July 2006 Review
Today was my best month in terms of dollar profit, but not in terms of R:
In June I was up about 40R, but only about 18%. I pointed out that the problem I needed to work on was that my R was not as large as I wanted it to be. This month I was able to increase my average R value by about 20% (which was still only about 0.75% of my account). The result was more profit with less R.
In July I was also able to stop myself from overtrading by trading with only one monitor and from a coffee shop. This made it more difficult to trade, which resulted in more profits. The worst day I had was only down 1.5% compared to over 5% from June.
My win rate this month was higher than normal at 54%. 51% of my trades were shorts for 22.36R and 49% were longs for 15.9R.
August should be an interesting month as I plan to try out a system I call “compounding without compounding.” Basically, I am going to increase my R by 1% of the amount I profited in July (as I would if I were compounding), but I am going to take all of the profits out and put them in the bank. With a prop firm, I have plenty of leverage, so I don’t have to worry about not having enough buying power. The result is that my R value will be about 1.2-1.4% of my account.
The biggest problem I had by far for July was not letting my winners run. My goal for August is to continue to not overtrade and to let my winners run.
