1/ In my 1-on-1 calls w/ traders I realized that execution tracking is the most slept on aspect of their trading routines.
Most outsource to different automated venues but I do believe you will always benefit more from manual tracking.
Most outsource to different automated venues but I do believe you will always benefit more from manual tracking.
2/ For example when programs aggregate trades into total position size, or win rate based on green or red PNL per ticker or even try to mimic R for you, it will never capture the full scope of each trade.
Sometimes you take a loss that is green pnl for example... Only YOU know.
Sometimes you take a loss that is green pnl for example... Only YOU know.
3/ I think it's absolutely critical to know exactly how you risked and what your outcome was both for the loss (-1R) or the wins in R.
Without that knowledge you're essentially blind to POWERFUL trading concepts that both validate your strategy but also assure you of your path.
Without that knowledge you're essentially blind to POWERFUL trading concepts that both validate your strategy but also assure you of your path.
4/ You can determine if you will be profitable, if you're managing risk properly or position sizing correctly... you'll know if you are getting enough bang for your buck with each trade you take and can forever measure your performance objectively at any level.
5/ My quick tip is to have an excel that you create as a 'format' sheet. One that is built to parse through the data you can copy and paste from your trading platform EOD. It should be duplicated each day to then paste in the data and help you sort the executions into full trades
6/ A full trade would be a fully flat position.
Then you sum the total and then divide it by your intended risk for the day (can just be a cell to reference).
That should provide you the most simplified measure of performance.
Then you sum the total and then divide it by your intended risk for the day (can just be a cell to reference).
That should provide you the most simplified measure of performance.
7/ You then check your trading executions (I screenshot the whole days chart) and then compare it literally trade by trade.
It gives you the ability to remember in vivid detail what you were experiencing and what you did.
It gives you the ability to remember in vivid detail what you were experiencing and what you did.
8/ It gives you the ability to go back weeks, months or years to know exactly how you executed and what level of performance you had or your system had on that market.
You can now backtest a different system against that and see if there is an improvement or not.
You can now backtest a different system against that and see if there is an improvement or not.
9/ There are about a dozen different things I can reiterate off the top of my head but I simply want to suggest something that I think has the most impact on your trading routine today.
Few notes about yada yada, "I was moving", "Still working", "Sick" etc, but execution > all.
Few notes about yada yada, "I was moving", "Still working", "Sick" etc, but execution > all.
10/ Overall you will find it very interesting how you can recall exactly how you were feeling and what you were thinking once you can put numbers and data to the executions you see on the charts.
A lot of people just let it go to automation and forget about it...
A lot of people just let it go to automation and forget about it...
11/ ...or just do a cursory overview of the chart and have no f*cking idea what they are aiming to achieve with it.
A lot of the time simply just forgetting how you were positioned, why and what mistakes you made... it blends in together.
Even w/ data it you can lose track.
A lot of the time simply just forgetting how you were positioned, why and what mistakes you made... it blends in together.
Even w/ data it you can lose track.
12/ So much of the fluff surrounded trading routines and review are literally writing an essay, providing excuses and rationalizations for what happened and a lazy attempt at knowing the truth.
While tracking execution can be meticulous if you do all of the above...
While tracking execution can be meticulous if you do all of the above...
13/13 ...without them you would be able to focus your time and energy much more efficiently.
Following this we would create solutions and systematize the handling of them.
A solution is only as good as it's implementation, you can think through the ways you would realize them.
Following this we would create solutions and systematize the handling of them.
A solution is only as good as it's implementation, you can think through the ways you would realize them.
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