Thursday, January 4, 2007

New Trading Year

Well it's a new trading year and as everyone is inclined to do every year, I am making some New Year's resolutions.

This year I intend to take the successes I've had swing trading the Forex currencies markets and increase the amount I'm trading. I just purchased Adaptrade's MSA which is a money management program that allows you to examine several different types of money management methods including fixed fractional, optimal f, kelly formula and others all with monte carlo analysis. What this means is that hopefully I will get more mileage out of my current systems.

Secondly, I have a very robust methodology for daytrading the eMini's and it works particularly well on the Russell. I am currently testing this system live (I've done all of the backtesting and paper testing one can reasonably do) and working the bugs out with 1 lot. This should take a couple of months. Once that is complete and the system gets the green light (probably with a few tweaks), then I will increase the amount I'm trading to about 5 lots which works out to be about 3.5% risk per trade.

Before any of this can happen, however, I need some additional internet service. Currently my faithful DSL has been dropping out at critical times. This has been a minor inconvience while testing these new systems, but could be a major problem when lot sizes are increased. Thus, I will be adding a cable modem connection to my trading system and a balancing router to ensure connectivity at all times.

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