I stuck to trading the same Trading System for the whole week (a mini-record for me) - Discretionary Trading entries based on Range Contraction in the M15 Candlestick Chart, and Mechanical Stop Loss Placement with very slow trailing. That's because I haven't hit a big drawdown with this trading system yet.
Intra-Trade Drawdown and % Booked
On an average, in a winning trade, I had a Maximum Favorable Excursion (MFE) of +69.90 points, and I booked only +42.23 of those points. That is a profit booking of 60% of MFE. For large moves, that's a lot of potential profits given up. The average Trade Drawdown (TDD) was -34.14 points. That is 49% of the average MFE, and 81% of of the average profit booked. A very inefficient trading system. This has been the characteristic of the system this week. During my visual backtests, it was not so. In the backtests, I would enter a trade and exit it and the end of day on most days, leaving very little profit unbooked...
But the weeks other Trading Stats - a Win Rate of 82% (9 out of 11), and a Payoff Ratio of 3.28 are quite impressive.
| Date | Position | Result | MFE | TDD |
|---|---|---|---|---|
| 01/11/16 | Long | 23.50 | 39.35 | -15.85 |
| 01/11/16 | Long | 46.30 | 74.20 | -28.80 |
| 01/12/16 | Short | 21.00 | 41.35 | -20.35 |
| 01/12/16 | Short | 5.30 | 33.70 | -40.70 |
| 01/13/16 | Long | -9.80 | 1.40 | -11.20 |
| 01/13/16 | Short | 75.35 | 125.90 | -50.55 |
| 01/13/16 | Short | 19.95 | 50.00 | -30.05 |
| 01/14/16 | Short | -15.95 | 15.95 | -31.90 |
| 01/14/16 | Long | 95.00 | 127.10 | -32.10 |
| 01/14/16 | Short | 20.00 | 40.00 | -41.95 |
| 01/15/16 | Short | 73.70 | 97.50 | -46.90 |
| Total | 354.35 | 646.45 | -350.35 | |
| Average | 32.21 | 58.77 | -31.85 |
Today's trades
Today's trade was a long grind - the longest of my trades since I started this blog. I entered the trade on the second M15 bar with a 20 point Stop Loss. Ideally, I should have entered on the third M15 bar with a tighter Stop Loss - in which case I would have made a loss. The market ranged and the trade dragged on for a long time - I had to wait for exactly 255 minutes before I could move my Initial Stop Loss according to the Mechanical Stop Loss trailing rules. In the interim, I was the proverbial 'Bakre ki Amma', expecting my trade to be slaughtered any moment. The trade ended well... the price went South, and the profits went North. ☻
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