Okay so I conducted my trial over a month and not a week, hence the delayed report.
I'm pleased to say I made £800 this month, all trades at £2 point and with a 10 point stop loss. I closed many trades manually for a few points profit as I didn't like they way they were behaving.
112 Winning trades
28 losing trades
So, by being really careful and pinching a few points here and there with minimum exposure to the market I'm £800 tax free better off this month.
I think we have the blueprint going forward don't you?
I could let the experiment run on metrics without my interference, say keep to a 10 point stop & limit and go through the results at the end of next month or I could continue as I am....I have a few days to think about it.
Hope you all had a profitable month.
Keep it going!
ReplyDeleteIf you kept screenshots from those days, try to learn from the trades and see why they won/lost to build up your confidence in the strategy.
Maybe to improve it going forward you can keep an eye on the volatility by using ATR, as in some instances the ATR is probably like 2pts so no need to get stopped out for 5xATR. But I guess its not a big deal as long as you keep up the high win rate.
Most importantly, with the profit I would say dont raise your stake yet. Instead reinvest that profit in longer term positions. So use daily charts, pick stocks with good fundamentals and a technical setup (or simply just buy a pullback in an uptrend). I suggest that you keep 1/3 of your capital for scalping and 2/3 for swing trading. Its less risky, you'll learn more, and will avoid the gambling impulse when you have the option to pour over daily charts instead of watching the ftse going up and down every two minutes.
Oh and well done!
Thank you for your comment and taking the time to post, I'm sorry for my delayed response.
DeleteI agree with you about my trading size, I'm so comfortable at £2 point, it allows me to trade freely without fear (although I remain respectful of the market) and that's liberating.
When I raise my stake it will be by £1 point per month, that way I will build my account size (I plan to let my profits grow in my trading account for the time being) and it will be to the same scale I trade now.
I have 'paper traded' swing trades and found my calls are mainly successful but I don't like to trade that way. I'm most comfortable trading over very short time frames.
I see how illogical it may be that I'm not taking trades that potentially could make me more money and I may adopt your suggestion in the future but for now this suits my personality, I'm finding some success and I'm staying with it for now.
Best of luck with your trading.
I found this May a terrible month to make money in the markets due to the low volatility. I managed to pick up £1K from shorting the FTSE 100.
ReplyDeleteI think 90% of traders would love to repeat your terrible month.
DeleteThanks for posting and I wish you more success next month.