The portfolio has been mixed across the week and remains at a drawdown of around 14% from all-time account highs.
Natural gas has lead the way as the biggest winner, finishing up at a total of around $2000 profit including $500 in rebates. I have closed most of my exposure on this and will be looking to close the rest out soon.
EURGBP is also looking strong (+$800) as the pound has been weakening over the last few weeks. I bought this market after a classic mean reversion pattern and it has been rallying strongly ever since.
On the flipside, I got whipsawed on Ripple and lost $420 in a day after it rose 6% early in the session then crashed by 18% in just a few hours. This is one of those trades that you have to accept will happen occasionally and it can be very frustrating, particularly if the market subsequently moves back in your original direction. Remember discipline is the number one characteristic that will determine your trading success
Watch
In the latest video I also discuss a topic I think is hugely neglected by many traders when they share their trades – the painful issue of drawdowns – and why they are an unavoidable part of trading
The Two Traders
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Euan did you develop the spreadsheets in this video yourself or download them elsewhere? They look very useful to see the bigger picture but would push past the extent of my excel skills i think. Thanks.
Hi Gleman,
The spreadsheet in here is the model that I developed myself, onwhich all my trading is based. It took me 6 months to fully develop and backtest to get to the strategy that I use today. It comprises over 100,000 days of data, for over 30 markets over a 15 year period. It is incredibly useful for seeing how changing a variable affects profitability, or to look back to compare historical drawdowns against your current situation. As such, this helps you overcome all emotions attached to trading, and to just follow a set of rules!
I will try to use this more often in videos. As you rightly say, it helps people see the bigger picture and will hopefully help people overcome much of the psychological difficulties associated with trading.
Many thanks,
Euan