Monday, September 13, 2010

Tweak and Improve Current Strategy ??

Trader Quest Where do I look for ideas to tweak and improve my current trading strategy?

Plot Course ~ You can set out to look at your market’s candlestick charts, price ladders, profiles, point and figures to find setups or new observations. That sounds like a lot of unfocused work. One smarter way is to review your trades setups each day, both the ones that  you actually traded and also the ones that you missed.

Ride Wave ~ One idea to consider is the use of digital recording of your trading screens to capture and zoom into the whole trading day just prior to, during and immediately after you trade. This could give you the ability to see how prices and quotes were moving, what a chart was indicating, or perhaps even recall what you were thinking at the moment. Sounds like a lot of painstaking work at the end of a long trading day you say, you're right, it is! Guess what, there are traders doing this work and variations on the theme and this is your competition. 

In a recent article in SFO magazine, Mike Bellafiore of SMB Capital stated "Technology has accelerated this business infinitely since I started, and it has transformed training for the trading stars of tomorrow. For example, today’s traders can videotape their daily trading and play back their work, just like a football team."

These type of traders work deliberately to remove glitches, hesitancy and doubt whenever possible. If you don't want to invest in video capture software, you can use a modified process with your trade journal or execution log from your trading platform to capture exact times. Most software can go down to a tick chart or even a one minute chart can be helpful. This method can work either for swing or position type traders by just lengthening the timeframes.
~ Keep Curious, Coach Mark

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