This was a rough day for the Performance Coaches. There's no sugar coating that. The Coaches' Trading Combine® is now at $49,808.39 - roughly $810 away from their Trailing Max Drawdown. After a great streak during October and the first week of November, the Coaches have given back $1,189.02 in the past four days they've traded.
During this stretch, the Coaches have only had one winning trade out of 14. If that's the case, you can have the best risk / reward ratio ever, but you won't make money.
Here are three things the Coaches are doing to shake themselves out of this losing streak. The next time you find yourself in a losing streak, here's your roadmap.
- Do I have a market bias that is hurting me? The Performance Coaches had a bias over the past two days that Crude Oil ($CLZ7) would move higher. They took three swipes at a long Crude trade today, but were on the wrong side of the trade, particularly given the velocity with which it broke below $56.00.
Tomorrow, the Coaches need to get on with reading the tape and see which direction the market is pushing (if in any direction at all). If it's a trending day, they should play it as a trending day. If it's a break out day, they should look for prices to break.
- Is there something wrong with my strategy? If you don't have a market bias that keeps getting you in trouble, you have to ask yourself whether your strategy is just not working in the current market environment. If it's not, you have to either look for a different strategy or for ways to maximize the risk / reward of your current strategy. Perhaps you get a little more selective with the trades that you do enter.
- What are the numbers that I have to be aware of? At TopstepTrader, we have Rules. And if you break those Rules, you lose the ability to earn a Funded Account®. The Coaches know very well what their Trailing Max Drawdown is. They know that at this point, their closing balance on any day cannot fall below $48,997. That's the line in the sand.
If they were in Funded Trader Preparation™, they would know that they can't lose another $224.24 this week or else they would hit their Weekly Loss Limit. Since that rule doesn't apply in a Trading Combine, they only have to think about the $1,000 Daily Loss Limit and the Trailing Max Drawdown.
Here's a play-by-play update of the Coaches trades on Twitter (@topsteptrader) using #CoachesCombine:
Just catching up on some #CoachesCombine trades. Coaches were stopped out of $CL_F long at $56.41. Took another long at $56.21, stopped at $56.06. Long again at $56.15, stopped at $56.00. Down $390 on the session.— TopstepTrader (@TopstepTrader) November 14, 2017
As a reminder, trades are not recommendations and we do delay the Twitter feed by 15 minutes.
Total performance for the day, including fees and commissions: -$404.72. Balance is $49,808.39. For more, check out their Trading Combine dashboard below.