What does consistency in trading mean?
I just want to share what I find today about consistency. Many of you might already know what it means to your trading.
I have spend many months from a beginner in this trading world, to... still a beginner. I have always question myself when will I become a consistent profitable trader. How can I tell if I am one?
Mark Douglas suggest that we take a 20 trades sample for the strategy, the more controllable variables for a trade, the more easy for us to replicate the strategy. The result will be what it is. Then modified, tweak, and learn then refine the strategy.
Then I think to myself, what if that 20 trades sample size turn into continuous measurable tool for consistency. Introducing 20 simple moving average trade, where we use result of the trade to plot simple moving average. I know it sounds so simple and obvious. It takes me almost a year to realize this.
Instead dollar amount, we use R as unit of risk (from Van Tharp), R as unit of reward. So that we transform $ amount world to "R-world". 5 years from now, $ amount of a transaction might change, but we will be always risk 1R for every trade (1R might be 1%, 2%,...).
Overtime, if we see SMA of results of R kind of swinging around a zone, that is consistency. Example in the graph.
That's all, thank you for stopping by. I hope you have a good journey in trading. Keep calm, and be a profitable trader.
I have spend many months from a beginner in this trading world, to... still a beginner. I have always question myself when will I become a consistent profitable trader. How can I tell if I am one?
Mark Douglas suggest that we take a 20 trades sample for the strategy, the more controllable variables for a trade, the more easy for us to replicate the strategy. The result will be what it is. Then modified, tweak, and learn then refine the strategy.
Then I think to myself, what if that 20 trades sample size turn into continuous measurable tool for consistency. Introducing 20 simple moving average trade, where we use result of the trade to plot simple moving average. I know it sounds so simple and obvious. It takes me almost a year to realize this.
Instead dollar amount, we use R as unit of risk (from Van Tharp), R as unit of reward. So that we transform $ amount world to "R-world". 5 years from now, $ amount of a transaction might change, but we will be always risk 1R for every trade (1R might be 1%, 2%,...).
Overtime, if we see SMA of results of R kind of swinging around a zone, that is consistency. Example in the graph.
That's all, thank you for stopping by. I hope you have a good journey in trading. Keep calm, and be a profitable trader.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.