Some days trading is just difficult! No matter how much I may like the Bombora System. No matter how many times it produces pips. No matter how many times I think I have come up with a system that wins, there are always these days.
There are two positives to these kinds of days though. They challenge my testing and they bring adversity. Let me explain…
Challenging my testing: I have back tested this system over a long period of time and hundreds of trades. I am not only fully aware these days will happen, I expect them. I know that 30-40% of the time, I will have some small stop outs as price crawls up the Bollinger Band and doesn’t bounce back in the direction of the trend the way the system predicts. So when these days happen, I can just move on and know that the next time, the odds of the trade working in my favor are now better than they were two days ago.
Adversity: I had this conversation with another trader the other day. Adversity is something that I rarely embrace but is a very helpful tool in trading. Adversity brings me to a decision point. Have I tested my system enough to know that these days happen and things will be ok? Do I need to do more work before I trade the system in any account? How many times can I expect this to happen? Am I mentally prepared for the draw down days?
What decisions are you being forced to make today because adversity has reared its ugly head again? About trading? About life? Adversity works the same way in all aspects of my day.