Our trading for 2010 is now completed (we do not trade in December). Our performance for 2010 was disappointing and frustrating. Tradingxyz’s point losses for 2010 were 2.50 points. Depending on the risk level chosen, this would have been:
1% risk = -.5%
2% risk = -1.1%
3.5% risk = -2.5%
This was our first losing year relative to our historical performance. Although the losses were relatively small, they were painful. It is always painful to lose money. In trading it is well known that losses are much more painful and memorable than gains. It is even more painful to underperform, but we will withhold judgement on this until the end of the year, when our performance benchmarks will be computed.
Nonetheless, one of the main aspects of money management and risk control is to not get blown out of the water. Good trading is about preserving capital and having it available in order to capture future opportunities. Our historical performance has been excellent and will return. The loss for 2010 was small, and generally insignificant, when one has a longer term perspective. Our capital has been preserved and we look forward to a much better year of trading in 2011.