Trading Update: July Performance Stats – The Ugly, The Bad, and The Good Part 4 of 4

good-bad-ugly

 

After what seemed like uncountable days of being in the loop of getting stopped out of trades, analyzing what went wrong, making adjustments to my trading system and placing new trades, I experienced new illumination on how to fit the pieces of the puzzle together.

My newfound enlightenment helped me make the necessary adjustments to correctly capture the action/reaction moves I had been focusing on. I’ve said before that understanding market moves is all about correctly reading its nuances. The problem is these “nuanced” moves can be extremely difficult to detect even when you’ve managed to narrow down the area of focus. It’s at the point of being non intuitive so it comes down to being able to figure out the action/reaction by recognizing the repeating pattern that doesn’t “repeat” identically in terms of extent or frequency, but in behavior of sequence of events. Even using the best analytical methods, making the leap to finding a true solution may not be possible via just direct application/brute force in trying varied adjustments until you meet with success- this is what makes finding the holy grail of consistent trading so difficult.

My solution didn’t come from “brute force” analysis, but rather a mental subconscious to conscious leap in interpreting the data. The brain is a great computing device that can work on processing problems even when we are not consciously focused on them. This is why it’s recommended that you should break up concentrated study with less strenuous mental endeavors/pastimes. Blogging is one such activity for me. Taking breaks gives your mind a chance to regroup and process data. Since trading solutions are mostly non intuitive, you’re far more likely to find solutions from your subconscious mind processing data than a direct conscious approach because of built in “past data” contamination- we try to apply what we already know rather than learn and understand things from new perspectives.

Once I made the connection, I was able to employ a method of precise entries and targets with a level of consistency and accuracy not experienced before (The Good).

 

July 2015 Performance

July 2015 Perf

This is easily my best monthly return since my banner year in 2012, but a key difference is 2012 was by intuition and general approximation versus much more exacting methods used today.

Trading for the month seemed surreal in its consistent accuracy. I would place trade entries that my gut would scream as being absolutely wrong but would wind up matching the plan and being correct. My conscious mind did not trust the solution provided by my unconscious and it made me doubt trade after trade, and market drift prior to the move had me feel sure I would get stopped out time and time again, but successful results proved my conscious mind wrong.

 

July 2015 Performance Vs Indices

 

I’m happy to see that all my research efforts and time commitment into learning to trade are continuing to progress and show highly promising results. Once fully mastered, my methods should be able to be applied to any type of market, ranging or trending with the same consistent results.

 

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