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april wrap - down another 12k

april P&L: -$12,384 4-month total: -$60k

not improving fast enough.

the numbers
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April Month Review

Figure 1: Monthly and cumulative P&L Jan-Apr 2023. Trend is slightly improving but still deep red.

monthly breakdown:

  • january: -$22k (learning curve)
  • february: -$18k (overfitting issues)
  • march: -$8k (improving)
  • april: -$12k (regression)

thought i was improving in march. april proved me wrong.

what went right
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  • implemented new risk management (saved ~$8k in potential losses)
  • fixed backtest assumptions (now realistic)
  • automated greeks tracking
  • switched to polygon.io data
  • daily loss limit prevented blowup days

what went wrong
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  • still losing money overall
  • new risk rules limited losses but also limited learning
  • paper trading boring, went back live too early
  • assignment bug cost $5k
  • emotional discipline still shit

year-to-date: -15%
#

started with $400k currently at $340k burn rate: $15k/month average

at this rate: broke by november 2023

need to either:

  1. become profitable in next 2 months
  2. reduce position sizes even more (extend runway)
  3. get a real job (fuck that)

break-even goal for may
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not targeting profits yet. just want to not lose money.

break-even would be huge progress. means:

  • risk management working
  • strategies actually viable
  • can scale up slowly

lose another $15k in may? might be time to seriously reconsider this whole thing.

personal shit
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  • broke up with J (finally)
  • cleared out dad’s office
  • therapy helping i guess
  • still can’t sleep most nights
  • considered pausing trading entirely, didn’t

what i’m changing for may
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1. only trade 3 best strategies pausing everything else. too much complexity.

2. smaller positions cutting size in half. rather make $5k slowly than lose $15k quickly.

3. strict paper testing nothing goes live without 30 days paper trading first. no exceptions.

4. weekly reviews every friday: analyze week, document lessons, adjust if needed

the question nobody asks
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“why keep trading if you’re down $60k?”

because:

  • inheritance money specifically for this ($2M total, trading with $400k)
  • already invested 4 months, quitting now = admitting total failure
  • still believe algos can work if i unfuck my strategies
  • alternative is getting regular job and i’d rather eat glass

also: parents’ life insurance paying for this education feels weirdly appropriate. they believed in me doing something entrepreneurial. trading counts.

may prediction
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conservative: -$5k to +$2k realistic: -$10k pessimistic: -$20k

if may ends worse than -$15k, taking june completely off to rebuild from scratch.


11:45pm saturday. month-end reviews are depressing but necessary. may has to be better.

-AK

Related

first 90 days live - reality check
3 months into trading with real money and i’m down $40k. not what i expected but also exactly what i should’ve expected. paper trading for 3 years (2020-2022) gave me this false confidence that live trading would be similar. LMAO nope. completely different game when actual money is on the line.
down 8k this week
SPX shit the bed friday. took me with it. week P&L: -$8,142 total since jan: -$59k what happened # one of my short put spreads on SPX got assigned early. didn’t have a handler for that in my code. position sat open for 3 hours bleeding before i noticed.
march 2023: first month live trading results
first month done # march 15 - march 31 (2.5 weeks live) went from paper trading to real money. lost $180k in february learning. figured some shit out. went live march 15
week 3 performance: sharpe 2.1 actual vs 1.64 backtest
three weeks live = enough data for initial validation # march 15 - march 30 (15 trading days)