Minggu, 23 Oktober 2011

Improve the Performance of Your Trading System in 4 Easy Steps



In this article I'm going to look at ways that you can adjust your strategy to improve the performance of your trading system - how to do it, how not to do, and how can we ensure that it works when we do.

To improve the performance of your trading system

1 How to win more often

Can we reduce the percentage of losing trades? Our mission here is to identify conditions that are favorable to victory, and to add them in our system. We also need to identify the circumstances in which the loser is likely, and we can cut those trades from our system. It is about keeping your eyes and ears open - and keeping a good trade magazine. Make notes about why you won or lost trades - maybe in the market jumped down when not paid farm figure out ... Perhaps it is trending against our store that day ... may already be overbought when we entered our store ... These are just some of the things that you can be watching out for. Write these things down in your trading journal, including any ideas you have for what they could to avoid the losing trades for you, or what might increase their winners.

2 How to win more

The next thing you can do to increase the size of our victories, and reduce the size of our losses. It's about managing to exit a trade - winners and losers. One way to increase the size of winners compared to losers is to use trailing stops. These stop losses can be set to automatically move to the shop moved into positive territory. This should reduce the size of your losses and increase the ratio of wins - but it can also have a knock on effect of reducing the size of the winner (as well as to get the craft dropped to a tighter stop loss). To prevent this, you can scale out of your trades - taking partial profits on the first profit target, and leaving part of the trade position to run for future earnings. If you are interested in more details on how to make the following stops and taking partial profits work for you, I'll write about it in more detail in a forthcoming newsletter.

3 Do not act even

Now that you know the first two steps to improve your trading performance, you have the tools necessary to make this djelo.Sljedeći step is understanding how to apply that knowledge. My advice is to wait. Spend lots of time gathering information and evaluating this information. Do not rush to change your trading strategy. Keep notes about how they might be able to filter out losing trades - may have added an additional indicator that filters out any signals ... Perhaps to avoid trading at a certain time ... Also, keep notes on the different ways you can manage your stop loss and exit strategies.

4 Run the tests appropriate

Once you have accumulated information about why the trades are lost, and have built up a picture of what changes may help to improve our strategy - you are now ready for testing and amendment. Only when the amendments are fully tested to integrate them into your trading life. This May seem like a very long-winded way to improve on your trading system, but if you do not have much faith in the testing behind your system, you will struggle to apply it with discipline through the ups and downs of trading. As always with trading - a slower path is more successful

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