Saturday, May 25, 2013

Feb to April Trading Review

My last monthly trade review was in Feb. It seems I kept skipping my monthly trade reviews for various reasons. I think this is one area that I need improvement: don't get side-tracked by other seemingly interesting trading stuff, but use my limited time to stay more focused on my trading process. I definitely need to remind myself about it from time to time. Anyway, here's my current month trade review using my regular review template.

Trading Rules
  • Adherence consistency
I think I followed entry trading rules and hesitated on the exit rules. This is partially because I'm still trying to fune-tune my exit rules since I switched to open trade for 2 month ahead.
  • Skillful application/execution
I had a big trading execution error as describe here and I refined my trading desktop environment.
  • Monthly rule review/study
I'm still contemplating for an optimal exit criteria that works better in low volatility markets. I also realized some issues in ThinkOrSwim Software and thus started investigation on using ThinkScript for portfolio tracking and option Greeks study.

My validation step should cover review of adjustment strategy, potential cancellation of strikes in existing position when new order is about to be placed, order size and order fills.

  • Action during uncertainty
Used the Greeks and P&L chart to determine trades and adjustments, but need improvements at exits.
  • Risk Comfort ability/Adverse damage impact
There was no major risk at this period. So this was not really tested this time.
  • Trade anxiety
Not much.
  • Winning Altitude Development
Complete the 2nd part (integration of successful mind set) on the psychology of consistent winning altitude. Furthermore, created a 3rd part on applying successful mind set for trade exits.

Trading Time
  • Trading days
It was possible to meet the target of 15 to 20 minutes per day on average. But on a busy inventory closing day, it may take 45 minutes to over 1 hour to get all trades closed. It did not include the optional trade study and blog time.
  • Resting days
Studying trading option Greeks and ThinkScripts. Spent time on family and busy work as well.

Trades and Market Replay
  • Market Forecast
Was expecting a market correction of some sort, but the correction signal got invalidated quickly. An overbought market can become even more overbought in strong trending markets.
  • Trades and Adjustments
Did not find major adjustment errors in the last couple of months so far. Whether enough Delta were adjusted in the strong market is still a subject for further analysis.

To Do List

I should use this to-do-list to help me stay focused for my near term trading work.
  • Further review of Integration of successful mind set to trading rules
  • Identification of components of trading process
  • Create ThinkScripts to track the portfolio for my trading and for trades similar to super trader Karen
  • Quarterly Performance Analysis
  • Continue investigation of the effect of price, time and volatility on option Greeks

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