OmniTrader Forum OmniTrader Forum
forums calendars search
today this week
 
register logon control panel Forum Rules
You are currently browsing as a guest.
You should logon to access more features
A Self-Moderated Community - ALL MEMBERS, PLEASE READ!
Vote for Members who contribute the most to your trading, and help us moderate content within the Forums.


  Current location        Thread information  
OmniTrader Archives
Nirvana Trading Lab
Net Net Summary of trades, with Risk & exit info
Last Activity 12/18/2014 12:40 PM
6 replies, 1531 viewings

Jump to page : 1
Now viewing page 1 [25 messages per page]
 
back reply
Printer friendly version

^ Top
Jim Dean

Idol
2000500100100100252525
Posts: 2896

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : Net Net Summary of trades, with Risk & exit info
Posted : 2/10/2014 9:31 AM
Post #30861

I've a suggestion for something that would help the website, and possibly that you might want to include mention of occasionally each day. This would be helpful for all "featured focus" plugin Trading Lab sessions in the future, not just RTX3.

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]

^ Top
Ryan Olson

Veteran
100100
Posts: 206

Joined: 10/9/2006
Location: Austin

User Profile
 
Subject : RE: Net Net Summary of trades, with Risk & exit in
Posted : 2/10/2014 9:56 AM
Post #30864 - In reply to #30861


Jim,

Thanks for the suggestions here. I will see what we can implement moving forward for this.


^ Top
Jim Dean

Idol
2000500100100100252525
Posts: 2896

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : RE: Net Net Summary of trades, with Risk & exit in
Posted : 2/10/2014 10:20 AM
Post #30865 - In reply to #30864

Another thot -

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.
^ Top
Eric Severance

Member

Posts: 6

Joined: 1/30/2007
Location: Incline Village, NV

User Profile
 
Subject : RE: Net Net Summary of trades, with Risk & exit in
Posted : 2/10/2014 5:43 PM
Post #30870 - In reply to #30861

I agree with Jim Dean's suggestions - need good, well documented tracking. Also because RTX-3 is (and is being marketed as) a RT Mechanical strategy I believe it will be all the more important to have a track record of mechanical (non-discretionary) derived results - both on the "standard" fixed list, and the "Scan" list posted each week.
^ Top
Ryan Olson

Veteran
100100
Posts: 206

Joined: 10/9/2006
Location: Austin

User Profile
 
Subject : RE: Net Net Summary of trades, with Risk & exit in
Posted : 2/13/2014 10:56 AM
Post #30925 - In reply to #30861


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.

^ Top
Jim Dean

Idol
2000500100100100252525
Posts: 2896

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : RE: Net Net Summary of trades, with Risk & exit in
Posted : 2/13/2014 11:08 AM
Post #30926 - In reply to #30925

That makes sense.

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]

^ Top
Ryan Olson

Veteran
100100
Posts: 206

Joined: 10/9/2006
Location: Austin

User Profile
 
Subject : RE: Net Net Summary of trades, with Risk & exit in
Posted : 2/18/2014 2:42 PM
Post #30976 - In reply to #30861


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.
Jump to page : 1
Now viewing page 1 [25 messages per page]
back reply

Legend    Action      Notification  
Administrator
Forum Moderator
Registered User
Unregistered User
E-Mail this thread to a friend
Toggle e-mail notification


Nirvana Systems
For any problems or issues please contact our Webmaster at webmaster@nirvsys.com.