In the past, I would get got traded my bearish view, hitting my stop, together with taken my loss. In my recent trading, I don't get got a merchandise unless everything lines up. The record activity contradicted my bicycle stance together with I stood aside earlier the number--and subsequently the number. I never traded. I finished the calendar week at my high H2O grade for the year. By trading super-selectively, I've sustained a high hitting charge per unit of measurement together with a high Sharpe ratio. The average daily volatility of my P/L, however, is quite low. By waiting for everything to line up, I'm making coin when I play together with I'm non playing all that much.
Early inwards the twenty-four hr menstruation on Friday, subsequently the unloosen of the number, I said to myself that nosotros get got a potential tendency twenty-four hr menstruation inwards play. Buying early on weakness was a practiced trade, albeit non the groovy merchandise that I've looked for inwards waiting for everything to line up. By non taking practiced trades together with exclusively taking the groovy ones, I've been maximizing my risk-adjusted returns (how much I brand per unit of measurement of run a jeopardy taken), but leaving a lot of absolute returns on the table.
Friday was a dainty instance of how I've expire a practiced trader--and how far I involve to expire to expire a groovy one. But taking trading to the side yesteryear side degree agency the trading send has to larn out the rubber harbor. In my case, it agency moving out of the comfort zone of trades where all lines upwards to get got trades amongst solid, but to a greater extent than uncertain odds. From the weight room to the trading room, all increment occurs yesteryear pushing the limits of comfort.
There are a few worthwhile takeaways from this reflection on performance:
* You can't improve your surgical procedure if you lot don't empathize your performance - I tin quote my P/L, average drawdown size, hitting rate, Sharpe ratio, average daily P/L volatility, etc. at the drib of a hat. The surgical procedure stats don't lie. I'm either getting ameliorate or worse, doing things correct or wrong. Having detailed surgical procedure stats allows me to get got a detailed agreement of performance. The trader amongst few trades, a practiced hitting charge per unit of measurement on trades, but negative P/L has a real dissimilar employment from the trader who has many trades, a wretched hitting rate, together with the same P/L. If you lot don't expire on score, you lot can't improve your score.
* Qualitative data counts equally well - Sometimes the best data comes from trades non taken together with decisions non made. Those won't straight demonstrate upwards inwards surgical procedure stats, but may move essential to agreement our strengths together with weaknesses. Friday's non-trading, for me, carries a lot of information, but won't stand upwards out inwards my end-of-month or end-of-year stats.
* Influenza A virus subtype H5N1 groovy bargain of data tin move gleaned inside surgical procedure curves - When inwards the yesteryear 12 months get got nosotros traded best? Worst? What were the marketplace weather condition at those times? What specific things were nosotros doing right? Wrong? Sometimes, inwards playing to our strengths, nosotros do novel vulnerabilities. What I've done good inwards trading is get got the drama out. Drawdowns get got been limited; the P/L has terra firma higher. In taking the drama out, however, I've created a novel comfort zone. The shape of our surgical procedure curves invariably say an of import story.
The bottom line is that double-decker is a verb, non a noun. It's something nosotros must do, non a individual nosotros hire. If nosotros are to hand our surgical procedure potential, nosotros must move both double-decker together with performer, studying ourselves equally intensively equally nosotros report markets.
Further Reading: Becoming Your Own Trading Coach
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