A few days ago I posted about my personal commitment to simply trade what I’ve tested this year. Well, these past two weeks have been a great testament to that process and the pay off has been pretty solid. Currently, I’ve only spent enough time testing the corn futures market to be comfortable allocating capital against it. If you follow any of the commodity markets, you’d know that these last few weeks have presented amazing volatility and irrational trading according to some of the respected commentators in the grains space.
Last year, I’m pretty sure that I would have walked away from this type of market with a nice big loss. My system would have performed really well, and I would have added enough horrible trades in to lose a bunch of money. These would have mostly been entered very late at night, in a thin session and they would have all moved against me. I would be angry and swear that I wouldn’t do it again.
Well, this year, I didn’t do it again. I stuck to my guns and just traded what I’ve spent time testing. It worked like a charm and kept me out of some of the insane volatility while basically nailing the drops over and over again. I only had 7 positions triggered and 5 of them were winners. In a market like this, I can’t ask for anything else. That is a net of +35 points on each contract traded, not to bad over a two week period if I do say so myself.
Let’s just hope that the rest of the year continues to provide solid returns. I’m pretty darn confident in the system I’ve developed and I’m looking forward to branching out into a few other grain products in the future as I have time to back test and ensure the system ports over cleanly.