Crisitunity

• 03/20/2020 at 9:48 AM #122668
  jebus89

  Edit my formatting is all weird, dont know why.

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  Urban dictionary defines “Crisitunity” as:

  Crisitunity: This is when a crisis and an opportunity come together to solve problems. (The word comes from Homer Simpson, from the The Simpsons TV show)

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  In all seriousness though, in times like these its very hard to follow your systematic rules. At least for me, such volatile, unpredictable and scary times like we are seeing now takes a toll on my trading account as well as my mental strength.

  Some of my systems that go long on positive momentum have actually made some small money, but more or less all of my mean reverting (in equity markets) have failed miserably lately.

  This has affected my mood, my temper and my inner motivation. I have had shit days where being sad about my trading was all i could do it felt like, but ive managed to turn this into something very useful the past week(s) and i thought i would share this with the rest of you, the hopes that i can inspire maybe 1 or 2 out there thats struggling.

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  This is not some sort of secret and many of you already think about things in this way. We need to look at the current conditions and view it as something more than just scary times. We are seeing data at extreme levels. We are seeing insane down-trends, forex going everywhere, gold up and down 5-10-15-20%! We are having the wildest down-momentum and volatility that we have seen in many many years! Opportunity is right in front of us if we just choose to see it.

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  This is the acid test for your systems that you didnt know you wanted. If you survive this and even come up on top as profitable or having less of a drawdown then buy n hold, then what better of a test could you ask for? Remember: Ignorance is NOT bliss in this game! It must be destroyed. Even if that means that you need to face the truth that maybe your system was just luck up until now and its not robust enough for these markets.

  I have been working vigorously with finding new filters, new entries, new exits, new markets, new timeframes! Ive been crunching numbers and improving my current systems while working on creating new.

  I knew, from lookin at my backtest, that these times would come sooner or later, its just a matter of WHEN not IF. And looking at these last crazy -10+% days: of course my mean reverting systems will take a few big losses, thats also the name of the game with mean reversion, many small wins, few big losses, its just “that time of the decade”.

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  Dont let these crazy times make you feel distressed, use it to find new paths to follow. Gain new knowledge. Improve you systems. If your systems are facing drawdown now, how can you avoid it the next time this volatility and downturn happens? And if you can find a good filter/solution, try it in all your systems.

  Wish you the best of luck, stay strong, make the adjustments you need to make and keep working. Feeling sad for youself wont help you with anything, in fact it might do even more damage.

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  jebus89

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