Reviewing the performance of my trading system
The returns have been great, but I'm remaining grounded.
Is this the “holy grail” of trading?
Trading for years without knowing having a proper system can be detrimental to. our financial well being.
As someone who has been there done there, it’s reassuring to know that I’ve finally found a system that has been robustly backtested to be consistently profitable.
Never knew what I was missing until I stumbled upon this trading system called BTSM (short for beat the stock market)
3rd of October - the first day I started trading this system.
A system that has been proven to have an edge in the markets.
A system with only one losing year in 25 years (and even then, the losing year returned -1%).
October 2024 Trades (Closed)
Only 4 trades were made in the month of October 2024, with 3 of them closed within the same month.
The first trade actually ended up a small loser.
So important to manage that trade size, so that one loss doesn’t blow up our trading account.
Final result in Oct 2024: 2 wins, 1 loss.
Return: 2.45%
November 2024 Trades (Closed)
As compared to the previous month, more trades were entered in Nov 2024.
A total of 13 trades were opened, with 12 of them being closed within the same month.
Ironically, the first trade closed in November also resulted in a loss.
Final result in Nov 2024: 9 wins, 3 losses'
Return: 5.1%
Conclusion
Trading is simple, but not easy.
Emotions are the #1 obstacle to our success as a trader and investor.
We only begin to experience success when we remove these emotions.
It’s why I prefer systematic over discretionary trading.
Some plus points of trading this system:
No subjectivity involved - execute based on the entry and exit rules
Little monitoring required - just 5 to 10 minutes a day is sufficient
While recent results have been great, it’s important not to get too carried away. We’re currently in a huge bull cycle.
The ultimate test of this system will come when the bear market inevitably arrives.