Taking 410K to 4million by Year End 2010

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Weekly Update for week 6/50 ended 02/20/2010

D-E-P-R-E-S-S-I-N-G week, down 57K (20%).

No words to explain the disaster that happened. Began on Tuesday, with what was supposed to be 100 contracts of X FEB 50 PUT worth 16K that I initiated via a Trade-Trigger. Unfortunately, there were double executions (was in the process of modifying the trigger when it fired - didn't know and the replacement caused another execution): When I realized that, I was coming dangerously close to the max loss of 6K. Instead of closing it out, decided to double down with 100 X FEB 55 PUT (worth 98K) in a bid to break-even. That was not to be. Instead the stock kept moving against me, I exceeded the max loss, and nothing fired (realised that my program was unable to process the new option symbology format), and I lacked the will to close the losses. Finally closed it when it was unbearable, losing 17K in one, 18K in the other, and the stock position was closed out at the max loss of 6K. That defined the rest of the week as I couldn't get anything right. No gain worth mentioning.

There will be no manual trade entry anymore from now till end of March, as I seek to prevent this draw-down from becoming a blow-up. Only entries initiated by my automation, or triggers entered before 9:30am will be allowed. I shall program the system to automatically close out any manual entry initiated between 9:30 amd and 4:00pm. I shouldn't even login to my account except between 3:45pm and 4:00pm, just to check no unintended open position is being left overnight by the automation.

Looking forward to better times. This bleeding has to stop!

Code: 
Opening Balance:               	    	286,952
Net loss for the week 		         56,661
------------------------------------------------
Net Balance:                   		230,291

Number of Trades	            	 18
Number of Profitable Trades    	    	  5


Since Inception of Thread   01/10/2010 - 02/20/2010

Opening Balance:                   	410,000
Net loss(Less Margin Interest)		179,709 (Down 44%)
------------------------------------------------
Net Balance				230,291

Number of Trades	           	301
Number of Profitable Trades        	139

Top/Bottom Discretionary Trades for the week

TICKER			ENTRY DATE/TIME		EXIT DATE/TIME		QTY	PURCHASE AMT	SOLD AMT	GAIN/LOSS	TYPE
	
X			2010-02-16-09-45-46	2010-02-16-10-40-20	5000	255496		249223		-6290		SHORT
QHBFEB202010120.0PUT	2010-02-19-09-38-05	2010-02-19-11-04-09	5000	22915		15250		-7744		FSLR PUT
XFEB20201055.0PUT	2010-02-16-10-03-06	2010-02-16-13-18-50	20000	98000		80950		-17325		X FEB 55 PUT
XFEB20201050.0PUT	2010-02-16-09-35-36	2010-02-16-13-20-57	20000	31368		13400		-18249		X FEB 50 PUT

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when u have a f up like that and you dont want to take the loss, you were obviously wrong at the time and probably stil wrong if you are of the same beleif moments and - 1000's later, just sprd it off for now, it cant get any bigger than the sprd, and you can leg out of it later , you have stopped the damage, you didnt have to take a loss yet , and it doesn't f up the other stuff you are tending to. As far as locking yourself out of your own system,if yesterdays after close action took place at 10 a.m., what would you do, if you are locked out?
 
Hi Neke,

I am sorry to hear about your loss for this week. Please don't be depressed, because money doesn't define who you are. Just think that the $57K you loss went into a lesson. I believe as long as you remember the lesson, you will be able to earn a lot more in the future.

BTW: Is your daily max loss still $6K? Are you going to reduce it to 2% of your account? Also, what do you think about sitting out for awhile and rethink about the strategy and the expectancy?


PA
 
Quote from Pension_Admin:

Hi Neke,

I am sorry to hear about your loss for this week. Please don't be depressed, because money doesn't define who you are. Just think that the $57K you loss went into a lesson. I believe as long as you remember the lesson, you will be able to earn a lot more in the future.

BTW: Is your daily max loss still $6K? Are you going to reduce it to 2% of your account? Also, what do you think about sitting out for awhile and rethink about the strategy and the expectancy?


PA
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I've been down this road before. i hope he gets a handle on himself and the gambling before he gives up the other $230k.
 
Had an accident similar in that I bought 500 calls instead of 5. But I closed out 350 to keep the position from causing a major problem. I think once you realize you are in a mistaken trade for example double the number of contracts or buying when you want to sell, the best thing to do is just close the position and take the loss rather than then trying fix it after the fact. My calls cost only 15 cents and I got out of them at 10 cents.
 
TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAIN/LOSS TYPE

X 2010-02-16-09-45-46 2010-02-16-10-40-20 5000 255496 249223 -6290 SHORT
QHBFEB202010120.0PUT 2010-02-19-09-38-05 2010-02-19-11-04-09 5000 22915 15250 -7744 FSLR PUT
XFEB20201055.0PUT 2010-02-16-10-03-06 2010-02-16-13-18-50 20000 98000 80950 -17325 X FEB 55 PUT
XFEB20201050.0PUT 2010-02-16-09-35-36 2010-02-16-13-20-57 20000 31368

I've found you either trade on the open, or after the first hour of expectational bullshit where the mm's decide where to move the market to and fuck over a bunch of people.

Entry times are a bit of an issue for me here prior to 10 am in most cases. I don't know if anyone else finds this particular period as bullshitly volatile as I do, but I'm open for debate.
 
Oh Neke!

Sorry about the loss but this is a great reminder about how to handle a screwed up trade so in a way I guess I'm grateful for you re-enforcing a steadfast rule I have:

Always, always, always immediately close a botched trade. ALWAYS!!!! Anyone whose ever traded has had a similar mistake happen. Hell, it probably happens to me 5-6 times every year and it's already happened once this year. (meant to short 5K AAPL and did 25K by mistake). But you have to close those trades immediately without exception and without regard to where you are pnl wise. No exceptions.

If I were you I'd take a week off, but good luck either way.
 
The funny thing is if you work for a hedge fund, and screw up, you can call you buds at the Nasdaq to bust the trade for you. I am sure if the trade worked out, they would not call.


Quote from Deadwood:

Oh Neke!

Sorry about the loss but this is a great reminder about how to handle a screwed up trade so in a way I guess I'm grateful for you re-enforcing a steadfast rule I have:

Always, always, always immediately close a botched trade. ALWAYS!!!! Anyone whose ever traded has had a similar mistake happen. Hell, it probably happens to me 5-6 times every year and it's already happened once this year. (meant to short 5K AAPL and did 25K by mistake). But you have to close those trades immediately without exception and without regard to where you are pnl wise. No exceptions.

If I were you I'd take a week off, but good luck either way.
More...
 
good decision not to continue revenge trading and take a break to cool off emotions and let the system do its thing. As long as you have bullets left, you can fight another day.

you have my respect for what you are doing, very few people here are willing to post a real journal like you do. but there are plenty posers willing to criticize.

good luck moving forward into the year of the tiger, ride its back!
 
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