Tuesday, February 10, 2009

New Worst Day v2.0

I mean really worst day. Not much to say. I'm pissed now but i've traded today perfectly. I just caught some nasty losses and some bad luck. First trade had a 1.5pt stop, got nailed into the down spike this morning and got slipped two ticks on exit for -2. Then we got into another trade which should've been par but by the time it hit that level price was already back above my entry and racing upwards. By the time I market ordered out of the position I took a -2 pt loss rather than a +.25 win. Nothing I could do, markets were moving so fast I was lucky to get out when I did. Between the par level being hit and price rallying 1.5 points above my position wasn't more than 3 or 4 seconds. Shit happens. Yet another example of how your backtested results get skewed in live trading.

Afternoon was dull but again fired off a buy signal that flat out didn't work. Max loss. Then took another setup right after it that was a valid double bottom per my rule set and bam got nailed again.

All totaled we really screwed the P/L pooch today. Not for a lack of trading correctly, fear, hesitation, or emotion, but simply trades not falling my way. Regardless its hard to muster through a day like today when you can't seem to get anything to go right. I'd be lying if I said I wasn't livid right now - I am. But I traded my method and my method got owned today, plain and simple.

The only way I can make this loss back by the end of the week is to trade flawlessly and I intend to.

Trade Results:



Michael said...


Under normal circumstances your system would have done much better today, but just after Geithner's speech started at 11:00 eastern, it was like trading during a fed announcement. It was just a crazy day. I'm sure lots of systems did poorly today.

Ziad said...

Tough day... these days happen to all of us. I've just been through a full 1 week period where nothing seemed to work day after day!! But letting up after that is the biggest mistake cuz usually that's when a nice ultra profitable period shows up.

Anyways, regarding the one par trade that got away from you, if you know that you're going to scratch for +0.25 if it gets back there why don't you just place ur stop order there ahead of time? at worse you'll get a tick of slippage instead of a couple points by trying to get out with a market order with the market flying.

Anyways good luck and stick with your system. These periods of adversity are really what trading is all about. It's easy to be disciplined and motivated when things are going good- it's staying that way when they're going bad. So keep at it.


Matt said...

Ziad - I do exactly what you are suggesting but today the market hit my par level and reversed before I could drag my order down in the Matrix to the new level. Were talking it hit the level and was back above my entry within 2 maybe 3 seconds. And once the markets trading above where that stop is I can't move it down there in the matrix anymore so my only choice was to kill it through a last resort "close position" function that market orders out everything.

E-Mini Player said...

As much as today sucked, I'm glad to see that you stuck with your plan and continued taking trades without hesitation. I doubt I could have done the same.

I look at losses as tuition (or cost of doing business). Did you take away any key learnings from today? Any lesson? What, if anything, would you do differently if/when you run into a day with very similar price action?

E-Mini Player said...

Btw, you should setup your Trade Station market depth window to automatically send in a bracket order. I was playing with it and if you check the "Attach OSO", and select "Exit -Brk - 1L/1S" from the drop-down menu, TS automatically sends a bracket order as soon as your entry order is filled. You can then adjust the stop and target orders as needed, but at least you have some protective orders in place right away automatically. Check it out. Get with me on Yahoo if you want me to walk you through it.

Matt said...

I was messing with the OCO orders... that works. Thanks for the tip Awais!