Good day! Once again, I would like to say that I am very sorry about the drawdown on the account, this is unacceptable, but this is the market and it is always necessary to take into account the risks. But the essence of this post is different.I would like to tell you what has changed as a result of this drawdown and how the strategy has changed.
1. Input pattern
Was: entry points are not specified. In other words,the exit from the traded area, in which I had an open interest and the market should not return to it, was not studied in detail. After entering into the transaction, I racked my head whether I did it correctly or not.
Now:This factor has become more detailed and has specific criteria. I don’t think about it at the moment. The strategy says open a deal, I open it without hesitation.
2. The context of the market
It was: the Application of the pattern was always isolated from the market, that is, I entered the pattern without taking into account the context of the market.
so: now there is a group of specific market patterns that in a certain context are the entry point, and in another context I miss the signal.
3. Take-profit
It was: the transaction was always fixed according to uncertain criteria
It became: I try to enter 2 contracts (it all depends on the risk, but no more than 3-3. 5 percent of the Deposit) fixing 50 when the goal is reached 1 to 1, therefore we will secure the transaction and the transaction becomes at least break-even, the next part is fixed 1 to 2
Development: Now I am working on understanding when it is possible to hold a deal more than 1 to 2 and there are specific developments, the last gas deal is an example of this, so the fixing was not 1 to 2.
4. Risk control
It is worth talking about the risks, since we reduce the profit by reducing the position, so you should do the same with the risks.
Was: the only limiting factor was a stop order without any criteria.
was Developed exit criteria, and reduce the position in the course of the transaction (Example: the last transaction on the British pound, Yes, in fact I was right and the market fell, but I think that it is better to stay with their money than are more likely to lose) the reduction of the position is the same (50%) + the closing of the transaction to carry out at breakeven (if the market allows you to do this)
Development: Nevertheless, I want to reduce the number of facts in which I reduce losses, but in the movement of the market I find myself right.
As for the last loss-making deals that should not take place:the SP-risk in the deal was $ 400, but the market opened gaps, I should have been closed at the first available quote, but there were technical problems on the resource (I wrote to support they confirmed this), the risk with the gap was about$1000. Oil - everything is doubtful here, the strategy did not prohibit buying oil in the short term, but I saw the price and chose not the best. But this is not the point globally (SP was also a short-term deal). The only conclusion I can draw from this is to work on the entry criteria in the short term, after which I do not experiment on real data on this strategy, while I work through it thoroughly.
To sum up, what I have described in this post I would like to Express my gratitude to this resource, thanks to it I have the opportunity to grow as a trader (I think not only I) and try to achieve better results. I did not write this post sooner, because I don’t like to talk about future perspectives and changes podtverjdat not the case. Currently, we can say that the strategy has come out of the drawdown with a moderate use of the Deposit and compliance with the risks, maybe this is not an indicator, but trading becomes much more confident.
Thanks for your attention! Profits to us!
I apologize for my English, I am ready to answer any questions
