Scalping futures equity curve
Above are two equity curves based on the Vector scalp futures trades today. The first taken after 8 trades, the second taken after 23 trades. Below is the Chat discussion regarding same.
To summarize, it was shown that taking the first 8 Vector scalp trades and quitting after the string of early profit (+57 points) would see an equity curve three times better than extending trading into 23 scalp trades for +44 points. That is a classic example of why one should thoughtfully consider when to terminate a given trading strategy for the day, perhaps to go play golf or relax after early positive and good results. 
There is no question that trading is an addictive pursuit, and it can be difficult to step aside from the market after a successful string of trades. But one should consider using the today’s sytem results today as proof that trading all the time, being exposed to risk all the time, trading for the rush or excitement or simply because you love it and can’t stop yourself, is going to perhaps affect your profitability.
The chat room is free and lurking/participating is welcomed.
Transcript of chat: (read from bottom up)
Spike: Stopping early triples the equity curve value. Commissions are reduced, and you quit after a good profit streak and avoid the chop.
26 Sep 06, 12:10
Spike: equity curve much much healthier: http://img128.imageshack.us/img128/9094/equitycurvesept26first8tradesme1.gif
26 Sep 06, 12:09
Spike: W/L=18.25/4=4.56 Prob=50%
26 Sep 06, 12:08
Spike: Now had I stopped after the first 8 trades, here’s the breakdown: +40-2-5+8-5+5-3-1+20 4 winners from 8 trades. +73 (winners) -16 (losers). Total +57.
26 Sep 06, 12:03
Spike: correction needed to earlier post: Average loser = 56/14=4 (typo missed the 1)
26 Sep 06, 12:00
Spike: 44×5=$220 per contract, less commish on 23 trades. Net is therefore about $130 per contract. System started well and early finish would have been wise.
26 Sep 06, 11:59
Spike: equity curve for those stats: http://img291.imageshack.us/img291/3851/equitycurvesept26scalpsob2.gif
26 Sep 06, 11:58
Spike: Largest winner +40 was from a long, largest loser -10 was from a short.
26 Sep 06, 11:58
Spike: Winners were from 5 longs and 4 shorts. Losers were from 7 longs and 7 shorts (pushes counted as losers for lost commission). Highest point winners were from longs.
26 Sep 06, 11:57
Spike: Probability=9/23=0.391. Average winner=100/9=11.11 Average loser=56/4=4. W/L ratio= 11.11/4=2.7775.
26 Sep 06, 11:57
Spike: Breakdown on first 23 trades: +44 points. 23 trades (12 longs and 11 shorts). Wins 9 wins. (+40+8+5+20+6+8+5+5+3= positive 100) 14 losses (-2-5-0-5-3-1-4-1-10-6-5-4-0-10=negative 56).
26 Sep 06, 11:50
Spike: Short 11680.
26 Sep 06, 11:40
Spike: Just doing the equity curve calculation on this morning’s scalping madness.