Sunday, February 24, 2013

Performance Review of 4th Quarter, 2012

I finally had some time to do a review on my 4th quarter performance for last year. The purpose of my various trading reviews is to identify the strong and weak points in my trading from different angles and perspectives. With quarterly performance reviews, I hope to examine my trades and their performances at a higher level. I plan to work on a quarterly review template in the future in order to come up with proper contents for the review. It will probably be a good idea to illustrate monthly P&L in some of my option cycle charts.

I used a spreadsheet to calculate the P&L and commissions of each trading month for last Oct, Nov and Dec. The quarterly profit was not too bad, considering there were a few trading errors made as posted before. It received a profit of $1,100 approximately. Oct and Dec profit was in the expected range of 9% ROR and 5% ROR respectively. The Nov trade was basically flat. I reviewed my November blogs and realized there were two issues in the Nov trades: too much Detla adjustment and trade cancellation error.

Overall, I also think there might be some over adjustment issues in the quarter. I'm also looking into further analysis of my trades to determine how to provide proper amount of Delta adjustments. I think I will be able to improve my trading rules based on more data points from my future trade analysis.

In the next quarter, I need to improve on the following areas (ranked in the order of challenges):

  • Proper amount of Delta adjustment
  • Avoidance of over-adjustment
  • Elimination of known trading errors

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