The present tense(less)

I think this post wraps up my brief history of trading and moves us into the present tense. Thankfully, the present is less tense.

Picking up the story from where I left off, I began working on an entirely new system toward the end of the summer in 2006. There were numerous fits and starts along the way, and I ultimately changed to Interactive Brokers to put more emphasis on good, cheap execution and less emphasis on real-time data. I used Collective2 to do a lot of experimentation, which proved surprisingly helpful. By December I had all the elements of a new system in place and coming into the new year I’ve started fully trading it.

For now, you can see the results on my Collective2 system 1Day, which was used to try out a lot of ideas, but since the beginning of 2007 is simply tracking my actual trades (though to a different scale, as C2 forces you to start with $100k play money).

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The great thing about my current approach is that it is easy. Well easy to execute on a daily basis… it was rather hard to develop. And that is the key lesson I believe I learned from my previous stressful success. Sustainable success isn’t going to come from a system that is massively difficult to actually trade. A good trading system should be like a good compressed codec, to use a techie metaphor. Take MP3s. The codec is designed to be front-loaded. All the time goes into the encoding. The decoding is quite easy and can easily be performed in real-time with minimal processing. The encoding will max out your CPU and takes quite a bit of time.

Likewise, developing a system is hard work, and as I believe I’ve amply demonstrated, takes a lot of time and involves a lot of failure (at least in my case it did). Actually trading the system, however, can be fairly straight-forward. I’ve got a spreadsheet that I use each night to download the hits on the six screens I use, and then ranks them and puts them in a format to be uploaded to my broker. It takes about 5 or 10 minutes a night to do my trades. Encode hard. Decode easy.

So my new system succeeds at lowering the stress level… time will tell if it remains profitable.

New Headboard for Abigail’s Bed

Early last year, we returned our second borrowed twin bed to Peter/Katie for sweet Sarah to graduate into. (Thanks, guys, for the several-year-loan of your wonderful beds.) At that time, we knew a move to a smaller house was in our future, and in preparation for losing that 5th bedroom/guestroom, we moved our comfy queen-sized bed into Abigail’s room, since 1) it was the only bed we had to give her and 2) we planned to eventually allow her room to function as a guest room and a queen bed is more conducive to guests than a teensy twin!

This meant she had to say goodbye to the headboard I’d painted for her “big girl” room several years back, and so I began searching for a queen sized headboard/footboard to “girlify” her new nest. (Note: I have decided that hunting for furniture bargains is a HUGE hobby of mine. Big shocker to my husband, I know! I love being able to furnish our home for a fraction of what it would cost me to walk into a store and pick out pieces sold there.) Anyway, I gave myself a reasonable, yet modest budget ($25-50) and searched for something that could be painted. And while I came across lots of very acceptable choices it seemed impossible to find something “sweet” that didn’t look generic, or as if it were more suited to an older person than for a little girl. The other thing I discovered as I searched was that while double and full sized headboards were everywhere for the taking, there were far fewer queens to choose from. (The double size has been around forever, the queen, not so long.)

After doing some calculations and making some inquiries, I determined that one could, if one was not super picky, try using a double-sized headboard on a queen bed. And probably make it work. This made the search a little easier..and just before Christmas I found the perfect headboard. It was wrought iron with beautiful scrolls and flowers that gave it a younger feel than many of the other headboards I’d found. I bought it at this place (neat bit of trivia on this store is that the owner’s name is Horne too…so they are always happy to see me when I go in!) and came in under my budget ceiling. Always nice. Last Thursday, after a few weeks’ stay in Grammy Ruth’s guest room (where I’m told it was very happy!), we brought the headboard home and set it up with Abigail’s bed, and we LOVE IT!! When the weather gets warmer, Abigail and I will drag it back outside and have fun painting it white, per her request.

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Besides pairing a full-sized headboard with the queen-sized bed, there is one more “trick” I used in setting up Abigail’s bed, and that regards the quilt on top. When she moved into her big girl room at 22months, we purchased this adorable quilt shown with the patches of little girls in various scenes all over it. It was a twin-sized quilt intended for her then twin-sized bed. But, as I mentioned earlier, we are now dealing with a queen bed. While I do hope to someday acquire/make new, queen bedding for the room, I wanted to use what she had for the time being, and we have done this rather successfully, by simply taking a queen sized quilt, flipping it over to its plain white side, and laying it on the bed, then draping her twin size on top. It may have been Stephie who suggested this wonderful idea to me, and if so, kudos to her! At any rate, the twin quilt perfectly fits across the top side of the queen bed, you can see the edges in green where it ends. It works beautifully…and perhaps it will be a helpful tip for any of you possibly trying to use a twin quilt/spread on a larger bed!

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Household Unpacking and Organization, Part 1 of Many

Since I have been away from our blog for a bit, I thought I should try and update you on some of my progress around our new place. For those who are easily bored by pictures of household belongings neatly displayed on shelves and photographic proof that at least SOME of the rooms in our home are slowly becoming decluttered, just go ahead and skip this post.

The two areas in our home that have been the MOST cluttered, messy and disorganized since we moved in are Abigail’s room and the kitchen. In the case of Abigail’s room, all toys were pretty much dumped there, the kids generally used it for playing, and I just did not make an effort to cull through, separate and organize all their playthings. Lack of organization makes it hard to keep a space anything close to tidy. So, week after week, the mess got worse, Christmas busyness put some necessary jobs on the back shelf, then travel and final move out from the old house put the work off even longer. Hence, her little girl “sanctuary” has been anything but, for many weeks now.

Until last week, when during our snow day the kids and I went crazy working in there and moved boy toys to boys’ rooms, unpacked everything that belonged to Abigail, and went through carefully getting rid of things we might not need before setting her room up. Getting her things in order also involved going through the many children’s books we own, sorting them into proper age groups for our family, and also poring over all games/puzzles/creative, crafty toys and doing likewise. So, like many an organizational task, it touched on so many more places in the house than just the room we were “working on”.

While I wish I had some before pics to show you, so you could easily see just what a miracle has been wrought in Abigail’s space, at least I have some “after” shots. Here is a shot of as much of her room as I can easily capture in one camera shot given walls, doors and angles:

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Here is the saving grace in her room, and what I spent most of my time getting set up to be both as functional and as pretty as is possible for me: two floor to ceiling built-ins of shelves. The shelves are adjustable, so we had the joy of rearranging them to suit the best placement of her things. (The rearranging was NOT easy or quickly achieved…but I’m so happy with the finished product.) We were able to store most of what she uses/plays with on a regular basis in this space. Here is what we came up with:

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So for now, we are done in Abigail’s room. She has asked for the walls to be pink someday, which sounds like so much fun. And sometime in the future we will work out curtains and some other things. But for now, we are very pleased with the state of her room. I walk in there at least once a day and tell her, “I feel so happy in this room. It’s so peaceful and serene and NEAT!” And she smiles and giggles and proceeds to entertain me with her latest story or account of some such that has happened in the land of stuffed animals, blankies, horseys, and dollies.

Some losses are better than others

Remember Jonathan’s misadventures? A milestone was reached yesterday when the last of the four damaged teeth came out of its own volition and in its own time. He still has a fake tooth serving to reserve a space for the future adult tooth, but it looks like we are closer than ever to the end of this sad dental saga.

All that remains, these many months later, is to sort out the insurance settlement…

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Stressful success can feel a lot like failure

I switched to Tradestation near the end of my second year of trading. After a couple months of learning the interface and trying out some ideas, my intuition kicked in. A vague idea was forming, but I couldn’t get a handle on it. Then, more on instinct than anything, I made a trade on September 1, 2005 that proved the catalyst to understanding. It went up 55% that day. I hopped out, and started systematizing that intuition.

It took some time, and there were some fits and starts, but I put together an approach that ultimately returned 140% profit in the following 8 months. Using no leverage, for what it’s worth. That’s the good. The bad was that it was killing me. The system was simply too stressful to trade while holding down a full-time job. Eventually, the stress led to mistakes, and what should have been a 10% drawdown turned into a 25% drop with the help of numerous mistakes on my part. Though I managed to sort my way through it and saw the beginnings of a nice recovery, I ultimately decided to set aside the system for that imaginary time in the future when I can trade full time.

So I had proven to myself that I could succeed, yet as I entered the summer of 2006 I felt I had to start from scratch, with far more emphasis on building a system that was relaxing, even if the returns were much lower. I had gained a new appreciation for the debilitating effects of stress. Stress doesn’t stay within neat boundaries, it spills over into all areas of your life. And I had also come to a better understanding of my strengths and weaknesses as a trader. I had developed a certain style, a personality, as a trader. Now I had to find out if I could invent an entirely new trading system that fit my style, gave good returns, and allowed me to relax.
Success -- sort of

What’s He Got in His Bowl??

Tonight we enjoyed this Southern Living Recipe. It’s frugal, easy to prepare (though I added the step of browning the chicken thighs before placing them in the crockpot) and a perfect winter meal. What’s more, everyone at the table enjoyed it. Especially Nicolas. He told us all about how much he loved his food.

Before I record his comments, please note that the dish consists mainly of chicken, white potatoes and carrots. But Nicolas doesn’t like to be hemmed in by ingredients. He doles out his compliments creatively. Accordingly, as he finished his meal, he announced happily to us, “I just love these sweet potatoes..they are delicious. Oh, and this ham is great too. I love this ham and sweet potatoes.” While the rest of people at the table stared at him, a bit confused, he noticed a piece of the “meat” had fallen in his lap. “Oh look! Haha, there is ham in my lap…I didn’t see that I had dropped ham in my lap! That’s silly!!” Silly, indeed.

House Closed! (Hooray!)

Hello, Dear Readers!

This is just a brief note to help bring closure to our house drama of the last few months. Yesterday, at 10am, we signed the documents to officially hand over ownership of our “old” house to the buyers. What a blessed relief…it is such a joy to just own one home again. And yes, I did do a little happy dance.

To those of you who have followed this house buying/selling saga in much more granular detail than we’ve provided here on our website, thanks for your patience and prayers and encouragement for the last 12+ months. We are truly blessed with so many kind and loving family and friends.

Now, we turn our attentions fully to our current home: unpacking, repairing, updating, maintaining. But first, just to keep things fun, Jay is set to undergo a bit of a surgical procedure today. Because, hey, why not celebrate a house closing with a little surgery?!?!

Another Cousin on the Way

Happy New Year, everyone!

We just returned from a week’s stay in St Louis, which we will hopefully fill you in on later. But I wanted to announce (now that they’ve let the cat out of the bag themselves) that Andrew and Jamison are expecting their first baby this summer…and that they’ve returned to blogging too! We now happily anticipate not one, but two cousins to be born in 2007 (also a little boy on the way for Katie and Peter soon!). We are thrilled for these soon-to-be additions to the family, and rejoice with the expectant parents!

Read more, and see the first pictures of “Tater Tot” at The Bloggertons!