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Sunday, February 28, 2010

February Performance and review

With February behind our back, the performance on my trading was a bit disappointing. Not because of the numbers per se but due to my execution. I made too many errors on my trading this month and it cost me the difference of either being profitable or not.

On a mark-to-market basis, the account closed -3.2% for the month. I estimate my mistakes to have cost me around 10-15% which if I hadn't made them I would've end up deep in the green for the month. Mistakes were attributed to poor execution of my part, and one of them that cost me a loss of 3R (so the loss was 200% bigger than what I was willing to lose) was due to a price movement where it went well above my exit point, in which I forgot to put a stop in place.

Another mistakes were that at particular times on a few trades I got a bit biased. Especially in the currency market, where as all of you know I've been incredibly bullish for the dollar for quite sometime, so I underexposed myself on some trading signals just because they were against my bullish view of the dollar. Just because my system as telling me to go short dollar, because my bias was bullish I cut my risk to half, which is a mistake, since it was a decision based on my bias.

For this month, execution has to be key ! And later in the month we'll also have again a new shopping spree for our LMP portfolio. The portfolio is still beating the crap out of S&P, although as expected has been down as a whole since the peak of the market in January. We'll see how the month goes, and my bias tells me that in 4 weeks or so, we'll be a lot lower on the markets. This week should be the starting point of one severe downturn in my opinion. Indexes are at the brink of a new decline from the looks of it, which if confirmed, should take the S&P towards the 993-1000 points level.
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