I am skipping the usual weekly stats for the time being. I did not follow my system very well during this market correction, and so the results are not very reflective of true system performance. The worst thing for me to do at this point for myself, as well as others, would be to shut down this thread at this point.
I am including two charts to encourage myself some as I attempt to regroup. I am still positive for the year by 1k, and am up over 12k since system implementation. The broader market is negative on the year. Current equity is 60k, so I am presently in a 26% DD from my equity high of $81300.
My system would have exited about half of my positions on 8-3, where you can see the uptick on the YTD chart. Not wanting to take my losses, I chose to override the exits on close as well as the next day stop losses. I also was gambling with day trading BP, hoping for an intraday reversal that never materialized. These two plan violations probably have resulted in my current losses being close to 2X what they should be.
I also realize I was taking on too much risk by allowing too many entries per day, as well as the overall maximum system positions. I think a good barometer to use would be if the losses ever seem too great to take relative to your account size, then you are taking on too much risk. It only takes a misstep on one day to short circuit your game plan.
I have already implemented changes to reduce risk going forward. I do not think I qualify as "blowing up" at this point. Blowing up to me would be more like a 50-70% DD. I will likely hold my current positions longer as now would seem like a good entry point on many of them. When you have a portfolio, there is a greater likelihood that some of them will recover. I will continue with regular "fund" contributions, as I would whether the market was rising or falling.
I did some interesting backtesting recently involving stocks above and below their 200 DMA. I have done this in the past, but was only focusing on the ending net equity for comparison. The backtesting showed a greater ending net equity when including stocks both above and below their 200 DMA, but the curve is much smoother when only entering when a stock is above its 200 DMA. Anyway, I will post some stats later on my findings.
I am including two charts to encourage myself some as I attempt to regroup. I am still positive for the year by 1k, and am up over 12k since system implementation. The broader market is negative on the year. Current equity is 60k, so I am presently in a 26% DD from my equity high of $81300.
My system would have exited about half of my positions on 8-3, where you can see the uptick on the YTD chart. Not wanting to take my losses, I chose to override the exits on close as well as the next day stop losses. I also was gambling with day trading BP, hoping for an intraday reversal that never materialized. These two plan violations probably have resulted in my current losses being close to 2X what they should be.
I also realize I was taking on too much risk by allowing too many entries per day, as well as the overall maximum system positions. I think a good barometer to use would be if the losses ever seem too great to take relative to your account size, then you are taking on too much risk. It only takes a misstep on one day to short circuit your game plan.
I have already implemented changes to reduce risk going forward. I do not think I qualify as "blowing up" at this point. Blowing up to me would be more like a 50-70% DD. I will likely hold my current positions longer as now would seem like a good entry point on many of them. When you have a portfolio, there is a greater likelihood that some of them will recover. I will continue with regular "fund" contributions, as I would whether the market was rising or falling.
I did some interesting backtesting recently involving stocks above and below their 200 DMA. I have done this in the past, but was only focusing on the ending net equity for comparison. The backtesting showed a greater ending net equity when including stocks both above and below their 200 DMA, but the curve is much smoother when only entering when a stock is above its 200 DMA. Anyway, I will post some stats later on my findings.
