April Review

At close of trade on 31 March, my account balance was $9,790.62.  At the close on the 30 April, the balance was $11,642.84, showing a profit for the month of $1,852.22 – an 18.92% return on capital.

Let’s examine the key metrics.

There were 21 trading days available in April, and I traded 15 times (71.43%). My target is 80%, so this figure is a bit low. However, there was one day missed because of a software glitch at IB, so I should have had 16 trades (76.19%) – not bad, given that I’ve been restricting myself to opportunities in the first 30 minutes.

9 out of the 15 trades were winners, so my winning percentage was 60%. That is good, especially as the trade on the day of the software glich was a winner, so the percentage would have been 10 out of 16 (62.5%). I can’t complain about this. In fact, I’ve probably been a bit lucky this month – my target is to get over 50%, and it is a tough metric to meet.

The average win was $374.87 and the average loss was $260.97, giving a "win to loss ratio" of 1.44 (target is >2). This reflects on my trade management, particularly the trade where I baled out early on a winner. However, the greatest impact was from the asymmetric effect

If you’ve followed the results daily, you will have noticed this process is not "fast". Fifteen trades in a month is hardly spectacular for day trading. Nevertheless, even with a disappointing sequence of three losses into the close of the month, I’m comfortably beating my goal of a monthly 10% return. If I can continue to do that, the account will grow quickly. 

Notice my capital has only been at risk for about ten hours in the whole month! That is roughly the time I have been in open trades. The rest of the time I’ve been sitting safely on the sidelines. This is a benefit of the day trading approach – not many trading styles keep you out of harm’s way to this extent.

All the weeks ending during the month were profitable, although this week is not looking promising (still one session to go). Psychologically, I like to go into weekends on a gain.

I need some feedback from readers about my posts. I’ve done daily posts, with screenshots, each day in April, because many commentators on the net never show real trading results. (It is much harder to do well in real trading than it is to show simulated results from backtesting.)

However, it is a time consuming process. So from now on I am planning to limit myself to weekly and monthly progress summaries.  I hope I’ve established your trust that this is a genuine live trading project, so the summaries will be all that are required. If you REALLY want me to keep up the daily posts, email me on support@12oclocktrades.com.

 

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