Short Term Trading Week Starting: 18 Jan, page-102

Added FPH at the open price this morning. It gapped up above the strategy entry price so as per trade management rules I bought at the open price, despite being quite a bit higher, but position size adjusted accordingly to maintain the required trade risk budget:



Cheers, Sharks

PS: FPH has already dropped a bit since the open. I could have waited to see if I could get a better entry than the open price, but I have found I am a pretty hopeless discretionary trader, so I stick with execution of my strategy. It doesn't particularly concern me whether this trade ends in profit or not, my focus is that over time the strategy's actual performance remains consistent with the historical backtest results. To that end, I also have a cut-off rule that if the actual performance breaks a key metric, namely the drawdown breaks 2x the max historical drawdown, then I stop trading the strategy. That means in total I risk in the case of this strategy 10% of $50K or $5K if it doesn't end up working. But I have other strategies in the porftolio so the overall risk impact on the total portfolio is much smaller than 10%.