My mid-year sanity check has my brain in high gear, especially as it relates to the chart mentioned in my last post in terms of "why has it worked?"
Here are a few thoughts:
(1) The bounce is similar to actual performance after draws. Essentially it's "been there, done that" and thus reflects concrete evidence that has evidently been burned into my brain to support the expected performance bounce.
(2) The chart reflects one of my all time favorite setups: a reversion toward the mean -- a.k.a. 1st pullback following a break to new highs -- in a clear uptrend, albeit at ridiculous proportions. The fact that the chart is an equity curve and not a market chart makes no difference. I've often found that life's charts are extremely similar those of the market. Consolidation breakouts, doldrum days, peaks & valleys ... you get the point.
(3) By believing that "eventual day from hell that's just around the corner" that used to plague my trading has already occurred, the likelihood that I'll self implode due to some silly subconscious income-limiting belief has been greatly reduced. In fact at this very moment, I'm looking at the chart pissed as heck that I just drew down that badly on Friday to prepare for the coming week. "How could it happen?" "What did or didn't I do?" "Back off from the next trade until damn sure it's the right high probability setup!" All soul searching for Monday.
(4) It just "feels" right. I can't explain it, but it has made my trading feel more natural and unforced, and as a result I find myself holding good entries longer, withstanding more wiggles, and trading larger sizes more naturally. Perhaps it's because I know -- even without viewing the scorecard -- that there's an underlying growth in capital such that has alleviated much of any former capital-related fear component. Who knows? All I can say is that it just feels as if the world is at it should be.
Some day, I'll share the actual results of this week, but that's for another day. I've got a comeback to focus on.