Profile image
By Blog For Trading Success (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

A Tool for Success 2

Wednesday, March 15, 2017 20:25
% of readers think this story is Fact. Add your two cents.

(Before It's News)

BarroMetrics Views: A Tool for Success 2

Although I have been speaking about journalling as if it were one, there are actually two aspects to it:

  1. The stats side and
  2. The psych side.

The stats side require the details of the trade. For example, date of trade, instrument, long or short, entry, exit, initial stop, size, setup and trigger. The minimum stats required would the Expectancy Details – either or:

  1. (Average Dollar Win x Win Rate) – (Average Dollar Loss x Loss Rate) = $X
  2. (1+(Average Dollar Win/Average Dollar Loss))x Win Rate -1 = %.

The two stats are slightly different. The first produces a dollar result, whereas the second produces a percentage result. The first says, given my results, each trade will generate $X; where the second says ‘for every $1.00 risked, I can expect, on average X% in the S’.

But other stats are useful, e.g

  1. What if I set my stop using a different method?
  2. What if I entered using a different trigger? etc
  • If you are trading mechanically, some questions:
  1. Has the system stopped working?
  2. Has the critical sequence of loss been exceeded?

The psych aspect seeks to record the conditions, internal and external, under which we trade best and under which we trade poorly. For example: under what conditions are we likely to breach our rules? Following a sequence of consecutive wins? Following a sequence of consecutive losses?

Before Edgewonk the answers were often difficult to find and certainly time-consuming. The software makes life a lot easier.

The post A Tool for Success 2 appeared first on Ray Barros’ Blog for Trading Success.



Source: http://www.tradingsuccess.com/blog/tool-success-2-4714.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.