This site will be here to document my journey to digging myself out of the hole I’ve put myself in over the past 3 weeks. Can’t believe I’ve managed to put myself in this position in such a short period of time.
This is the start of the turnaround.
Step 1:
Stick to afternoon strategy. From my past 2 years of data, I can confidently say that the 2 products I trade will be able to bring in 30k/quarter.
Once I get back to even, I will withdraw 15k/quarter to pay for my lifestyle.
Anything extra will get added into my trading account in order to grow it at a quicker pace.
Step 2:
The morning is where I have punished myself repeatedly for the past 4 years trying and consistently failing to find a successful strategy that suits my personality and to follow it without fail. In order to change that, I need to create a very clear, rigid strategy that covers all the bases so I don’t have to think while in the trade. Self sabotage has lost me more money than I care to think about.
My solution to this problem is to trade higher time frames. This way I can have more time to make an exact plan for each trade. I will use an ATR based stop, have a target based on past levels and only then will I find an entry that will give me a 2:1 or greater Risk:Reward ratio. If price doesn’t come to my entry, I WON’T TAKE THE TRADE.
I accept that missing many trades is part of the game.
I base how much to risk on a trade on a fixed percentage of my portfolio, quoted as R.
2% of my portfolio is 1R.
If I lose 10R, I will cut my size by 25% until I get back to even.
This will have a twofold effect on me. I will be very careful, patient and picky with the trades I take, knowing I’m on a tight leash. As well, it will make me avoid going through large drawdowns, even if it means taking a longer time to get back to highs of the account.
Trader's Journey 