Let me explain. I plot the bottom line of my statement almost daily. I use a moving average to tell me my equity growth is failing. When the equity plot falls below the moving average I STOP and change something, my system or market, etc.
Anyone else do this. If not how do you keep track of your trading equity. Just looking at the statement doesn’t tell me enough.
OK, Finish this sentence: I step aside of the market when …
interesting methodology, although a bit “actuarial” as i see it, or perhaps one designed by a good accountant.
not being an accountant though, i know throughout the day and therefore day by day and week by week how i am doing, needing nothing else but a sort of “mental average” per day to work from. I guess my “mental average” is similar in ways to your “moving average”, just not written down on paper.
i DONT step aside from the market, but if i find im trading some pair that appears to be in the “doldrums” i will switch to another more active pair to trade, thereby adding some “pep” to my “mental average”
mp
[I][B]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/B][/I]
I have an excel sheet that I enter my end of day account balance and any running P/L. It calculates my daily P/L.
It also calculates how many lots I can trade with my current equity as per my money managment rules. As equity goes up lots go up and vise versa.
I found by having it front of me like that I keep myself honest and don’t trade outside my MM rules.
I just update it at the end of each day.
I don’t step aside unless I know that I am breaking my setup rules.
Cheers