An Practice To Evaluate Your Trading

Here’s a worthwhile practise I lately discussed alongside a trader.

Select a mensurate of marketplace position trending, such equally a X-period Sharpe ratio for the market.  Divide the concluding yoke of years into bullish trending, non-trending, as well as bearish trending periods.

Select a mensurate of marketplace position volatility, such equally VIX.  Divide the concluding yoke of years into low, medium, as well as high volatility.

Compute your cumulative profit/loss during the bull, non-trending, as well as bearish periods.

Compute your cumulative profit/loss during the low, medium, as well as high volatility periods.

Where are your sweetness spots?

Where produce yous lose money?

When should yous endure stepping upwards your game?

When should yous endure stepping dorsum from markets?

Where is your happy zone?

Further Reading:  Finding Your Trading Strike Zone
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