Friday, September 14, 2012

Updated - protected Twitter feed performance

These days I'm more inclined to express my performance to others in terms of overall R attained, rather than in percentage terms. This is because everyone has their own opinion on how much to risk per trade, as well as their own overall position limits (and consequently overall portfolio risk).

However, as of today the cumulative performance of the calls made in the protected Twitter feed make for good viewing. Based on 32 trades made, there has been an overall profit of more than +37R achieved. For those who like that expressed in percentage terms, if you were risking 2% per trade, that equates to a 63% return in two months.

As I've explained to some other traders who have seen the spreadsheet I maintain logging all this, the sample size is still way too small before any hard conclusions can be reached. In addition, the feed was started when the current uptrend was just about to start, and therefore we have not had to deal with a reversal of trend, and the inevitable giving back of some of these open profits. However, it clearly demonstrates that when a trend DOES occur, and you stick with your positions, how quickly profits can rack up.

Given what I also know about the historical performance, having used the same system and parameters over a number of years, these types of periods are not a flash in the pan, once in a lifetime phenomenon. Preservation of capital, by using strict money management rules, during periods when conditions are not as good for trend followers, mean that when these trendier phases DO come along, we can make significant profits in a relatively short space of time.

I'm always my harshest critic when it comes to my own trading, and there are a couple of trades within this sample that maybe I shouldn't have taken, but by the same token I could easily have placed more trades as I am still below my position limits, but overall I'm pleased with the result. Judging by some of the comments of other traders who use the system and I have spoken with, either directly (via 1-2-1 training or mentoring), or via webinar, they are pretty pleased as well :)

How long the party will last is anyone's guess - could end next week, could be six months down the line. Until then, we'll enjoy the music. And remember, if you want a piece of the action, then consider some 1-2-1 training, or join the mentoring programme and find out how it's done.

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