October Trading Results: London Edition

October trading results are in with Congressive Trading System!  We have been in London for roughly 2 months attending various conferences and are currently getting ready for our day trading retreat in the next week.  The October results have been tallied up and I plan on talking about the massive increase in volatility that was caused by last weeks presidential election.

The October results were extremely interesting in that it was the highest win ratio of the year at nearly 87% and the 2nd lowest winning average per day at roughly 1.5 pts per day.  The volume and volatility increased towards the end of the month but as you can see with the numbers below it didn’t help the results.

We have started to keep track of both the beginner and the intermediate results to give you an idea of what is possible.  Our approach is to read and understand the market instead of just looking at a checklist for trades with indicators.

Trafalgar Square in London

The focus is to be able to adapt to the ever changing market dynamic and be able to extract a profit out of the 245 trading days in a year.  It isn’t about making a million dollars every day;

Its about trying to be consistent each and every day

Learning how to understand how the market works is hard enough as it is, it gets even harder when traders are using day trading software and rules based systems that aren’t able to adapt to low volume & high volume situations.

Even with record low volume in September, we were still able to consistently churn out profit everyday throughout the month (without risk management).

Since the September results were the worst of the year I was curious to find what the results would be with risk management.  We started to keep track of what we call intermediate results which actually includes risk management.  The beginner results, which are available for everyone to see publicly, was initially created by myself in order to ensure that I could still make money day trading while I was teaching classes.

The concept was to only worry about putting in the order and allowing the trades to work out themselves by either hitting a set target or a set stop.  What this transformed into was a great way to teach traders to learn discipline and actually learn the intricacies of market movement without worrying about making money.

Whenever anyone asks how much money you can make with the Emini S&P 500 I always say an average of roughly 2 pts a day.

This is what a beginner could make without any risk management and without maximizing profit on any trades.  When we start to  minimize risk the results jump to over double what a beginner could make.  Just imagine when we go from intermediate to advanced and then pro.

When traders start to learn what we call reward management, the possibilities are really endless.  The concept is that traders shouldn’t focus on Risk vs Reward, the age old checklist requirement system that traders have used for years.  What traders should really focus on is momentum.

In other words, most traders look for Risk vs Reward ratios above 50%.  When we are able to win more trades that we lose the odds are always in our favor.  We have found that by focusing on understanding how the market works instead of indicators and rules there is a complete set of trades that add a huge number to our bottom line.

That is the idea behind the beginner results that you see above.  Once a trader becomes proficient with the Congressive trading strategy the most important thing is to learn when to minimize risk (intermediate results)

Its more important to not to lose money than it is to make money

I’m sure that you have heard the catch phrase its easier to destroy something than it is to create it.  The same thing applies to the market, its much easier to lose money than it is to make it. That is the reason why we focus on not losing money first and then maximizing our reward.

 I haven’t done a year to date post in regards to the results but now that we are looking at both the beginner & intermediate results the numbers are very promising.  Here are what the yearly numbers look like so far:

• 1.95 pts per day
• 75% win ratio
• 40.93 total points per month

Click here to see the disclosure that the good ole boys at the CFTC require us to share with you about the results above.