Successful Trading and Compounding
- Thread starter gmst
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Estimate 20 days per calendar month, 100 trading days, reported average daily profit percent is 15%, and average daily loss is 14%:
1.15^(100*0.52)*0.86^(100*0.48)-1=1.02852-1=2.85% profit by those metrics.
ROI is at -19%. These numbers don't add up, so unless he was trading the entire time something's fishy here.
If the point was to understate performance by beginning a max drawdown of 82% followed by a rise just to demonstrate no knowledge of profitability before trading, well done. Good job.
1.15^(100*0.52)*0.86^(100*0.48)-1=1.02852-1=2.85% profit by those metrics.
ROI is at -19%. These numbers don't add up, so unless he was trading the entire time something's fishy here.
If the point was to understate performance by beginning a max drawdown of 82% followed by a rise just to demonstrate no knowledge of profitability before trading, well done. Good job.
Let me give you a tip the real turn in my trading was focus on 1 pair i do trade now 3 instruments but added 2 in the last years. But i know 1 thing they are also highly correlated. Like most is on the usd those 3 i have now are all usd based so i am aware on that but they move sometimes different on geopolitical issues or fear.
The 3 i trade are
-Eur/usd.
-Crude oil.
-Gold.
But i started with the eu watched that pair for hours and hours.
Then after a longtime and became profitable with it i added oil and i observed its behaviour same with gold.
Now i trade them also.
But let me say you this i havent readed your whole thread but what i get out of it you trade many instruments probally different strategies different timeframes what you doing? i am asking are you a propfirm with 30 traders running on your own as 1 trader.
Serious my friend if i can give you 1 good advice stick to 1 pair 1% a day can be done sticking to 1 pair sometimes you have a loser then stop trading discipline yourself the loser will be 1% the next day you maybe catch a 3% win. It is all greed and fear in what i readed so far to high expectations etc serious the most profitable traders i know from my career so far in this business are the specialist and they specialized in 1 instrument.
The 3 i trade are
-Eur/usd.
-Crude oil.
-Gold.
But i started with the eu watched that pair for hours and hours.
Then after a longtime and became profitable with it i added oil and i observed its behaviour same with gold.
Now i trade them also.
But let me say you this i havent readed your whole thread but what i get out of it you trade many instruments probally different strategies different timeframes what you doing? i am asking are you a propfirm with 30 traders running on your own as 1 trader.
Serious my friend if i can give you 1 good advice stick to 1 pair 1% a day can be done sticking to 1 pair sometimes you have a loser then stop trading discipline yourself the loser will be 1% the next day you maybe catch a 3% win. It is all greed and fear in what i readed so far to high expectations etc serious the most profitable traders i know from my career so far in this business are the specialist and they specialized in 1 instrument.
greetings
for something it is best to view and enjoy at a distance.
there is really no reason to get too worked up over this right? LOL
let's enjoy whatever, whenever and.... however we wish.... right?
I have written about it earlier in the journal. It depends on whether you are looking at average daily 'percentage' win/loss or average daily 'dollar' win/loss. Note that I had my losses early on when my equity was 6000-7000 USD, and I have been having my wins when my equity has been 2000-4000 USD.
See example below:
Number of win days is 60% and average win % is much larger than average loss %, still there is a loss of 150$. The reason is wins are on a smaller equity base, whereas losses are on a larger equity base. On the other hand, average daily 'dollar' win is less than average daily 'dollar' loss, and if you use these numbers, your calculations will make more sense to you.
I believe percentage values should be used in the analysis, along with total PL till date. It presents the most complete picture.
Compounding can be used with very good results.
The problem is to keep track on the size and to calculate this during trading is not easy.
VisualRMM Interactive have a built in calculation on compounding.
Have a look at some of their videos.
Click here to watch the compounding Video
The problem is to keep track on the size and to calculate this during trading is not easy.
VisualRMM Interactive have a built in calculation on compounding.
Have a look at some of their videos.
Click here to watch the compounding Video
Update for week 26 ending Jan 20, 2012 :
Posting after a long time.
-2400$ for the week.
Lost on all 5 days - happened for the first time in 26 weeks. Goes to show how bad things can happen even after sustained decent performance. Bad trading for last 2-3 weeks, even in FX - most of the times have been reversing positions and have been going in the market with large leverage.
This Week's Stats:
Withdrawal: 0$
1. Week PL: -2400$
2. Start Equity: 4.7k
3. End Equity: 2.4k
4. Maximum equity run-up: 4.7k
5. Max Win day as % of that day's start equity: 0%
6. Max Loss day as % of that day's start equity: -26%
Below stats are from Journal start day:
Withdrawal: 1100$
1. Total PL: -3600$
2. PF: 0.9
3. RoI: -49%
4. Max. DD: 82%
5. Current DD: 53%
6. # of winning days 50%, # of losing days 50%
7. Av. win day: 15%
8. Av. Loss day: -14%
Posting after a long time.
-2400$ for the week.
Lost on all 5 days - happened for the first time in 26 weeks. Goes to show how bad things can happen even after sustained decent performance. Bad trading for last 2-3 weeks, even in FX - most of the times have been reversing positions and have been going in the market with large leverage.
This Week's Stats:
Withdrawal: 0$
1. Week PL: -2400$
2. Start Equity: 4.7k
3. End Equity: 2.4k
4. Maximum equity run-up: 4.7k
5. Max Win day as % of that day's start equity: 0%
6. Max Loss day as % of that day's start equity: -26%
Below stats are from Journal start day:
Withdrawal: 1100$
1. Total PL: -3600$
2. PF: 0.9
3. RoI: -49%
4. Max. DD: 82%
5. Current DD: 53%
6. # of winning days 50%, # of losing days 50%
7. Av. win day: 15%
8. Av. Loss day: -14%
gmst, do you ever post any of your trades? What time frame are you concentrating on most?....daily, intraday-15min -1 hr etc) ......?
And what instuments?.... FX and/or.....?
And what instuments?.... FX and/or.....?
Hi, I posted on ES journal regularly for like 3 months - but most of my trades there were losers. So please don't follow me there - or maybe you can trade against me
I lost around 10k or so in 3 months.For FX trades, where I make money, scalps for 4-8 pips are done in 1-10 minutes. Longer term trades targeting 20-100 pips hold period of few hours to couple of days. Extremely rare to keep any trade beyond 2 days - e.g. even if I think euro is going to go down for next 5 days, I will rather sell and cover, again sell (a bit higher hopefully) and cover, maybe now go long for few pips cover and then again sell and so on.
Edit: My charts are 5 min chart, 30 min chart and a daily chart for Euro and only 30min and daily for AUD, for yen hourly and daily. So depending upon currency charts resolution differ. Absolutely against looking at 1 minute chart. For ES, 5 min (95% of use) and 1 min for just looking at volume extremes (3% use) and daily (2% use)
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