w/e 11-3 post mortem, page-24

Good thread chook,

i noticed it this morning after being away all wknd, just caught up

personally don't set any targets, just happy with what the market makes available any given week, it's been a good trading period, i've also been fortunate to have only 1 losing week since September and have been pulled into the black with one big trade on a few occasions recently

i'm not sure of the best way to calculate profit, for instance, would you take out a wage, allow for tax, allow for profit on working capital or total available capital etc? I suppose just use whatever metrics make sense to you. My trading account sits around 75% cash most of the time overnight recently

The quickest calculation on yearly would be total turnover on tax return to generate a % profit on year before or after tax. My turnover was nearly $27m last year excluding cfds and smsf trades, so i only need a small percentage margin to generate a decent profit, for instance 0.5% average profit would have given $135,000 less brokerage costs. Consideration of brokerage costs needs to be taken into account, i think i clocked up $77k last year.

My record keeping is based on weekly results but is not an exact science. Some weekly results include mid term holds but i include them as they only make up a small percentage of overall trading profit, maybe 95% of wage is from daytrading although i do get caught with a few dogs in the daytrading account now and then which turn into longer holds (AOP, AVDOA, GBXOA, TDX, TTV) and can skew the true weekly performance when realised.

Last week i included a $10k loss on CYC in my weekly result although CYC was already down a fair bit before the week started.

The best weekly return on capital result imo would be the portfolio balance in my trading account (what it reads at close Friday to Friday, ie $400k close 4th March, $406k close 11th March as an example, weekly result 1.5% gain even though some of it has not been realised)

I've been concentrating more on getting larger av gains than av losses rather than hit rate as posted previously with amount of brokerage trades increasing.

old post below

period trades out for bkge success rate wl ratio

H12007 398 30 (7.5%) 68% 0.76
H22007 378 26 (7%) 71% 0.82
H12008 394 35 (9%) 63% 0.85
H22008 468 44 (9.5%) 62% 0.91
H12009 642 81 (12.5%) 62% 1.13
H22009 1121 180 (16%) 57% 1.75
H12010 1113 199 (18%) 52% 1.19
H22010 847 173 (20.5%) 53% 1.85

I updated my trading records today and added brokerage exits and wl ratio, i'm also thinking of working out return on capital after deducting a wage on top of dollar earnings.

columns are for 8 six month periods
total trades in each period
number and percentage of trades exited for bkge
percentage of successful trades in each period
wl ratio

Trades above are predominently daytrades and a few short term holds, they don't include long term trades or cfd trades.

wl ratio is calculated by dividing average dollar amount of winning trade by average dollar amount of losing trade in period. Brokerage is deducted from winning trades and added to losing trades.

example

say $500 for winning trades and $500 for losing trades and an average cost of $30 for brokerage turnaround

$500 - $30 = $470 average profitable trade
$500 + $30 = $530 average expense/loss

470/530 gives wl ratio of 0.89