Kates Journal

[Nick Radge]

Yes, we’re aware of the issue.

[KateMoloney]

ASX Momentum -4.06% … was sitting sitting at 3% profit, then gap down in the market this morning turned that into a loss. Murphys law that it happens on the day we sell.
Growth Portfolio 0.13%

US Momentum -4.87%**
Trade Long Term -4.73%** Not sure these figures are correct, errors in spreadsheet to fix

Day Trade TB -11.97% Current DD is 15%. Most of the drawdown was due to a one day drop of 15%. This was on the old system, which is now no longer traded.
Day Trade WP -1.38%  Intra month drawdown was was quite a bit higher … around 6-7%, but managed to pull its way out in last week. Current DD is 25%

The grind continues but happy to see systems are performing within the back tested parameters.
 

[KateMoloney]

We hold a small portfolio of shares with the help of the broker. I am thinking of scrapping this broker by the end of the year/next year as commissions are expensive and there is no real strategy other than buy, hold and pray. It has made money overall, mainly because we bought during the covid dip.

The broker insisted that systematic trading was “risky”, yet our AUD portfolio with this broker dropped 22% last month (YTD the drawdown is worse). One of the shares we bought on his recommendation, which he described as “one of the best buys I’ve seen in my 30 year career” dropped 43% 6 weeks after we purchased it.

I was going to post some pictures of the some calls me made about the bottom of the market and how it tanked, or how I asked him to hold off buying a share for a few weeks, he got FOMO (maybe for commissions) and bought it … and then that share tanked 25% in the following 2 weeks.

Whilst its been a bit tough trading in this market, the systematic trading has emotionally been way easier to manage VS the fundamental holds.

[Nick Radge]

Quote:

The broker insisted that systematic trading was “risky”, yet our AUD portfolio with this broker dropped 22% last month (YTD the drawdown is worse). One of the shares we bought on his recommendation, which he described as “one of the best buys I’ve seen in my 30 year career” dropped 43% 6 weeks after we purchased it.

I just love these stories…

[KateMoloney]

Our bank balance doesn’t like those stories …. 

Overall net worth is down 3% in the last month. 50% of that is attributable to the brokers strategies – and we only have 7% of our net worth invested with him!
The rest of the loss was 50% attributable to those “risky”  systematic strategies and 50% due to surgery costs … and we have the majority of our wealth invested into systematic trading strategies. 

Think Mr broker needs to redefine what risk is 
 

[JulianCohen]

Risk to your broker is you finding out he doesn’t know diddly….

Time for the hammer to fall!

[KateMoloney]

Plan is to wait till end of year (at least), let things recover a bit and find a new place for the money.

Don’t want all our wealth in systematic trading.
Want to buy some industrial real estate in the medium term, or, if hubby gets his way, another classic car.

[SladeChisholm]

+1 for the classic car

Nobody takes better care of your money than you do!
 

[KateMoloney]

Julian Cohen post=13027 userid=5314 wrote:

I suggest Nick as he is our revered leader…the Gods will appreciate our sacrifice more if we throw him in
 

The trading gods are clearly angry we did not sacrifice our revered leader ……

The last two trading sessions were a warning ….

[JulianCohen]

For me it was pretty much all week. 5 down days in a row. I haven’t had that for a year or so

[KateMoloney]

Julian Cohen post=13082 userid=5314 wrote:

For me it was pretty much all week. 5 down days in a row. I haven’t had that for a year or so

That is interesting Julian …

In an 18 day period I only had 3 losing days, except the losses were a much higher % than the profits.

The last 2 trading days -4.05% and -2.03% put the account back to where it was on the 15th of May. This financial year will likely post an over all loss on all trading strategies … unless there is some miracle by June 30. Last financial year was a loss as well. 

There is time in the market and then there is timing (when you start).

Can see why a lot of new traders get discouraged and give up.

[JulianCohen]

Here’s my May and June…last few days are steady losses but always (so far) small in percentage terms…death by a thousand cuts in stand of executioner’s axe

Sorry I wanted to post an image but I can’t seem to do it for some reason

[KateMoloney]

Julian Cohen post=13086 userid=5314 wrote:

Here’s my May and June…last few days are steady losses but always (so far) small in percentage terms…death by a thousand cuts in stand of executioner’s axe

Sorry I wanted to post an image but I can’t seem to do it for some reason

 

Been re-listening to Morgan Housel, the author of psychology of money. It has been great for my psychology in this current environment.

If I had pulled profits in a year or two prior to this market, I don’t think I would be as bothered by the current market. But because I’ve suffered an over all loss after 20+ months of trading, I’ve had to believe in a process that I haven’t had a positive result from, if that makes sense?

I’m having to reframe what success is, instead of success being a profit, success in this market is managing risk and protecting the portfolio from extensive drawdowns.

PS – can’t wait to see your picture. Is your trading account similar to this clip?

[video]https://www.youtube.com/watch?v=Z0HUfXey1SY[/video]

 

[KateMoloney]

Day Trade system is now pushing its limits.

Todays plan is to exercise and then come back and look at the system.

I can either;

1) stop trading for a bit
2) trade at a reduced account size
3) look under the hood of the systems to help me gain some certainty

Leaning towards option 3. But we will see. Got surgery tomorrow and it could be a major one depending on surgeons plan. My health takes priority.

[TrentRothall]

Kate M post=13094 userid=5397 wrote:

 Got surgery tomorrow and it could be a major one depending on surgeons plan. My health takes priority.

 

Good luck with the Op! 

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