Steve – Weekly Journal

[Anonymous]

Hi All,

Almost completed the mentorship and have decided to trade the WTT on the Russell 3000. Journal is to track progress and keep me accountable.

Entered first basked of orders last weekend on a reduced trading account, if performance mirrors the actual backtest reports after a 3 month period then will increase account size. Some performance metrics below:

Backtest date: 02.01.2004 to 01.10.2019
Annual Return %: 20.99%
Risk Adjusted Return %: 25.78%
Max System % Drawdown: -16.09%
CAR/MaxDD: 1.3
Recovery Factor: 7.93
Profit Factor: 3.21
Risk Reward Ratio: 0.63

To prevent survivorship bias, I’m using an ATR filter to rank the opportunities. Results are strong over the 15 year sample period so keen to get going.

Great to be a part of this community and thanks to NickCraig for their support and guidance the last few months.

Steve

[Nick Radge]

Looks good Steve. You’ve done very well and I look forward to seeing how it develops over the coming few years.

[Anonymous]

Thanks Nick much appreciated. Mentor course has helped me a lot. Finding a system to suit my personality and current responsibilities though it sounds straightforward has been a really important item for me. Has certainly helped check my ego at the door.

Look forward to following the strategy and taking more control of my finances.

Cheers,

Steve

[MichaelRodwell]

Nice work Steve!

I totally agree about finding a system to suit your personality and responsibilities. Sometimes I see all of the short terms systems the guys on here are running and get excited to do the same but right now it’s only going to end in pain while handling other responsibilities.

Why do you think you landed on a WTT variant?

[Anonymous]

Thanks Michael, much appreciated. I hear exactly what you’re saying about the short term systems. Could I commit to entering the trades every day for multiple years? If I’m honest no then of course the results will deviate straight away. Happy with what I have so will try and stick to the system.

Regarding the WTT, I spent a lot of time looking at systems, listening to podcasts and simply can’t do better than what the WTT offers in terms of time and performance. It’s simple and I understand it which gives me confidence to trade the platform. I’m very time poor and I think listening to podcasts by the likes of PJ Sutherland and Rob Carver gave me a big reality check. From that I mean I have a fraction of the time they do to develop and test their ideas and certainly not the level of intelligenceexperience trading the markets. Ditto what Nick does, he’s a Brooks Koepka and I’m an amateur so no point trying to compete. I’m hoping this realisation will help remove me from the beginners cycle of which I was a member for many years. And I knew about the beginners cycle from Nick a decade ago!

I’m very impressed with the level of knowledge here too, some very good systems developed and again I don’t have the drive to develop what you have with your momentum system so will stick with the WTT and see how I go. Its a very interesting question though!

Hope that makes sense and thanks for reaching out.

[MichaelRodwell]

Thanks Steve! Totally makes sense. Good luck with the system and looking forward to seeing how it goes!

[Anonymous]

Thanks Michael much appreciated. Following how well things go for you too!

[Anonymous]

System has been trading for two months now. Results below:

Dec 2019: + 4.5%
Jan 2020: – 8%

Portfolio is 100% invested. in the 15 years backtest the result in Jan is the 4th worst monthly return but a drawdown is always inevitable when starting out I guess

Till next month

[LEONARDZIR]

What systems are you trading?

[MichaelRodwell]

My first month was -8%

Worst in 15 years.

Now +18% (Intra month). Probably helped me getting a slap in the face to start things off.

Good luck!

[TimothyStrickland]

Steven, After I finished building my systems they immediately went into drawdown. In fact, my mean reversion system went into the worst drawdown the system had ever experienced in its testing. That was over a year ago and it was tough for me. Now, I’ve made all that money back and then some. My mean reversion system is almost out of drawdown and my momentum system is up around the order of 20-30%.

My best advice to you is what I received back then: Just trust Nick and the process. Even when it feels like something might have gone wrong. Let Nick look at your system, follow his suggestions and follow what’s in the course and you’ll be fine.

There is a great book I am reading and I think everyone should. Its called “Pragmatic Thinking and Learning”, it walks you how we learn and how to learn faster.

When we started this journey we are a “novice”, meaning we don’t even know what we don’t know. We need a recipe to have a chance for success. Nick and some of the other guys here are an expert meaning a recipe would just slow them down, they can see things in a system that we can’t yet. It takes years to develop that, so ask a lot of questions.

[Anonymous]

Hi Len, thanks for the reply. Just trading the WTT on the Russell 3000, thats the only platform at the moment. I dont have time to trade a daily system at the moment but will see what happens in the future.

[Anonymous]

Ha inevitable huh. Thats a great result, hope it continues that way! I agree regarding receiving a hit to the account early on. First month was great but I know its going to be a bumpy ride. I’m glad I have the forum to keep me accountable as the journey continues.

Thanks again for checking in and apologies for the delayed response.

[Anonymous]

Hi Tim,

Good to hear from you. Glad to hear that you’re systems are doing well. I was prepared for this and I like to just sticking to a weekly system then checking the numbers at the month. Focus on the process rather than the result. I’ll certainly keep going and this is where Nick’s teachings have been invaluable, just wish I’d have listened 10 years earlier! The other thing is trying to keep quiet about things around friends and colleagues. I work in Investments (At an Ops level) and all I hear is coronavirus is going to cause a depression, economy is slowing down etc so its good knowing the systems has been stress tested against the GFC, Debt Crisis etc. So I focus out the noise and concentrate on following the system.

I’ll certainly check out the book, could help me in other facets of my life.

Thanks again for checking in and I’ll continue to post my progress.

Steve

[Anonymous]

Another interesting month where I’m down -10.4%. I’ve now breached my max drawdown but clearly these are unprecedented times. Index filter is now red and I’ve close 11 of my open positions. Let’s see what happens next month.

Good luck everyone.

[Author]

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