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Showing posts from September, 2012

Trade plan analysis

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Last week I did not have time to write my weekly post as I was traveling. However I did do my usual analysis and made some trades. In this post I would like to share with you the analysis I did on five months of trading my trade plan. I thought it was time to do such an analysis as I am not making any considerable amount of money trading. I am not losing any money, but after 5 months of trading I am only up 4R. At an average of 2% risk per trade that means I made about 8% on equity. This is not bad for a managed account / fund, but for the time and effort I am spending on trading, I could say that I would appreciate a higher return. And more importantly, the return was not consistent, as you will clearly see below.

So I went through all my trades and made a worksheet with all trade outcomes in terms of risk (R). I plotted a graph with the cumulated R of all consecutive trades . Let's have a look:

What does this graph show? Well, it shows that first I traded slowly down in April (tra…