Some points of note:
- The chart has been based on an initial cash balance of £20,000, with a risk per trade of 2%;
- You can see the equity is moving up in a step by step fashion - this is as expected, as weeks go by where there are small winners cancelled out by small losers, and any remaining positions are kept open while meaningful trends develop;
- The big jumps in equity are when one (or more) trades where profitable trends have developed over a period of time have finished;
- The very small drawdowns have been achieved by the conservative initial stop placement used;
- The drawdowns are also limited by the very aggressive cutting of positions that do not act as intended (per the addendum rules) - some are closed within a few hours of being opened;
- Within this period there has been one stock that gapped through a stop level. This resulted in a loss of almost 1.7R;
- The win rate is slightly above 50%, and the profit factor is in the region of 2.8;
- Due to the revised rules there have actually been a couple of additional trades where, per the original system rules, profits would have been made, but under the revised rules, small losses were actually incurred;
- The bulk of my losses incurred are now less than 0.5R, whereas under the original rules, almost 25% of the losing trades would have ended up being a 1R loss.
- More aggressive initial stop placement, closer to the entry price - this would have increased the position size or number of shares traded on each position, BUT this would also increase the risk of incurring a loss bigger than 1R should a stock gap through a stop level;
- I have a self-imposed limit on the number of positions I can open on any given day;
- I spend very little time actually trading or looking for potential new setups each day - the scans I use update in real-time, and as a result I have missed plenty of potential entries (some of which have been traded by others using the system);
- Due to the rules explained in the addendum to the e-book, I am very lightly invested at all times - for example, as of last night I have less than 1% equity at risk on my current positions (barring any gaps down through my stop levels).
To find out more, simply get yourself a copy of the e-book (with the addendum), or to access my own trades in real-time, as well as undertaking full training and gaining 12 months' worth of support, consider joining the mentoring programme.