The plan for this week is to exit 1 trade tomorrow, and possibly look to add on to winning positions, if equity keeps moving up. I'm a little flexible on the timing of adding positions, as some of this is dictated by margin requirements.
In my "normal" (non-contest) accounts, I have zero flexibility built in - I do exactly what the tested, proven strategies tell me to do. This, I found, is the best way to reduce my trading stress level.
Is the exit rule mechanical or discretionary?
ReplyDeleteAll "base" entries and exits are mechanical. The additional add-on entries to profitable positions are discretionary, based on profitability of that trade, current margin constraints and possible upcoming trades. Exits for those add-on positions is mechanical.
ReplyDeleteThis is very much my trading method in a nutshell. What I struggle with is pressing the base trades. It takes a great deal of emotional discipline to be willing to give back "paper" profits in order to go for the bigger kills. Something I haven't quite been able to master yet. I initially wondered what was up with the state of your equity curve but I now see your running a competition specific position sizing approach. I've often wondered whether the only way to really hit those 1000% returns is to use a competition approach, seed multiple pots and then just think to hell with it and swing for the fences. Anyway.. back in the real world....
ReplyDeleteThanks for the comment. Unfortunately, this account would be losing money, with or without position sizing! Not a good first half for this system. Aggressive position sizing probably made it worse.
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