We have talked a LOT over recent years about the importance of reviewing trade stats in GROUPS. And using this analysis to drive our growth and development.
This simple concept here:
I still believe this is the best way to monitor the health of your business and to drive improvement.
Small groups, occurring regularly.
With the aim of achieving some degree of consistency across groups. And gradual, incremental improvement as we progress along the development pathway.
No, we’re not going to change this today. But perhaps we can add to the concept?
“Groups of Trades” is just one window through which we can view the health of our trading business. But there are other windows.
Like “Groups of Days” for example.
Or because we’re currently closing out one quarter and planning for the next, why not apply the idea to the whole prior quarter.
The stats work the same as before, simply replacing “trade” with “day”.
- Win% = Number of Winning Days / Total number of Days * 100
- Win/Loss Size Ratio (WLSR) = Average Winning Day profits / Average Losing Day loss
And feel free to review any other stats that may be of interest:
- Largest Winning Day vs Largest Losing Day
- Average Number of Trades on Winning Days vs Average Number of Trades on Losing Days
- Gather your “daily” stats for the prior quarter.
- Find the statistic which offers the best hope for improvement. The one offering the most potential for advancing you further along the development pathway.
- Then dig deeper into the daily data to understand why you achieved this prior outcome.
- And what changes you can implement to take your performance to the next level.
Go for it!
Related Articles (focused on small group analysis of stats):
- And perhaps a whole lot more scattered throughout the posts tagged “Trade Series” – https://yourtradingcoach.com/tag/trade-series/