Over the Christmas break, I spent a lot of time reviewing and analysing my 2016 performance. So before moving on to what I tend to change and what my focus will be. It will be good to go through a general summary of what worked well and what I did poorly.
What I did well in my Trading
1. My levels where I intended to do business overall were very good.
2. My context read was generally good to very good.
3. My consistency has improved compared to previous years. Though it nowhere near where I want it to be.
What did I do poorly?
1. I am not trading my levels within my framework of context and stats particularly well.
2. Whilst my consistency has improved, I am still having problems with decision fatigue at the end of session and accumulative fatigue over the long periods (3 months approximately)
3. Micro management is a problem that ebbs and flow thought out the year. See 1.
For 1 and 3
Why am I not trading my levels within the framework of my context and statistics?
I am too focused on the levels. Going through my previous reviews and study’s, it has been about narrowing down what levels, triggers etc. I have spent very little time working on what regime the market is in, and how these levels play in to the stats I have and my generally good context read of the market.
Why am I focusing on my levels?
I am trading the reaction as that has me in my comfort zone and keeps my fear of loss under control.
Also, my constant focus in prep and homework is on levels thus it natural that this becomes a focus of my trading day.
Why am I suffering decision fatigue?
As my focus is so much on getting in as close to where I am wrong and I miss the trade, these causes this then causes me to worker harder to find a second entry or an alternative setup. When an entry in to the original trade within my context would have been much simpler.
Too much discretionary in my trading generally leads me to end of day fatigue.
Too much time staring at charts where I know I have no edge.
My weakest link in my trading is me and that needs to stop.
My focus for 2017 is to make me the least important part of my trading system.
I am going to do this
By breaking down every part of my trading system and making it more systematic on all levels. This will strip even more of the discretionary side of my trading out, thus reducing decision fatigue. I do not have to catch every move, but I need to catch every move that my trading system tells me to within the frame work of my context / stats.
If I do not get a set up then fine, but my triggers are so discretionary that it requires a lot of focus to take the trades.
I find the blind trades a lot less stressful over time, the hard work in the blind entries is deciding which level to take blind.
So, by getting more systematic or black and white in these parts of my trading, will reduce the amount of decision making.
I am not just blinding changing my process for these. I have been learning to code trading systems in RT Investor, so that I can break down each set up / trigger and back test to see if these have an edge.
I am going to focus on the setups that bring the best return and stop trying to be a generalist.
I am going to focus on the sub-sessions and market regimes that I know my edge works the best in.
I am going to spend more time working on improving my integration of my stats and context into my trading. Again, though systematic process.
I am going to improve my taking of regular breaks over the weeks to ensure that I am maintain my focus.
I have broken down the above areas of focus into more specific outcome goals, then process goals followed by performance goals. This will enable me to work towards the bigger focus with some consistency and feedback.