With September in the rear view window, it’s time to do that beloved trading task of quarterly performance review. Or in my case, not so beloved with the third quarter being one of the roughest for me yet.
As always, I’ll start off with the raw trade stats. Here it goes:
No. of Trade ideas: 12
Trades Triggered: 10
No. of Wins: 2
No. of Losses: 8
Trades ideas not Triggered: 2
Average gain per winning trade: +0.64%
Average loss per losing trade: -0.41%
Q3 Blog Performance: -1.89%
Compared to my second quarter performance, there were some positives to add a silver lining of a very dark cloud. My average gain per win was much higher than my average loss, and my net loss percentage was lower. While an improvement, it was due to a shift in strategy in that I went with more day trades because of the constantly shifting market sentiment and news events, and therefore smaller risk per trade (Avg. % risk per trade was 0.47% vs. 0.60% in Q2). My win rate was much lower, and going back through my trading journal, a lot of that was due to fresh news/events quickly turning the markets (like a mid-quarter USD/JPY trade) and me not reacting fast enough or taking advantage of new events.
Overall, Q3 just wasn’t good for me, and while I think the majority of my setups were valid, the main issue was not quickly adapting to the dynamic market environment. I wish I could say that the market was untradable, but the truth is that for personal reasons my focus just wasn’t there.
For the final quarter of 2013, I’m going to concentrate on focusing on the process, doing a bit more regular reflection and research, and changing up the blog format. Rather than putting up trade ideas, I’ll be blogging about what I’m watching at the beginning of the week, a mid-week update and an end of week review. I’ll also post any real-time updates or observations on my Twitter and Facebook page. The previous format and process was a bit distracting and limiting to how I really want to trade.
So, that’s my reflection on Q3 2013. Only 3 more months left in the year–let’s lock it down and close out strong! Good luck everyone and thanks for reading my blog!