2020-05-10 Raffaele

Week 1 recap on 150K challenge step by step.

Reality check!

Will posts great result when trading his own account, he has a large risk to manage and he is humble enough to do it well; that alone it’s a great lesson to learn.

But we all know expectations in the challenge had to be lowered down, why? Because we have very limited risk to trade; it’s feasible of course, but options are limited.

I’m talking about the 150K challenge that Will is trading by our side, step by step, more info here.

Step by step.

Sometimes the market develops well from the open like on Monday day 1 and Tuesday, day 2 where I posted lovely results with minimum trading.

Some days like Wednesday the 6th it just doesn’t make much sense and you take a loss, and stick with it, as I did; in my humble opinion the proof that Wednesday price action didn’t make sense is in the fact that by opening time Thursday price was exactly back to the same level, as if nothing ever happened; just bizarre; but not so unusual.

Valuable lessons.

I am truly grateful that Will has decided to take onboard the challenge, as we can see what a 20+ years desk veteran can teach us in a difficult situation, so here are my takes:

  1. if market isn’t behaving as you expect (or you are not reading it well, whatever) lower even further your risk! Halve your position size, or less! That’s why Will traded just 1 or 2 contracts these days, not more.
  2. Take fewer chances! just work steadily to recover the loss and move away from the trailing drawdown.
  3. the challenge it’s called the challenge because you need an exceptional performance! To win it you basically need the perfect run! And the perfect run can come only with the optimal risk plan, and a market that allows for your performance to become reality. So be aware of it! If market isn’t playing game, be super cautious, if levels and conditions are optimal, only then you can push a bit on your trading! If you don’t, it might still not be enough to ever win this thing and obtain funding.
  4. Keep in mind we need to pass the challenge twice, and a third time once funded to build profit and feel kind of safe.

Less than ideal, I know, but that’s how it is.

As you can see in the screenshot below Will has been real disciplined and with limited risk he scalped his way back to an even PnL.

Find out more about how Retailfade Trading Room works here.

Will is also posting every day his results in his blog, with video grabs of his trading room.

Weekly analysis by Will.

Sunday’s video, available for free to all, created by Will of Retailfade, gives clarity on what happened on the market and what this might mean for the coming week: not a forecast! Stop thinking in these terms.

After all even Warren Buffet lost 50B$ (with the B, that’s billions…as for thousands of millions!!!!)  in the first quarter of 2020 so…who are we to believe we can forecast anything..on this note: how can S&P be close to 3000 again? A pandemic is ongoing beep beep beeeep…sorry I lost it for a moment there..

Be careful everyone!! Study hard, get prepared for an uncertain future.

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