The importance of keeping records

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Old Jul 25, 2011, 10:31pm   #1
Joined Jul 2010
The importance of keeping records

I'm very bad at recording winning/losing trades. I've started recently. I've pretty much narrowed my trading to daily pin bars, daily bullish/ bearish engulfing candles, and inside bars. My win rate has not been what I expected. And some of these seemingly good setups petered out. On review all of the trades that didn't work out well were counter trend using a 200sma as trend direction. So I have a new rule, only longs above the 200 sma, only shorts below.
Now I wish I had kept better records all along!
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Old Jul 25, 2011, 10:32pm   #2
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Re: The importance of keeping records

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Originally Posted by Rooster34 View Post
I'm very bad at recording winning/losing trades. I've started recently. I've pretty much narrowed my trading to daily pin bars, daily bullish/ bearish engulfing candles, and inside bars. My win rate has not been what I expected. And some of these seemingly good setups petered out. On review all of the trades that didn't work out well were counter trend using a 200sma as trend direction. So I have a new rule, only longs above the 200 sma, only shorts below.
Now I wish I had kept better records all along!
Keeping proper records is vital. Nuff said.
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Old Jul 25, 2011, 10:52pm   #3
 
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Re: The importance of keeping records

You'll be amazed what keeping proper records will do for you. It's one of the big steps in finding out what works/doesn't work for your trading style. In conjunction with a spreadsheet you'll have a very powerful tool. Eg. it enabled me to calculate an optimum stop to use based on volatility (ATR) so that no margin is wasted on an overly generous stop yet the stop is wide enough to stay in the trade - the results from the spreadsheet were quite a bit different from my arbitrary gut feeling and commonly recommended guru settings (they don't know how you trade do they?).
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Old Jul 25, 2011, 11:02pm   #4
Joined Nov 2008
Re: The importance of keeping records

Quote:
Originally Posted by Rooster34 View Post
I'm very bad at recording winning/losing trades. I've started recently. I've pretty much narrowed my trading to daily pin bars, daily bullish/ bearish engulfing candles, and inside bars. My win rate has not been what I expected. And some of these seemingly good setups petered out. On review all of the trades that didn't work out well were counter trend using a 200sma as trend direction. So I have a new rule, only longs above the 200 sma, only shorts below.
Now I wish I had kept better records all along!
A couple of things if I may..

Firstly you get records for free given you can access all your trades via your brokers or sb firms personalised account history, add notes to it..

Secondly, just a suggestion as to a small addition if you're keeping it that simple (and there's sfa wrong with that imho) only take a long if it's above the daily pivot heading towards R1, only take the short if it's below the pivot and heading towards S 1, Sometimes you can bag very good pips above the D and R1 as price is heading towards the 200 as opposed to waiting for it to cross etc.. vice versa for S1 etc..
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Old Jul 26, 2011, 12:02am   #5
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Re: The importance of keeping records

onest non lulz post:

Keeping trading records is only worhtwhile if you review them and instigate a feedback loop so you can learn form your success and mistakes. With that in mind, it is better to have high quality, low quantity information to hand. A series of 200 trades each with 50 variables is not condicuve to streamlining your trading strategy.

Trading without a hypothesis of how markets work, or what kind of behaviour you are trying to capitalise on, is foolhardy. Working on the assumption that you have established some ideas of what your trading approach is, I would suggest making a list of between 3 and 5 things that you can easily make a note of at any particular time you put on a trade. I personally believe it is advantageous to have a combination of simple true/false (or, say, A - E, but rule based) conditions with another line or two on the overall context of the action. The specifics of what you make a note of will be guided by your particular approach to trading.

Another thing I can suggest is making a note each and every time some specified condition happens, for say another 3 - 5 conditions, but do not take a trade off the back of them, just note their occurence.

Then, depending on your trade frequency, you can look over a) the trades you took and look for old patterns, and b) notes you made and look for new patterns.

Keeping a record for your trading is only worth it if you are going to review what you noticed / did, and act upon it to take yourself forward. So, it makes alot of sense only to keep records that are actually use-able.

jmho.

(some other stuff you can do in excel too, specially if on futures, like average time in winner vs average time in loser, or making good stop sizes or whatever, but this is more about "edge maximisation" rahter than "edge generation")
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Old Jul 26, 2011, 1:22am   #6
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Re: The importance of keeping records

Rooster34 started this thread So much stuff still to learn!
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Old Jul 26, 2011, 10:33am   #7
 
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Re: The importance of keeping records

Quote:
Originally Posted by Rooster34 View Post
I'm very bad at recording winning/losing trades. I've started recently. I've pretty much narrowed my trading to daily pin bars, daily bullish/ bearish engulfing candles, and inside bars. My win rate has not been what I expected. And some of these seemingly good setups petered out. On review all of the trades that didn't work out well were counter trend using a 200sma as trend direction. So I have a new rule, only longs above the 200 sma, only shorts below.
Now I wish I had kept better records all along!


Yes, keep records of your trades, write down your observations and revise them regularly.
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Old Jul 26, 2011, 1:58pm   #8
 
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Re: The importance of keeping records

I think that this is the most important aspect in the business field. Now the universities are offering
degrees in financial accounting. The record of the transaction is the most important aspect while you
manage your business on the behalf of this record. Don't neglect it.
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