To answer De'Trader's question yesterday regarding overtrading or revenge trading, I have pretty much kicked that curse by limiting my number of trades per day. This varies for each of my systems which I trade (or try to trade) independently of one another.
-ZS system: 2 trades max/day
-CL main system: 1 trade max/day
-CL discretionary system: 3 trades max/day
In general, I risk no more than 2% of my account on any single trade. I don't really have a daily $ or % stop limit where I shut things down. The above limits pretty much take care of any major damage. That's what works for me anyways....
Net breakdown (contracts traded):
ZS $818(16), GCL -$672(5)
ZS $818(16), GCL -$672(5)
| RESULTS FOR DAY | |
|---|---|
| Contracts: | 21 |
| Net $P/L: | 146 |
| Wins: | 1 |
| Losses: | 2 |
| Win%: | 33 |
| Avg$Win: | 1559 |
| Avg$Loss: | -707 |
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Tq MBA for your kind answer :)
ReplyDeleteI think you have a good winning ratio system on you. 2 trade max per instrument will be a disaster for me. However my system is matter of consolidation. The more it failed, the closer it will suceed.
Yesterday's trade should be winner if I entered the last signal :(
Tq again for the answer. Looking forward to create my anti-overtrade system :)
"The more it fails, the closer it is to succeeding." If I understand what you are saying, you should be careful. This implies that the more times you flip a coin and tails comes up, the more likely the next flip will be heads. This of course is not true. Each flip/trade is independent of the previous one.
ReplyDelete