Thoughts on the portfolio.
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During the past year, I used a practically risk-free strategy, traded in shares, avoided speculative instruments, diversified, and had a profitability, several times faster than the interest on the bank deposit. It would seem that, living, yes rejoice. But as Salvador Dali said, `` don't be afraid of perfection ''. Outstanding Achievements of Colleagues in the Shop, within the OLCHI competition, who did so much in a month, how much am I in a year, gave me a complex of low efficiency, and prompted to look for new ways. I decided to try futures.
From that moment the portfolio 'confidently" balances in the area of zero values. Here are some thoughts and conclusions, what caused.
1. New tool. The nature of the RTS index futures is peculiar. I have tried stock futures as well. Everything went very well for them., but there is less liquidity, they are less technical, there are very sharp emissions up or down, so I decided to stay at RI. To understand the character, it took two or three weeks, with all the attendant.
2. Other timeframes. On promotions, I usually don't watch everything, which is less than half an hour. On futures, thanks to large leverage and low commission, there is a temptation to trade 5-minute and even 1-minute timeframes. Having tried, and killing enough nerves and time for it, has concluded, what RI, best to trade, focusing on hourly charts, holding a position for a period 1-3 days. Anything smaller, serves as a guide to clarify entry points, intermediate profit taking and top-ups, in the direction of the main movement.
3. Comfortable position. Increasing potential profit, we automatically increase risks. Drawdown by the same percentage, within the trading system, when trading with and without leverage has a completely different psychological effect. Trading stocks, drawdown in 1% taken quite calmly, using volume, five times larger, on the futures, the hand reaches out to close a losing position, a few moments before, how will the price go your way.
4. Feet, averaging, size. I lost the most money, flying out on foot, or closing a losing position just before the reversal. Almost everything then went into a plus. Somewhere in the blogs, recently saw a very good comparison, what stop, in fact, is a non-refundable rate. Market – this is not a casino, here you can play according to other principles. Politics, in my opinion, should be next – or enter on a clear signal, having very short feet, or, if you enter from levels, borders, approximate zone, have a distant stop, in case of force majeure, determined by an acceptable percentage of losses. I chose deals for myself, with a relatively small volume, and the possibility of averaging a couple of times. Important, so that a series of losses does not affect the position size, otherwise it will be much more difficult to recover.