Friday October 21.
And I thought previous week was difficult. We had a very tough Thursday, when most markets where opened and then closed with a loss. This was the first draw-down for me, when subscribers traded and lost real capital. I really felt it as if it was my own money. I know I warned about this happening many times, and yet every loss is very displeasing.
So I realized that there are two types of capital necessary while trading: financial and emotional. We understand how to evaluate financial capitalization and per trade risk. The key goal here is to have enough money to survive the expense and start trading next day as if nothing happen. This is the only way to capture trends when they come. Since it is not possible to predict when trends begin, the only strategy systematic trading offers it to take every signal. On the plus side, almost all expenses where under 2K which is what system aims at. Another plus came from Gold and Silver finally delivering a profit. This profit offset some of the expenses.
I realized that it is my responsibility to instill greater emotional confidence in subscribers. We have accumulated some emotional capital during profit period, when Basket Futures I
was making money. Over the weekend I put some effort forth to provide more. I published simulated trading results for the last seven month. Copy this link http://sites.google.com/site/basketportfolios
and paste to your web browser to get to the Basket Portfolios web site. You can not click on it, use "Select Text" and "Copy & Paste" instead. Site is simple and self explanatory. Follow instructions to get simulation trading reports. Analyzing these reports will give you a better understanding of system's dynamic and draw downs. I hope this will increase subscribers faith with Basket Futures I
ability to recover from expenses and in turn increase emotional capitalization.
Good Luck and Strong News