With diversifying in a timely manner we will not have the same Strikes and we will have Profit rolling in week over week. Thats the profit conveyor.
In general I have one trade per day. There are 20 trading days in a month. More trades = more turn over.
Targets
- Target for May is 25 trades, Long term target is 4 trades per day but not now.
- With our benchmarks we are in the zone.
- Reward Ratio of more than $2.00
- Trade Limit of more than 20%
- Winners to Losers better than 60%
- Account long term performance at 7% per months, this month to improve to 3.5%. A 7% a month is a 100% Gain a year.
Performance
- All over all I am pretty satisfied with the results and the development. I feel more confident now and know exactly what to do if the trade turns against you. And I did it many times now.
A gain of 2.8% a months still results in a 43% Gain annualized. We have 71% winners and making a profit of $2.29 per Dollar we lose. Our allowed trade size is 59% but it is capped at 15% in our mechanics.
That is an awesome result!!!
- Last month we came out of the hole. We made more money with many more losing trades. Another thing to consider. If you calculate your Kelly Criterion you exactly know where you have to improve and where you are actually good at.
The winners were below the 60% mark and the Trade size at 4.5%. But still we were making $1.45 for every Dollar down. And we were up more than in April. Still a great performance.
- February was still a learning curve since I still were taking the course for a Hedge Fund Manager. But things were most definitively improving since. Keep track of your numbers and trades and you can see and evaluate your performance. If you dont do statistics and have a proper documentation, like Hedge Fund Managers do, you are a gambler in my opinion. You are not the bank in the casino but you are pretty good on the slot machines! You will lose it all, guaranteed.
February was tough for many people I heard since the market looked like turning down but then flattened out. How can you make money in flat markets? We do.
The Winners were great at 60% and so the trade size at 17%, could have been better. Benchmark is 20%. But we lost money, about 6 cents on a Dollar invested. Hence the account was down by 0.7%. But January was the worst.
- In January I started the course and had to force myself to get away from gambling. Picking trades without knowledge but out of feeling. Based on lagging lines on the charts and irrelevant studies like RSI of MACD. Look for movement and jump in because many traders are doing the same. Those Indicators for the most part are useless. For certain they are useless in picking your assets! They do not provide you with the metrics you need to have in place to make consistently money.
January was the most frustrating month so far. I was still confused with gambling and had to leave the itching behind. We lost 58 cents on the Dollar and the account was losing 7.3%. Even though we had more winners than losers. So Kelly cut down the trade size limit to -49%. Well these are alarm sirens going off everywhere. All systems RED!!
- December was still gambling month and we made great profits. We brought the account up by 35% and we did so in the months before! Great times but gambling! Winners great and we made great profit, $2.15 on a Dollar. Trade Size was over 20% as well.
But this luck will run out, I guarantee you. Have done it, seen it and been there. It is painful. Very painful!
So thats it. We are improving and we will see what May will bring. We have our parameters and the metrics all lined up and we will operate according to our mechanics. There is no emotion involved. If your emotions going up reduce your trading size. That simple. I trade at 15 - 20%.
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