How can you take 50% accuracy and lose $200 bucks?
Easy, just override your systems target and lock in early profit.
The point of a system is to let the winners run and cap the losers at your stop point
fairly early. Then the winners on a 50% model should have a positive net expectancy which IS profitability. Discretionary traders will be outperformed by a mechanical trader 8/10+ times. Maybe not day in and day out, but long term things work out in favor of a non emotional trader. To trade on discretion means you are trading on interpretation which is emotion influenced if not emotion driven.
So I can either die a slow but sure death by trading emotions, which will kill my equity. Or the discretionary trader in me can die and that will lead me to profitability. From my tone you can tell which trader I want to die in me. :p
A few of the losses came from trading the pre-market and opening 10-15 minutes which I knew better but somehow got sucked in...won't happen again!
Some others were due to trading without pivot points and thus trying to go through the pivot instead of fading the pivot or using it as a profit taking point.
And DAMN the psyche is fragile at first!!! Due to this factor I missed many thousands of dollars in sound trade profit because my losses made me gunshy. :mad:
Prime example of WHY YOU LET WINNERS RUN!
This was todays trade. I had a mechanical exit, just saw weakness and some profit being at risk and pussed out. This means the next trade that goes against me eats into equity not profit money and gives me further drawdowns.