Weekly Trading Review – End of Quarter 1 2017
This has been an interesting quarter for my development as a trader. With periods of consistency, marred with days of complete inconsistency.
And of course, with Jeff Davis spelling out some hard truths to one of my reviews. You can read the original weekly trading review and Jeff’s critic of it called Chasing Your System…the Never Ending Saga of a Hand Trader and my follow up post Outcomes on his comments.
Overall the quarter was profitable, not massively.
This is due to the 3 limit down days I had, which cost me 20 R. The exclusion of these limit down days completely changes my stays. Each of these limits down days was caused by allowing my emotions to be in control rather than my trading system.
What did I do best this quarter?
Spending the time over the Christmas, changing to a more systematic implementation of my trading strategy. This had benefited me in 2 different ways.
1) This research has given me a better understanding of my trading system and has allowed me to apply this system with more consistency (the majority of the time).
2) That my lack of self-belief and how I deal with the 2 fears, fear of loss and fear of missing out, cannot be simply solved by moving to a systematic system.
The realisation of no.2 and the public bollucking by Jeff, was a wakeup call. That whilst I have an edge, that until I got to grip with the weakest link of the chain (me), then I was never going to make the progress I wanted.
What did I do badly this quarter and what lead me to do it?
The periods of inconsistency both in terms of not following my system on down days thus turning them into limit down days and fear of taking a trade after taking a string of winners.
Why did I have these periods of inconsistency?
This has been discussed numerous time before in my blog post and Jeff article. But it comes down to fear and the focus on the outcome of one individual trade.
Edge is all about executing in a consistent manner to let the outcomes work out in your favor over time. If you don’t consistently execute how do you expect to succeed?
The above the statement I already knew but I had done nothing to really solve this problem I was constantly circling this and not dealing with it head on.
yet still at this moment I was focused more on the potential outcome which is never in my control anyways. The only thing I can control after an entry is where I exit. That’s it. Got that? That’s it. So it became awfully obvious that I wanted to avoid what I had concluded would be a loss in that moment. Like Adrian I knew this was wrong, wrong, wrong. I did my work. I had confidence in my work. Shit, I was proud of my work. That wasn’t the problem. I trusted that the outcomes over time would be fine. I believed that I was actually helping the performance by not executing. BS total BS. I somehow believed that I was going to use the screen to help. I thought this nuance or that nuance had more relevance than my work. I focused on a stat that I had already known didn’t matter or it would have been included. In the end it was just I didn’t like or feel comfortable for any myriad of BS reasons. I knew I had to somehow get comfortable in this uncomfortable situation. That is when I decide to get real and find a way. I decided to quit seeing the trees and start finding the forest.
After this, I looked at my system and was there a way to feel more comfortable about feeling uncomfortable. Jeff article concludes with him detail the way he overcome this with a tool that helped him.
I had these tools, and I was still not taking all the trades with consistency at both ends of the spectrum of my trading.
It has got to the stage where I could carry on the same way, profitable not anywhere near to the potential of my system. Why would I want to continue like that? I could make a better living going back to sailing.
It was time to shit or get off the pot.
If I have the tools, and it is me, what way can I get to focus on the bigger picture and not the individual trades. Constantly repeating the same behaviour has not helped.
The rules are there. All you have to do is to follow the rules. You don’t have to do anything but follow the rules and it will make your life very easy.
Trading to Win by Ari Kiev
Traders probably similar.. pic.twitter.com/ZP9tDz9KMC
— Jeff Davis (@Shaq48_Trading) March 24, 2017
— Passionate4TradingES (@Passion4TradeES) March 14, 2017
I have spent an enormous amount of my time fine tuning my system and I know what I must do.
Of course, my problem is that I am focused on finding winning trades. That is the wrong, the completely wrong mindset.
My focus should be only on following the rules. That is, it. The focus on the edge and performance is something to be done on outside the trading session.
With the focus on the following my rules, that means taking my triggers in line with my context read, and not checking my P+L on even a daily basis, only at the week end.
With that mindset change, the weeks following Jeff article, I have found that there is less stress in my trading, and I have applied my trading a lot more consistently since then.
I am not claiming that my trading has been perfect since then. I have still made errors, but I have found that my consistency has been better at both extremes, and I have taken trades which I would normally skip due to being uncomfortable for whatever reason.
Actually, I have found that a lot of time that I am placing the orders without much thought (on the blind levels), as I know the context, I know where I want to trade and I know what I want to see for the level to be entered blind. As I see the criteria being meet I have found that I just placed the orders.
I have also found that my consistency has remained level even when dealing with family problems that would normally effect my focus. I have taken the time off to deal with these outside the office, but upon my return have slipped back into trading without these effecting my trading. Which is a big difference, normally I would trade poorly or I would not trade as I would be distracted by these issues.
This is a big improvement. Therefore my main goals for the next quarter are all tied into my focus on following the rules.