The Voodoo Trading Journal - Spreadsheet Format

All the Tools to Build and Execute a Systematic, Rules-Based, Trading Strategy     

• Includes 1 PDF and 1 Excel File 
• Instant Digital Download

Step 1- Build your Trading Strategy

• Includes a 20 page step-by-step PDF workbook to guide you through the development of a personalized, rules-based, trading strategy

Step 2 – Define your Trading Rules

•  Included in the PDF is a summary template where you will define your trading rules including: 
  • What Markets to Trade
  • How to identify Trending Markets
  • How to enter the trade
  • How to exit the trade if you are wrong
  • How to protect your capital
  • How to exit a profitable trade

Step 3 – Identify the Markets you will trade

•        Develop focused list of approximately 30 Markets that you will trade.
•          Markets will be diversified among Equities, Commodities, Currencies & Fixed Income markets
•          Markets identified in table will keep you focused and will be used as inputs on "Backtest" and "Trading Journal" spreadsheets

Step 3 – Backtest your Trading Rules

• The trading rules you develop will be so specific that you can apply them to historic market charts to see how they would have performed in the past
•  You need to backtest to give you confidence to execute your trading strategy in stressfull market conditions
• The Backtest Spreadsheet will document all your backtest trades
• Spreadsheet will calculate: entry price, stop loss, number of shares to buy, trade gain/loss, R-value of trade etc.
• Winning trades will be automatically highlighted in green and losing trades highlighted in red to provide visualization of winning and losing streaks
• Annual Growth Rate Table will automatically summarize results of up to 10 years worth of backtest trades
• Backtest Summary Table will automatically calulate: total winning/losing trades, win rate, profit loss ratio, maximum drawdown & Compound Annual Growth Rate(CAGR)
•  Once backtest data is entered spreadsheet is interactive and you can experiment with various levels of portfolio risk and stop loss ATR’s to see how trading performance would be impacted.

Step 4 – Systematically Execute the Rules

•  Systematically executing your trading strategy is the key to your trading success
• 5-10% of your trade will be responsible for the majority of your annual performance
• You can’t afford to miss any single trade
• The Trading Plan spreadsheet will provide you with a Daily and Monthly to-do list to help you systematically execute your trading strategy.

Step 5 – Document trades in Trading Journal

• Trading Journal Spreadsheet will document all your trades
• Spreadsheet will calculate: Entry price, stop loss price, number of shares to trade, trade gain/loss, account gain/loss and R-value of trade.
• Winning trades will be automatically highlighted in green and losing trades highlighted in red to provide visualization of winning and losing streaks
•  Includes hyperlink to your stock chart provider so you can refer to chart to review trade performance for each trade
• Trading Strategy Statistics will automatically calculate: total winning trades, total losing trades, win rate, average winning trade profit, average losing trade loss, biggest winner profit, longest losing streak, total profit & profit expectancy per trade

Step 6 – Review Monthly Performance

• Monthly Performance Spreadsheet summaries your overall trading account performance
• After entering account balance from your Brokerage Statement the spreadsheet will summarize year to date performance and create a bar chart showing monthly performance
• The Annual Growth Rate table will summarize annual performance
• The Monthly Trading Performance Statistics Table will automatically calculate Compound Annual Growth Rate (CAGR), maximum drawdown, best month profit and worst month lose.

Step 7 – Review Benchmark Dashboard

• The Benchmarks spreadsheet automatically generates a summary table and charts based upon your inputs on the “Backtest” and “Trading Journal” spreadsheets
• This allows you instantaneously compare your backtest results versus actual trading results to determine if your trading rules require any fine tuning
• Charts are generated comparing: Compound Annual Growth Rate (CAGR), Win Rate, Profit/Loss Ratio, Maximum Drawdown and Winning versus Losing Trades.