Saturday, August 10, 2013

May to July Trading Review

My last monthly trade review was in May. Since then, I had two trading cycles, a smooth one lasted less than 1 month and the other tough one lasted over a month. I was not able to review my trade on a per trading cycle basis.  Overall, the June cycle went well as market offered a good opportunity while the July cycle was rough for me. Here's my current multi-month trade review using my regular review template.

Trading Rules
  • Adherence consistency
I think I followed entry trading rules and the exit rules. There is an improvement for the exit rule since I've fune-tuned my exit rules to make them clearer.
  • Skillful application/execution
I had a cancellation trade error as described in a previous post when I was making multiple adjustments in a short period of time. My trade validation step does cover review of adjustment strategy, potential cancellation of strikes in existing position, order size and order fills, when new order is about to be placed. But I may still forgot checking one of these components occasionally or in a trade adjustment spree.
  • Monthly rule review/study
I did not have time for trading rule review & study in July as I was very busy at work and other life. Need to improve my Delta adjustment values in various scenarios as explained in a prior post.

  • Action during uncertainty
Used the Greeks and P&L chart to determine trades and adjustments, but need improvements at proper amount of Delta adjustments.
  • Risk Comfort ability/Adverse damage impact
There were bigger losses than I had expected in July. I seemed to be able to withhold it. The adverse damage impact remains to be seen.
  • Trade anxiety
As usual, there was no impulsive trading for the period.
  • Winning Altitude Development
I did not work on this one in this period.

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
I spent time for mostly non-trading related activities.

Trades and Market Replay
  • Market Forecast
The following analysis in May also occurred in July:
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
Need to study the proper amount of Delta adjustment as soon as possible. I think this is big issue for me at the moment.

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
  • Study major losses since the starting of the blog and devise proper guidelines for the amount of Delta adjustment

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