Well February is over. Bring on March. February was a sleeper. I had a total of two trades. Yes, only two. Though the month produced a small profit, two trades is tough to sit through.
To put it in perspective, last February had zero trades. But this is not a February "thing." February going back to 2009 in testing does not standout in regards to trade frequency. For this particular February, the overnight moves were either two great or the intraday too small. As a result there was not the right amount of volatility for the system to trade.
But trading is not supposed to be a seat of your pants, exciting event. It's supposed to be boring. And it requires a lot of waiting for the right opportunity. Not any opportunity, but the right opportunity. And over the past 4-5 weeks those opportunities were minimal.
Which is why it's great to have other outlets during the day. Not just running, which I love or some other non-business related activity to pass the time. Sure those are important but you need activities that not only pay bills but add value.
Value in the sense that you feel good about yourself as a person and not someone wasting time. These other activities also help you to not force trades. Not see an opportunity that is not fully developed and do something stupid.
Trade frequency is something often misunderstood. You can make a lot of money with a low frequency approach. And a low win rate. But it requires perfection if you will. It requires strict adherence to your rules. And not letting the emotional rollercoaster impact your decisions.
Which is why I love automation. You turn it on, let it do its thing and turn it off. It's a numbers game at the end of the day. A reversion to the mean. Periods of loss are offset down the road by periods of wins.
And periods of low trade frequency are offset down the road by periods of higher trade frequency. Hopefully March will be such a period.