April Review – Still Improving

May 1st, 2007

You may remember last month I started trading an additional system. It worked out great in March, but even better in April. When I started the breakout trading, I thought it might lead me to over trade. Oddly enough, I think trading two systems has allowed me to be more selective with trades in both systems.

If you trade different systems or variations of the same system, StockTickr’s use of tagging makes it really easy to see in black and white which system is performing. It’s really been invaluable for me and has opened my eyes to several aspects of my trading that surprised me. For example, I’ve really concentrated on improving my trading when I trade off the 15 minute charts. This was the first month that my 15 minute setups performed better than my 30 minute setups.

Here’s my tag performance table from April:

Performance by Tag

Tag Total R Win % Expectancy Trades
long 18.92 41.67 0.79 24
momentum 15.01 38.10 0.71 21
Dummy Trade 9.00 66.67 1.50 6
15Min Bars 7.65 75.00 1.91 4
short 5.09 66.67 1.70 3
30Min Bars 1.35 50.00 0.68 2

I made 24R for the month and that was after an absolutely terrible start on the first day of the month. I was really pleased to rebound to my best month so far in terms of R, dollars, and expectancy (0.89). My win rate was not near my best which also gives me encouragement.

As I’ve incorporated the new breakout system, I’ve been risking a smaller amount for the time being with those trades. Here’s a new report I created in StockTickr to track risk percent. This first report shows my overall average risk per trade, regardless of the system used.

Total Risk Percent

This report shows my average risk per trade for trades that I’ve tagged “Dummy Trade” which I use to identify my dummy/fib trading.

Dummy Trade Risk Percent

As you can see, I’m trying to slowly increase my risk percent for my Dummy trades, but overall I’m risking less because of the breakout trading. Around January, I was really focussed on increasing my risk per trade with a goal of getting it to 1% of my total equity by August or so. I’m less concerned about that risk percent overall, but I’d still like to get it significantly higher for my Dummy trading. With the breakout trading, the stops can be so tight on even high priced stocks that I would run out of buying power quickly if I tried to risk my full amount.

2 Comments

  1. Tyro Said,

    May 1, 2007 @ 4:23 pm

    Wow, 24R, that’s incredible. You should be proud. If you hit your goal of 1% = 1R, you’re going to be a rich man soon. I can hardly wait to see such a deserving person succeed.

  2. Dave Said,

    May 2, 2007 @ 4:50 am

    @Tyro: Thanks very much for the kind words. It’s been surprising to me how difficult both practically and psychologically it’s been to raise my risk percent. Thanks again for the encouragement.

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