I received this email from an email trading buddy and wanted to know how you thought he was doing.
I hope you are doing great. I just wanted to remind you who I was so I attached the below email. I was wondering if I could run a question past you. It’s tough here at the home office to get some perspective on how I am doing. I think you are the perfect person to ask this question since you are immersed in the trading community and know so many that trade successfully and unsuccessfully.
I have been profitable every month since and including August of this year. Month to date December I am profitable as well. Before that I saw trickles of black but was always losing on balance and never had two consecutive profitable months until recently. I would greatly appreciate if you could shed some perspective on how I am doing based on my results. I am taking the money up every month so the only way to assess my results is based on percentage gains for a given month based on the account size traded that month. 2011 is my 4th year as a developing trader. For August through December (MTD) I sat down to trade 76 days and took 118 trades averaging 1.55 trades per day. My win ratio is 55.78% excluding scratches. My winners are 43% larger than my losers on average. I am in my winners 2.68:1 longer than my losers. My average risk per trade is 1.02% of the account size for a given month. The max risk I took on a trade was 1.65% of the account size. Nothing crazy risk wise. I always have a hard stop in the machine -always…and I never ever cancel it. For the 4 months August through November (2011), I have an average gain of 2.32% of the account total for that month. (6.7% the best/August -3.3% worst/September)
Obviously these gains annualized would produce a 27.84% gain. These percentage gain figures exclude December’s results as the month is not over yet. MTD December I am up 1.24%. In December I am trading a $40,000 account. I am in a position to take my account up to $200,000 and plan to do so if I could sustain this profitability. What do you think? How am I doing?? Thx a million for your response. I really appreciate it. How’s Dr. Steenbarger doing?
How is this trader doing?
One Good Trade