My emotions have been up and down like a rollercoaster after a huge day of analyzing data.
I've been critical of myself for the mistakes I've made and how I let my portfolio slip...
And then finding a solution that could bring things back on track.
I find myself sitting at my desk.
After implementing all of my changes.
Staring at a screen of red numbers.
Hot flushes. Heart sinks.
Feelings of worry flood over me, head to toe.
It seems as though everything I know and have taught myself around the psychology of trading seems to have left my brain.
After reassuring myself, I wondered if anyone else feels like this when they trade or launch some bots...
I'm sure they do.
So I thought I would compile a few things I reiterate to myself whenever I launch a bot, and fail to remember the strategic decisions I made when I decided now was the time to pull the trigger.
Here they are:
- Remember where in the cycle you launched this bot and where was it headed - You knew this at the time you set it up and you were aware of the different ways it could play out.
- The logic of this bot is: Buy Low, Sell High. (It has to go up and down)
- Rather than focus on the change value %. Focus on the % return the bot is producing. How many days at this velocity would it need to turn those reds into greens.
- If the market price is on the way down, that might be causing your numbers to be in the red. Again, logic is, buy low, sell high.
- You had a strategy, look for your support levels and where they are on your grid. This is where you predict things will turn around.
- Remember what your backtest results were. If they were 15% a month. Set your expectations accordingly.
- Give it time. Settle. Assess results over a 2-3 day period.
- Lastly, remember the compound effect. Rome wasn't built in a day.