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looking ahead to june

may is wrapped. planning june now.

what i’m carrying forward
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strategies:

  • premium selling (working)
  • mean reversion v2 (needs more testing)
  • vol regime detection (deploying monday)

risk management:

  • 1.25% per trade
  • max 5 positions
  • correlation < 0.7
  • sector limits (40% max)

infrastructure:

  • async market data (working great)
  • correlation checking (saved $1.6k in may)
  • position manager (automated)

what i’m changing
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1. vol regime detection

goes live monday in paper mode.

will prevent trading during:

  • VIX > 35
  • 1-day VIX change > 15%
  • low vol (VIX < 15)

backtest shows +$1,700/year improvement.

2. higher trade frequency

may: 19 trades june target: 25-30 trades

been too conservative with entries.

need more setups while maintaining quality.

3. better stop management

current: -200% stop on credit spreads testing: -150% with trailing logic

tighter stops might reduce loss size without increasing stop frequency.

4. weekly performance reviews

new habit: every sunday review week’s trades.

what worked, what didn’t, what to change.

prevents drifting off course.

june goals
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primary goal: +$3,000 (+0.88%)

stretch goal: +$5,000 (+1.47%)

minimum acceptable: +$1,000 (+0.29%)

anything below +$1k = reassess everything.

metrics i’m tracking
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performance:

  • monthly P&L
  • sharpe ratio
  • max drawdown
  • win rate
  • avg win/loss ratio

execution:

  • trades per week
  • correlation rejections
  • vol regime blocks
  • slippage per trade

personal:

  • gym sessions per week
  • sleep hours per night
  • therapy attendance
  • code commits per week

risks to watch
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1. overconfidence

one profitable month doesn’t mean i’m good.

could be luck. need more data.

2. increasing position sizes too fast

tempting to scale up after winning month.

keeping sizes flat for june. reassess in july.

3. strategy drift

easy to tweak working strategies and break them.

resist urge to optimize profitable strategies.

4. relationship distractions

staying single for june. need focus.

code priorities for june
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1. vol regime detection (critical)

  • deploy monday
  • monitor all week
  • go live week 2 if working

2. trailing stop logic

  • test on historical trades
  • paper trade 2 weeks
  • deploy if improves win/loss ratio

3. order execution optimization

  • reduce latency <100ms
  • improve fill prices
  • add smart order routing

4. backtest improvements

  • add monte carlo validation
  • walk-forward testing
  • parameter sensitivity analysis

personal goals june
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trading:

  • 25-30 trades
  • maintain discipline
  • follow rules strictly

health:

  • gym 4x per week minimum
  • sleep 7+ hours per night
  • therapy every week

learning:

  • finish async order execution
  • study vol trading strategies
  • read 2 trading books

books on reading list
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  1. “Lively Hedging” by Taleb
  2. “Volatility Trading” by Sinclair

both on volatility strategies. relevant for my current focus.

what success looks like in june
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best case:

  • profitable every week
  • no major drawdowns
  • vol detection prevents losses
  • confidence builds

realistic case:

  • 3 of 4 weeks profitable
  • 1 losing week but small
  • net +$3k for month
  • strategies validated again

worst case:

  • multiple losing weeks
  • give back may gains
  • back to break-even or red
  • reassess everything

my prediction
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june will be +$2.5k to +$4k.

volatility is settling. market conditions improving.

strategies are working. risk management is solid.

should be able to build on may’s success.

mindset for june
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confident but cautious:

  • believe strategies work
  • but one month isn’t proof
  • need consistency over time

process over results:

  • follow rules
  • execute plan
  • results will follow

long-term thinking:

  • building sustainable system
  • not chasing quick wins
  • patience pays off

the plan
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week 1:

  • deploy vol detection
  • monitor carefully
  • aim for 6-8 trades

week 2:

  • validate vol detection working
  • increase frequency if confident
  • aim for 7-9 trades

week 3:

  • full production mode
  • all systems running
  • aim for 7-9 trades

week 4:

  • month-end push
  • capitalize on lessons learned
  • aim for 7-9 trades

total target: 27-35 trades

commitment
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june is about proving may wasn’t luck.

two profitable months in a row = trend.

trend = confidence to scale up.

let’s see if i can do it.


3:25am tuesday. may is done, june starts tomorrow. ready to prove this can work consistently.

-AK

Related

building volatility regime detection
need to stop trading when volatility spikes. building detection system. the problem # this week VIX spiked 18% in 2 days. my strategies got stopped out twice.
checking my backtests for overfitting
worried my strategies are overfit to historical data. spent today testing for it. been reading NexusFi backtesting threads about this exact problem. the problem # my backtests look great:
correlation risk - learned the hard way
lost $1,400 yesterday because i didn’t track correlation between my positions. dumb mistake. what happened # may 10, 2pm:
may day 1 - smaller position sizes
cut position sizes in half. only trading 3 strategies now. first day of may went… fine? +$180 on one trade. nothing else triggered. new risk rules # old position sizing: 2.5% risk per trade = $850 max loss (on $340k account)