How to protect yourself
One trick that seems to work is to distract yourself with a completely different task when you feel ‘emotional pain’.
Distraction is a very useful trading tool. But there are times when the market moves and you can't be too distracted. So being distracted is not enough.
It is necessary to abstract mentally as well. The best way to do this is to stop thinking about trading in monetary terms and do it only as percentages or as points.
The curious thing is that, if the latter is achieved, when we revisit the balance of our account we find that it has improved much more than we thought and without the suffering of counting the money in each operation (Boris Schlossberg).
From December 17, 2018 to December 23, 2018
Momentum total trades per week: 2
Reversion total trades per week: 0
The year is coming to an end and it is time to recapitulate
It seems clear that, since the summer ended, the strategy has not been able to beat the market. However, the Darwin ends up positive again for the second year in a row.
A double-digit percentage has been reached at the end of the year, although far from the target of 20% per annum. However, that level was reached months ago and then lost at the end of the year.
Liquidity will be low in the near future, which may lead to unstable price movements. For this reason, operations will temporarily cease and several adjustments will finally be made to the system.
I would like to take this opportunity to wish you all a Merry Christmas and a Happy New Year.