Subscribe Feed (RSS)AEOS, not
March 1st, 2006 by eyal | Filed under Day Trading. |
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Was stalking AEOS for a while, unfortunately no dummy spot to enter so no trade. The only positive thing is that I’m sticking to my plan which has so far resulted in positive P&L for January and Feb.
This is from my trade log spreadsheet. The flat line around 60 or so is due to my vacation in Singapore.
Hi Eyal, this is going to sound like a dumb question but i have been meaning to ask you for a while. What do you mean when you say that you had a +1R gain or a loss? It would help me understand better when I read your posts. Thanks.
Hey Alibawla, not a dumb question at all. I probably should explain a bit more how I trade. Something to write about over the weekend :)
Basically I pre-determine for myself based on my account size, risk appetite and maturity of the system I’m trading what is the $ amount I will risk on each trade. So if I had $100,000 in my account and used 1% as risk for each trade then that would be $1000 per trade. If the trade closed for a full -1R then I’ve lost $1000 and if I made +2.5R then I’ve made $2,500 on the trade. This R amount also determines my position size, if my stop is say 50c away from my entry then $1000 / 0.50 = 2,000 shares position.
The benefit is that this allows you to evaluate trades, performance etc. more accurately focusing on getting things right rather than the $ amount made/lost.
My aim is to make trades with at least 3R profit and limit my losses to no more than -1R per trade. At the moment my average $ win/lose ratio is 2.5:1 so I’m not quite there yet. I still make mistakes and miss out on opportunities (today is an example of that).
Btw, I like your picks in Stocktickr, that’s some cool trades you have there.
Thanks for visiting.
Thanks Eyal. Appreciate the response.
Why not plot an average (say 10 trade average) line over the top of the chart. That will tell you if you are improving or not. The line should be uptrending.
Mine looks like a roller coaster !
TTFN
Englishman Trader
Good idea. I might add it this weekend.
My resutls are also pretty erratic, with very low win rate of 38% and probably lower after this week’s results.
[...] P.S. This is the link to the previous results. [...]