Trading frequency

• 05/21/2018 at 9:39 PM #71035
  ChrisNYE

  Hi All,

  I have over 25 systems setup in auto trading and feel I may be overtrading. Systems are setup in both the 1 and 4 hour charts. I typically have 10-15 trades per day. Markets range from FX and indecies. Am I overtrading as I feel my emotions are running wild everytime a trade enters and I have more losses than profits. However profits are min 2 or 3 reward to risk.

  Your thoughts??

  Thank you

  

  ChrisNYE

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  05/21/2018 at 10:17 PM #71036
  Vonasi

  You are over-trading if all your strategies had double their biggest historical drawdown at the same time meant that your bank ran out of money in my opinion. It is called risk of ruin and however you calculate it you must calculate it to survive.

  Sounds like you are well diversified which is wonderful as long as your capital is sufficient to survive a really bad period. Unfortunately the easiest way to make money is to start with a lot of money.

  

  Vonasi

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  05/22/2018 at 9:00 AM #71075
  jebus89

  “overtrading” can mean 2 things:

  1. Emotional overtrading – This is where feelings and ur emotions run wild, because u feel like ur trading too much compared to what u want. U should trade less to make ur every day feel less stressfull. Probably gonna save u some money from system-jumping or just turning off good systems cus small drawdown and panic. (Feeling a little bit stress for each trade will pass as time goes, but if uve done this for a while and trading 10 systems gives u no stress but 25 gives u tons of stress then something is “off” and u should trade less)

  2.  financial overtrading – If all ur systems go into 5 loss in a row drawdown starting tomorrow, would ur account be busted? If so, then ur definitly overtrading.

  if u have 2 months that are VERY bad and ur systems are too correlated, then if its gonna bust ur account, u should trade less.

   

  “Overtrading” happens when ur stressed and or if your account can go bust because ur taking too many trades. Depending on ur total capital and how much ur capital moves in % pr day then u might wanna trade less. Check out whats ur most correlated algos and turn off the ones with the biggest drawdown is my tip.

  

  jebus89

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  05/22/2018 at 6:25 PM #71123
  jebus89

  also i might add that if u have created the systems urself, and have tested them in every way possibly, then you should feel confident in the systems and that they will be profitable in the long run. Small drawdowns come and go, and of course if all those 25 systems do 5 loss in a row, mostly at the same time, then ur gonna feel that drawdown!

  Im only running 8 at the time and when they all loose during the same week it feels kinda terrible but when i look at the markets i can clearly see the false signals and i understand that the systems failed because of a “legit fail”. Its ok to have failed trades and ur gonna feel them. If ur confident enough ull be able to keep running the systems tho. If ur confidence breaks then ur gonna start system jumping, turning them on and off just in time to catch every drawdown and miss every winning trade..

  

  jebus89

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  05/23/2018 at 3:57 AM #71133
  ChrisNYE

  Thank you for all your replies.

  I risk 1.5% of capital on every trade.

  I have adjusted all systems and now only trade on the 4 hour charts as I found I had multiple entries on the 1 hr charts that really reduced my account and my emotions. I know how 16 systems and feel more comfortable.

  

  ChrisNYE

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