Before we get to August’s numbers, here is a short reminder of the results from July. The full report from July can be found here and you can get the last several months in a row vertically by clicking here and scrolling down.
Tradesight Pip Results for July 2015
Number of trades: 26
Number of losers: 14
Winning percentage: 53.8%
Worst losing streak: 4 in a row
Net pips: +175 pips
Reminder: Here are the rules.
1) Calls made in the calendar month count. In other words, a call made on August 31 that triggered the morning of September 1 is not part of September. Calls made on Thursday, September 30 that triggered between then and the morning of October 1 ARE part of September.
2) Trades that triggered before 8 pm EST / 5 pm PST (i.e. pre Asia) and NEVER gave you a chance to re-enter are NOT counted. Everything else is counted equally.
3) All trades are broken into two pieces, with the assumption that one half is sold at the first target and one half is sold at the final exit. These are then averaged. So if we made 40 pips on one half and 60 on the second, that’s a 50-pip winner. If we made 40 pips on one half, never adjusted our stop, and the second half stopped for the 25 pip loser, then that’s a 7 pip winner (15 divided by 2 is 7.5, and I rounded down).
4) Pure losers (trades that just stop out) are considered 25 pip losers. In some cases, this can be a few more or a few less, but it should average right in there, so instead of making it complicated, I count them as 25 pips.
5) Trade re-entries are valid if a trade stops except between 3 am EST and 9 am EST (when I’m sleeping). So in other words, even if you are awake in those hours and you could have re-entered, I’m only counting things that I would have done. This is important because otherwise the implication is that you need to be awake 24/6. Triggers that occur right on the Big Three news announcements each month don’t count as you shouldn’t have orders in that close at that time.
You can go through the reports and compare the breakdown that I give as each trade is reviewed.
Tradesight Pip Results for August 2015
Number of trades: 29
Number of losers: 18
Winning percentage: 37.9%
Worst losing streak: 6 in a row
Net pips: +135 pips
We are usually half size by the time August starts, and this year was no exception. We do this because August is typically the worst month of the year, with much of Europe on vacation. This August started out particularly bad, and the overall win ratio was very poor at only 37.9%, which will probably be the worst month of the year from that perspective. However, things got exciting when the markets got shaky and despite the early losses and the low win ratio, we ended up pulling out a positive month thanks to some huge winners in the back two weeks. In fact, average daily ranges (based on the 6 month trailing) didn’t change much for the month, which is very unusual for August. We will take it.