This one almost wiped out my account, but before you ask, "No, I did not have a brain explosion."
The increase in position size was authorised by my mentor and investor prior to execution. From now, position size will be 10% of total available funds (70k), rather than 10% of funds in the trading account (10k). So the 8k loss on this trade represents an 11.3% loss on total nominal capital ( or -113 bps on notional).
Unfortunately, the change in money management has compromised performance statistics. Percentage returns are now meaningless, but other metrics such as win/loss etc remain valid, so I'll continue to publish statements.
Psychologically, it's hard to see my stats and equity curve destroyed. Once a source of pride, they now evoke failure, despite the fact that my account would still be positive (+5%) had I maintained constant position size of 2.5%.
Frankly, I've lost momentum and am at risk of acting impulsively. I'm struggling to maintain discipline, not just with trading, but with all aspects of life. It's hard to stay strong in the absence of positive feedback, but I guess that's where real character is earned. Writing out my fears and frustrations should help. I always feel better after journalling a losing trade, it's cathartic. I'll also try to focus on the positives from the year, a period of unparallelled control for my trading.
As for the trade, well, it was valid, and I'd take it again. Entry at 79.40 was good. I waited patiently for a small time frame trend line break and IQM after the H1 gartley. Entered with an m5 bat and moved 50 pips into the money with zero drawdown, at which point 1/3rd was covered. It was at this point that I got the green light to go with additional size, so added to the short at average levels around 79.05. There were additional reasons to short, but the trade was stale, having already hit T1. Regardless of the entry level, I would have taken a loss on the trade. Not to my surprise we gapped open higher on Monday after positive Greek election results, and slippage on the re-open resulted in the total loss exceeding the -100 basis point limit (-113 bps).
Not the most illustrious of starts to my new position sizing, but I feel better after a grizzle...waaaa. Time now to look forward, work hard, and be positive. I can do this.
