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first loser of august - streak ended at 11

perfect streak ended.

11 straight winners in august.

hit my first loser monday.

monday 8/14 trade
#

SPX put spread

entry: sold $2.40 credit stop: -$3.60 (-150%) loss: -$360

vol detection gave green light. correlation check passed.

entered 10:30am.

position moved against me immediately.

hit stop at 11:15am.

why it lost
#

my analysis:

market gapped up at open. i waited until 10:30am per time filter.

but: gap already established new range.

my entry was fighting the gap up momentum.

should’ve skipped. hindsight 20/20.

what i did right:

  • followed stop loss (didn’t hope)
  • kept size at 1.25% risk
  • logged the trade for analysis

what i could improve:

  • add gap detection to filters
  • skip trades within 2 hours of significant gap (>1%)

mental game
#

expectation: 80% win rate = 1 loser every 5 trades

reality: 11 winners then 1 loser

still above expectation. variance is normal.

emotional reaction: zero tilt. just data.

this is what risk management is for.

august updated
#

goal: +$4,000 (beat in week 2)

current: +$3,510 (down from $3,870 after -$360 loss)

week 3 so far: -$360 (1 trade, 0 wins, 1 loss)

still way ahead for month.

account status
#

start august: $351,145 current aug 14: $354,655 gain: +$3,510 (+1.00%)

11-trade win streak stats
#

may-august win streaks:

  • longest: 11 trades (just ended)
  • average: 5.2 trades
  • median: 4 trades

this streak was statistical outlier.

expected it to end. it did. moving on.

what’s next
#

continuing same strategy.

adding gap detection filter.

expecting normal win rate (80%) rest of month.

comparison to learning period
#

jan-mar 2023 (learning):

  • losses tilted me
  • revenge traded
  • broke rules
  • lost $180k total

now (august 2023):

  • losses are data
  • follow rules
  • keep size consistent
  • up $135k since april

difference: discipline.

momentum strategy update
#

paper trading momentum for 2 weeks.

stats: 12 trades, 9 wins, 3 losses (75% win rate)

profit factor: 2.8

going live this week with 0.5% risk (half of mean reversion size).


3:20am tuesday. first august loser. 11-trade streak ended. -$360. discipline holding. still way ahead for month.

-AK

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