Happy New Year to all of you from
beginners to the top of the most experienced fellow traders! I wish you in 2012
year to gain the success and the knowledge you never gained before and to use
it for good and fair causes!



 In this series of articles I will show you
some aspects of my live trading activity. I will try to extract the most
important part of the rules that I use in my real trading in details that will
give you the confidence and the instrument for your personal success in the
career as a trader.



Firstly I will explain in more
details the basics of my trading statistics diary. That is the only most
important component of my trading strategy and now you will see why! I have a
track record of every trade I made during my journey as a trader. I do that not
for a reason to remember my good or bad days, but for one simple reason – to be
able to process statistically all my trading history and to evaluate all the
factors which affect it. Only with a detailed statement I am able to calculate
the parameters of my trading and to check am I doing it better or worst as
compared to previous period.



For every single trade I put in my
worksheet I note the parameters explained below:



 



1.      The Start Time of the trade



2.      The End Time of the trade



3.      The Duration of the trade in minutes



4.      The Symbol of the traded instrument



5.      The Action (buy or sell)



6.      The Units traded



7.      The final stop loss or take profit
of the trade, independently is it activated or not



8.      The Open Price for the trade



9.      The Close Price for the trade



10.  The current spread during  that trade



11.  The number of pips I gain or lose in
that trade



12.  The profit/loss of the trade in EUR



13.  The percentage change of the balance
of my account on that trade



14.  The balance of the account in EUR
after that trade



 



This information is sufficient for
all the next evaluation of my trading
statistics. From it I calculate my
weekly statistics:



 



1.      Percentage gain/loss for the week



2.      Pips gain/loss for the week



3.      Maximum drawdown for the week (the
ratio between the account balance when it is in a minimum as compared to its
value before the drawdown in percentage)



4.      Average leverage for all the trades
in the week



5.      Total volume recalculated in EUR



6.      The Spread Cost in Pips (total
spread paid for all the trades)



7.      The Spread Cost in EUR or percentage
of the balance in the beginning of the week



8.      Percentage of the wining trades



9.      Percentage of the losing trades



10.  Average win (in pips and in EUR)



11.  Average loss (in pips and in EUR)



12.  The win on the best trade (in pips
and in EUR)



13.  The lose on the worst trade (in pips
and in EUR)



14.  Average trade duration in minutes



15.  The Profit factor (the ratio of
gross profit – sum of all the wining trades and the gross loss – sum of all the
losing trades)\



 



Except this I put my
balance after every single trading day as a percentage of its initial value (in
a given month) on a chart, together with the trading volume for that day. After
calculating all of this data for the weekly stats I put it on a chart week by
week and from the trends or spikes from the average values I could examine if
there is something wrong and where I am as compared to the previous month or
year. For example if I have small average profit on wining trades, but the same
average loss on losing trades that gives me a point that I have something wrong
with my profit taking. If I have bad results in days and weeks with above
average volume, that is a point for overtrading and I will decrease my activity
in the next period.



In the next several articles
I will explain some other details of my trading activity and some small tips
that have a tremendous impact on my performance!

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