It's interesting to look at the statistics of your trading at the end of the month. You can learn a lot from it - beginner or seasoned trader. I taught Kiki to do her stats and track things like average win to average loss ratio (average win divided by average loss), percentage of trades that are profitable and things like that. She uses it to track her progress. I use it to track my progress. We also use the numbers to decide when to increase our size.
One of the features of range bars is (as I have said before), you know your risk per trade instantly if you use a number of bars as your stop loss. Having consistent risk per trade is as important for me as looking at the average win and actual average loss.
Over an average month of, say, 21 trading days, I find that I get 2 or 3 days of below average profits, 1 or 2 extremely profitable days and the rest fall into an average profit range.
Watching these sort of statistics is important to ensure you are keeping your discipline. If your number profile changes significantly, better or worse, you need to look and find out why.
Today's trading day was a quiet-ish day for us.
Click chart to enlarge
I read your blog , thank you very much for all your advices . Hope you do not think this is rude but you seem to never take losses
ReplyDeleteHave a closer look. The loss rate is about 27% recently. Its the lowest it has been. It depends on the markets and the amount of chop to a large degree. I am also trading better since I started teaching Kiki.
ReplyDeleteAlso, these trades are all "inside out" or initiative, as I posted before, and order flow is easier to read. Trading responsively has a higher loss rate but can provide bigger average wins.
This topic is a good idea for another post.
Hey boss, any chance we could get what you are looking at for support and resistance on the ES before the RTH open tomorrow. Just for a comparison sake of course :oP
ReplyDeleteRino
Hi Rino, I don't do that but you should be able to pick up how to do it from the blog.
ReplyDeleteHi,
ReplyDelete"I am also trading better since I started teaching Kiki."
Over the years have used a trade journal, trading coach, chat room and etc. Perhaps the key (as in upper level) is "teaching" somebody to actually trade??
Thanks for the thought.