you should be reducing (not increasing) your position size and when the VIX increases to a specific level...you then increase your position size back to normal.
More...

Yes i have considered and tested this. And it has proven to reduce losses a little in the past data, however it is adding another filter variable to the trading system. And you can keep on adding more and more such filter variables as you come across them. And you end up with a trading system that is curve fit to a lot of different filters.
I try to keep everything as simple as possible. Not too many input variables into the system.
 
It will be interesting to see what your losing trading days looks like with their specific date of trading and with there exact position size.

I think there's a correlation there that's being overlooked because you've removed the "date" and "average position size" info for each specific day you've traded.
 
Actually, my stops increase on low volatility, less volume can be pushed around easier and hit tight stops, whereas more volatility-at some point my systems shut down.

How often you get stopped out on "noise"?
 
Everybody has losing days - when you use a good risk/trade mgmt strategy your winners should be significantly larger (3x or more) than your losing trades.

Novice traders tend to focus on trying to reduce the number of losing trades. Pro traders care little about the ratio of winners/losers but are fanatical about having their winning profits at multiple several times above their losers.
 
Last edited:
Today was the first losing day since the opening journal post (May 15th),

-4920 GBP (-6400 USD)

That makes 20 losing days for the year so far, so approximately another 28 to go

I will disclose one more metric, the daily profit factor per year is about 1.7 on average.
So if all the losing days in one year add up to 100K we would expect 170K in daily profits. Netting 70K for the year.

This is an average profit factor, so some years the profit factor will be less than 1.7 and some years more.
1.7 is an ok profit factor, ideally the profit factor would be 2 or above, but 1.7 is all the market is giving me on this current system (which is a day trading system)

Losing days can be hard going, although i was totally relaxed today.

===========================================================

-5530
-3130
-756
-4379
-265
-2732
-4187

-2058
-4974
-103

-2807
-2766
-3243
-4107
-3778

-5209

-3513

-8699
-4668

-4920

=============================================================

Current losing streak length is 1 day.
 
Last edited:
You must log in or register to reply here.
Back
Top