Wednesday, August 31, 2011

A little rough on the edges. Daily loss target exceeded -140%

Win ratio was only 33% which is sub-par with past results.  Still keeping positions 50% or less of average size.  I'm realizing that there may be a direct correlation of when volatility is extremely high to the success of the reversion method i've been utilizing.  By advocating tight stops with robust targets, i've managed roughly a 8:1 ratio reward to risk.  Needless to say i would take profits well before the target but was still able to average daily target goals by +200-300%.  For the last week and a half i've been taking larger losses and find myself back to square two (that's just one step above step one, lol).  I am always open to constructive criticism and will continue to extrapolate the daily data from which i've traded.  Here are today's results of a few for further self education purposes.

AA - 2 shorts that didn't work, 1st stop was a good loss, 2nd stop i don't agree with now.

CMI - Long off opening strength and got filled long at high and stopped out at low.  JEEZ

FFIV - All looked well on short.  LESSON: USE NEW HIGH STOP AND ADD +.10 AND SIZE ACCORDINGLY TO RISK

POT - Tried to short, didn't want to chase so never took it...and it became the one that got away

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