Spillover between accounts

[Fairman]

Spillover between accounts

A trader runs two accounts: one for a short-term strategy and another for a slower approach. A bad stretch on the first account affects decisions on the second.

Emotions do not stay in compartments. Frustration from a string of losses on one account leads to a hasty entry on the other. Confidence from a win on one makes the other's position too large.

The effect is subtle and common among those who manage several accounts. Each account's statistics look fine individually, but the combined behaviour is erratic.

Some separate the accounts physically, with distinct screens or times of day. Others adopt a rule that a bad session on one account ends activity on all.

Monitoring the combined equity curve, not just each one, gives a more honest view of how the whole operation is performing.

Mixing strategies on one screen makes it worse. A scalping chart sitting next to a swing position that is down 80 pips pulls attention in both directions, and each decision gets contaminated. Keeping the swing account on a separate device and checking it at fixed times keeps the quick decisions clean.

Do losses on one account seem to change behaviour on another?