PAST PERFORMANCE

Regular readers of the blog will know that I maintained detailed performance records of all trades taken between July 2012 and April 2017. 

All the trades were taken in accordance with my own trading rules using the principles set out in my e-book and covered in numerous blog posts over the years.

While the mentoring programme is not in any way designed to be used as a signal service, all of these trades were disclosed in real-time to members of our group when market or stop orders were placed, together with intended entry levels, initial stops levels etc. The vast majority were highlighted beforehand as potential setups added to watchlists.

Below are links to PDF documents detailing the trades taken and the resultant performance metrics:

Trades taken 

Performance metrics and graphs

Please note the assumptions/parameters when reviewing the performance record: 
  • The starting equity was £20,000;
  • The results have been achieved using spreadbetting as the method of trading;
  • Fixed fractional risk management of 2% risk per trade (calculated on cash equity only); and
  • No pyramiding of existing positions


Spreadbetting is a leveraged product. Similar performance can be achieved by using CFD's.

Please note that your own returns may vary, depending on the exact timing of the entries and exits and may depend on your own preferred trading method or platform, slippage and transaction costs, as well as your own risk parameters.

Finally, please refer to my disclaimer.

2 comments:

  1. hi Steve. i saw your performance metrics and graphs...i am a bit puzzled. In 5 years (2012-17) , you netted profit of ~ £95000. isn't that less for a full time trader? or less for 5 years time...cannot make a living with that profit in the UK. thanks

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    Replies
    1. Hi Unknown. Thanks for the question.

      1. While the trades shown in that period were based on actual entries/exits, regular readers of the blog will know that the starting equity was assumed to be £20,000. For those who start with differing levels of equity, as the metrics are also expressed in percentages or in units of R, it would also be easier for people to relate to. I have amended the narrative to make this clear.

      2. As mentioned above, most of the metrics, along with some of the graphs/charts showing profit distribution, drawdowns, equity curve etc., as well as the profits and losses discussed on the various blog posts are expressed either in percentages or in units of R.

      3. People should NOT be looking at trend following as a regular income generator. For one thing the sheer ‘lumpiness’ of the returns, with periods of poor or non-performance, mean it is unsuitable to consider this style of trading generating sufficient income to make a set amount each month to live off. A lot of people (myself included) prefer to look upon it as their own pension ‘pot’ and are looking to compound it over the long-term, NOT as something to live off month by month.

      4. Due to the nature of the method, there is no need to be sat in front of the PC all day, every day. If you structure things correctly, the actual ‘trading’ can be done in a matter of minutes once the market opens, and by using scans you can also leverage your time outside of market hours to look for potential new opportunities.

      5. As the actual business of trend following takes so little time, you can continue to generate income from other sources. A lot of people I know are trading using a method like this while continuing to be in full-time employment.

      6. This way, there is little stress to make £x per month to make ends meet, and hopefully you can allow your returns to compound over time.

      Hope this helps.

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