Contest Position Update

Contest Position Update Information

I think there is a useful lesson in my performance for small traders, so I thought I'd share it:

Total Open Equity: +$1000 approx
Equity/Initial Margin = 100% (can't add new positions)

Big Losers: 2 (1 is near stop)
Little Losers: 3
Little Winners: 3
Big Winners: 2 (for both of these I have doubled size)

Since I can't add new positions, I have had to skip a bunch of signals.  Currently, there are 6 open positions I missed:


Big Losers: 1
Little Losers: 0
Little Winners: 3
Big Winners: 2



There is an important lesson here. The idea with system trading is that you take every signal, since the results of any one signal are essentially random (anything can happen).  If your system has an edge, then over time taking every signal is the only sensible way to go.

If you are undercapitalized, like I am in this system account, then you may have to skip signals.  If earlier trades had done a bit better, I'd have enough equity to not skip signals.

To repeat an earlier post, I funded this account with the bare minimum, since the contest is based on % return.  If the contest was instead $ return, I would have initially funded it with more money.  Again, decisions like this go back to your objectives and goals.

LESSONS:


1.  FUND YOUR ACCOUNT WITH ENOUGH MONEY TO TAKE ALL TRADES


2.  MAKE SURE YOUR FUNDING AND SYSTEM ARE IN AGREEMENT WITH YOUR GOALS AND OBJECTIVES