Eeek!

Just for the heck of it, I decided to see how much profit, costs, commissions and net I did in 35 days of trading. It's pretty gross and sickening.

Profits: $105,122.50
Costs: $80,325.00 (76.4% of profits)
Commissions: 10,677.24 (10.2% of profits)

Net: $14,120.26 (13.4% of my profits)

At least it's still in the positive and though my equity curve is trending in the right direction, for all the money I made, man, to give back THAT much is really sickening.

If I average making $3K profits a day to really only take home $400, that's still pretty bad.

If I take out the 5 outlier days that are not typical for me: 13-Nov, 2-Dec, 12-Dec, 15-Dec, 2-Jan, the results are this:

Profits: 26,312.50
Costs: $11,877.50 (45% profits)
Commissions: $1,472.31 (6% profits)

Net: $12,952.69 (49% profits)

Though these are still not great #s, they are far better than the actual. So, this means man I better look at how to even better manage risk. I need to really review & analyze those outlier days because they can wipe out an account.

I do not want to overtrade, as that raises my commissions. Also, want to keep costs down, but usually my stops are out of the way, which usually means bigger costs. I gotta get this under control. I'd rather see a 20% or less of my profits going to costs, not including commissions. Overall, I'd like to see 70% or more of my net be my profits on average. Not sure if that's too high to strive for or not.

But, as I can see, it's a ways from where I am right now.
2 Responses
  1. Dan Says:

    Wondering what your Round trip Commission cost is? Seems like you really need to reduce it. Have you considered someone like Interactive Brokers @$4-5 Round trip on futures.
    They seem really fast on executions and their booktrader is a great tool for order entry/risk management.


  2. Doris Says:

    Hi Dan,

    Yes, I do need to reduce my commissions costs not because they are expensive, because they aren't, it's from overtrading.

    I have better commissions than Interactive Brokers for the quantity I trade, which usually isn't THAT much.

    I'm happy with my broker and their execution speed as well as how I enter the trades. I prefer entering my trades directly from my chart, and then fine tuning on my ladder.

    My broker's stuff interfaces with my charting software, which I totally love. It's more intuitive with how I trade and helps me manage my risk better.

    Bless you,
    Doris


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