OmniTrader Archives
Nirvana Trading Lab
Net Net Summary of trades, with Risk & exit info
6 replies, 2833 viewings
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OmniTrader Archives
Nirvana Trading Lab
Net Net Summary of trades, with Risk & exit info
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Last Activity 12/18/2014 12:40 PM 6 replies, 2833 viewings |
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Jim Dean Sage   Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA  User Profile |
The recap of the trades shown on the website is a great start, but is difficult to quickly evaluate, since the cost of trading and net gain loss is not shown, nor is the risk taken on each trade (as a percent). This is basic to risk management, which is a key to trading success. I suggest that you add two columns: one showing the "Risk" = Fixed loss delta vs entry as a percent (to compare to the net percent gain/loss from the trade), and another to show what kind of exit was taken ... Fxdloss, Brkeven, trailing profit, or discretionary. This helps give a feel for how effective the Trade Plan is. Also, I'd suggest you show the number of shares purchased, based on a small account size ($25k), and the commission cost, and the net gain/loss after those two things are factored in. This is a CONSERVATIVE view of the viability of what's going on ... which is not only a good training tool, but also is a great recap of how successful the methods you are teaching have been. If you want to take it one step further, duplicate those three columns (shares, commissions, net true PL) also for a medium sized account ($100k). For each day, a total should be provided at the bottom for all the columns. Also, I'd suggest a summary of those columns (including number of trades and Win/Loss ratio) for each WEEK. I hope you and others find this helpful. [Edited by Jim Dean on 2/10/2014 9:34 AM] | ||
| Ryan Olson Veteran  Posts: 213 Joined: 10/9/2006 Location: Austin User Profile |
Jim, Thanks for the suggestions here. I will see what we can implement moving forward for this. | ||
| Jim Dean Sage Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA User Profile |
Same summary stats for the mechanical RTX strategies for the standard RTX focus list. All Signalled trades taken and managed purely by the trade plan. Comparing those to the more discretionary Lab results will also be helpful to many. | ||
| Eric Severance Member Posts: 7 Joined: 1/30/2007 Location: Incline Village, NV User Profile |
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| Ryan Olson Veteran Posts: 213 Joined: 10/9/2006 Location: Austin User Profile |
We are discussing different ways to get the best information to you about the trades. We have tried to explain in the room about why we currently have the post the way we do. We all trade different size accounts. Let's look at my live trading account. I have about 28k in the account. If I take a trade on a stock that cost $400. I can only take say 36 shares of the stock while a co-host is on a paper account and takes 1000 shares of the same stock. The stock moves 10 cents. We could easily say look at this $100 trade we took. But in my account its only $3.60. So we decided to post the percent gain because that is the same across the board. | ||
| Jim Dean Sage Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA User Profile |
But it's pretty easy with a spreadsheet to extrapolate that info to other account sizes, if you have some kind of standard sizing rules (X% of account per trade, for instance). In fact we could do that ourselves, but that sort of defeats the purpose - unless you provide a very easy one-click Excel export, covering all the trades for the past week. What is really important that is missing is the RISK-delta being taken (entry vs initial stop) for each trade ... ideally present that as a percent of Close, so that it's apples to apples comparable to the percent gain/loss. From those two, lots of studies and analyses can be done. Also, it would be highly beneficial to see the type of exit taken ... which feature of the trading plan fired (fixed, breakeven, trailing), or discretionary. That will help folks eval the TP and possibly improve it. The main thing that including the account size related info, and the number of shares, is that COMMISSIONS can be evaluated. That can be a very significant factor if many small trades are being taken, such as for a $25k account. By seeing that in black and white, for a $25k account vs say a $100k or $250k account, your students can realistically evaluate how many of the trades that YOU take will be "healthy" for THEM to take. I hope everyone understands how vitally important this stuff is. Thanks! [Edited by Jim Dean on 2/13/2014 11:11 AM] | ||
| Ryan Olson Veteran Posts: 213 Joined: 10/9/2006 Location: Austin User Profile |
Thanks Jim, As always your insight and direction is most helpful. I am currently working on this to see if we can have a better record format for the lab. Thanks for your continued support. |
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