Saturday, January 28, 2012

Live Trading Account Performance Update






















One of the biggest unknown factors with any trading system is human judgement and intervention.  Where I thought I was being prudent to take profits earlier on 2 trades, I ended up instead just reducing the performance of my system by greater than 5%.  Nevertheless, these are the benefits of trading a strategy on a live account.  There are so many other factors that are outside of a controlled simulation.

Furthermore, the loss on the second trade of 11.3% was quite significant but not entirely alarming.  Performance results from simulation from September to November of 2011 was uncharacteristically high and volatile.  Also, the average days a trade lasted was 8 during simulation, but so far, it has been 18 days.

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