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Monthly Objective Recap:
Month 1 (May) - Complete framework programming and build basic plan for automating opening orders. Observe P and L for possible tweaking for month 2.
Month 2 (June) - Increase win/loss ratio while decreasing risk/exposure. Automate blocking for news/earnings while still observing their role on probabilities. Devise a money management plan and apply it in month 3.
Month 3 (July) - Apply a money management plan and adjust risk based on volatility and probability.
Month 3 Results:
Without Money Management
* W/L Ratio: 2.79
* Avg Gain Per Trade: $213.34
* Avg Loss Per Trade: $-512.96
* Std Dev of Daily Win/Loss: $2242.33
* Max Day Win: $3780.00
* Max Day Loss: $-4950.00
* Total P/L: $6626.00
With Money Management
* W/L Ratio: 2.87
* Avg Gain Per Trade: $90.32
* Avg Loss Per Trade: $-180.58
* Std Dev of Daily Win/Loss: $756.87
* Max Day Win: $1605.00
* Max Day Loss: $-1223.00
* Total P/L: $6056.00
Conclusion:
With money management the variance of daily profits to losses was lower and it kept me out of some bad trades due to there risk being outside my parameters, hence a slightly better W/L ratio. Although it lowered my profit and loss per day considerably over no money management, my monthly total profit and loss only suffered ~$-600.00 and the draw downs were far less severe.
Whats next:
I would like to see a lower variance between my trade profit and trade loss, so i am going to try and work on a plan to adjust it. With the current ratio at about 1:2 ($win:$loss) i would like to see it down to at least 1:1.5 or ideally >1:1 while still keeping my trade w/l ratio in check.
see you next month,
~g
Monthly Objective Recap:
Month 1 (May) - Complete framework programming and build basic plan for automating opening orders. Observe P and L for possible tweaking for month 2.
Month 2 (June) - Increase win/loss ratio while decreasing risk/exposure. Automate blocking for news/earnings while still observing their role on probabilities. Devise a money management plan and apply it in month 3.
Month 3 (July) - Apply a money management plan and adjust risk based on volatility and probability.
Month 3 Results:
Without Money Management
* W/L Ratio: 2.79
* Avg Gain Per Trade: $213.34
* Avg Loss Per Trade: $-512.96
* Std Dev of Daily Win/Loss: $2242.33
* Max Day Win: $3780.00
* Max Day Loss: $-4950.00
* Total P/L: $6626.00
With Money Management
* W/L Ratio: 2.87
* Avg Gain Per Trade: $90.32
* Avg Loss Per Trade: $-180.58
* Std Dev of Daily Win/Loss: $756.87
* Max Day Win: $1605.00
* Max Day Loss: $-1223.00
* Total P/L: $6056.00
Conclusion:
With money management the variance of daily profits to losses was lower and it kept me out of some bad trades due to there risk being outside my parameters, hence a slightly better W/L ratio. Although it lowered my profit and loss per day considerably over no money management, my monthly total profit and loss only suffered ~$-600.00 and the draw downs were far less severe.
Whats next:
I would like to see a lower variance between my trade profit and trade loss, so i am going to try and work on a plan to adjust it. With the current ratio at about 1:2 ($win:$loss) i would like to see it down to at least 1:1.5 or ideally >1:1 while still keeping my trade w/l ratio in check.
see you next month,
~g