There were no trades made in the month of August, mainly due to the holiday season and increased volatility. As explained in other posts, increased volatility makes it difficult to find sensible entry and exit levels or stop-loss levels.
The yearly result of the Greed and Fear model portfolio hasn't changed, now adding August with $0,00 result.
July trading was again slow. I missed a few entries, once only by 0,25 points, but that's how it is. Trading is not about what 'could-have-been' or 'if-only-I-had-done-so-and-so'. Only the actual trades with real results is the only thing that matters.
So, in the end, there were two trades. One trade was up quite big initially, but then the market took it back and my stop loss was hit. This left only a small profit. The other was solid and closed at the end of the week. Closing into the weekend is like a safety measure, anything can happen that could strongly move the markets on the open on Monday. It's also good for mental rest, not worrying about how the markets may react after the weekend.
All in all, the net trading result for July was $1.275,50. The yearly result of the Greed and Fear model portfolio shows all the monthly latest results.
No trades were made in the month of June. After the low of early June, the neural network had a hard time making sense of market behavior at the time. I wanted to wait for it to pick up and get in tune, but it never really did.
So instead, time was spent on further development and as a result, some progress was made which looks promising for production use. Let's see how that works out in July.
Of course, the yearly result of the Greed and Fear model portfolio hasn't changed.
The first losing month of this year is now a fact. In total 4 trades were made, of which only one small winner. The three others were 'normal' losses, and thanks to having our stop losses in place, those losses did not completely destroy the model portfolio.
This month too shows that it is not necessary to execute many trades in order to be profitable. Just one trade for the month of April, only one(!) I should add though that 3 limit orders were missed before number 4 was an accurate hit and profitable. The position ran 4 days, which is above average for my trading.
Still, it should be better to make slightly more trades so that trading results more accurately reflect the neural network's performance. In other words, the last couple of winners could just be lucky shots. At some point, the losing trades will return and then it will be necessary to keep trading in order to align with the long term statistics.
So in short, April brought us a net profit of $1169,00 trading only one S&P E-mini future contract. The performance of the Greed and Fear model portfolio for this year now stands at a net result of $5820,00.
All daily articles with regard to the short term market movement will go here.
This page will show all actions performed by the Greed And Fear TradeBot. The tradebot is still in development and it will take some time for this to be integrated into the website. The current idea is to have the Greed and Fear Tradebot post al its actions to the Twitter stream. Development is going very well, and things look very promising.