Sunday, December 17, 2017

And here we go again

The title of this post refers simply to my lack of motivation in trading demo accounts which in the end it always ends with a drawdown as is the case of this week when after first three days of the week being winners Thursday in the afternoon I started to play with fire because I was like up 50% anyway so, figure that, I could afford it. As a matter a fact, Thursday, the end of day was written somewhere at -10%, I was slightly profitable up until I thought its a good idea to just trade no matter what. I don`t know about you but for me 36.18% gain in 41 days of trading (this is where my performance including commissions is actually counted) isn`t exactly something to be proud of. However, given the fact that I`m new to futures trading and not only that but I`m also new to Crude Oil because I never traded the CFD on Oil available with some of my FX brokers, I have to say that I`m partially satisfied with the result. And yes, that drawdown is simply annoying and it should not be there but its the result of discretionary trading. As I was saying in one of my previous posts,  a discretionary trader can do much more than a mechanical system but it does come with a price, and that is that sometimes you can lose focus and forget what you're playing with. And contrary to popular opinion, its not the losing that its doing the damage its the winning. When you win and keep on winning its the time when you should take a break before you start feeling like asking "Jesse who?", btw the only book that I found useful about trading was "Reminiscences of a stock operator" and the only trader that I`ve ever heard of and admire is Jesse Livermore.
  Which lead me to this weekend work of having some fun in the attempt to put in place a completely mechanical strategy for the days when I`m not in the mood. Of course things aren`t that simple as to write a mechanical system that is able to get anywhere close to my discretionary trading  requires many work hours, more than I`m willing to dedicate, and given the fact that I know I will not use it anyway because I like to trade myself I do not consider it a task to be done but more close to lets see what do I get if I get some crunched numbers from my algos and put them in a mechanical system. Unfortunately for me I do not have enough futures historical data  and right now the test is made on 4 months of data which I use for my algos in my  Crude Oil charts. The coding is in progress and slowly advances as I am in the mood to write it, in truth being told I find myself enjoying more the part when I figure it out how to do it than actually writing the code for the whole thing, I seem to lack the motivation of doing so.

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