After the $659.00 loss on the IWM trade, which closed out September 29, I find it helps to review my actual trading history as well as reviewing the back tested records for the ETFs I use.
The Trading Record page documents all the trades I have made since starting this Blog, from 2014 to the present. Even after the September 29 loss, my percentage of winning trades is at 81.82%, still much better than my historical average of 74%.
The system worked well in 2014, in 2015 not so much. 2014 produced a $956 profit, which more than doubled the dividend income from the stocks I owned at that time. In 2014 82.4% of trades were profitable, I was only in a trade a total of 86 days. Largest winning trade $243, largest loss $126.
I track the performance of every ETF that I follow even if I did not trade that ETF.
Because I was in the IWM trade, I was unable to make trades in IEV, IGV, MDY, and SPY; which all generated trades while I was already in the IWM trade.
Three of these ETFs showed a profit; IEV 0.26 per share, IGV 1.45 per share, MDY 2.72 per share and SPY showed a loss of 9.40 per share.
QQQ also generated a trade and I was able to enter that trade the same day I closed out the IWM trade at a loss. QQQ produced a small profit of $65.00
The point is the system was working, it just did not provide a profit for IWM or SPY. The system did give a profit for IEV, IGV, MDY and QQQ.
With my small account I only trade one ETF at a time. It was just bad luck that IWM signaled and confirmed a trade first so that I was unable to trade the other ETFs that confirmed trades when I was already committed to the IWM trade.
This is where back testing keeping records of all trades the system generates, whether taken or not, will reinforce your faith in the system; especially after a big loss.
This system only works, over time, by consistently taking every trade that comes along. You never know which trade will be the big winner that makes this system work.