You might like to consider your review process as the vehicle which drives your trading business to its ultimate destination.

Whether that destination is ongoing improvement and eventual success… or continued mediocrity, frustration and failure… is completely up to you.

If you've got nothing in place, here is a simple process to get you started.

Once you're comfortable with this, there is great scope to expand it to new areas of review. It doesn't solve everything.

But again, if you've got nothing in place, consider implementing this process RIGHT NOW.

Review and Improve

Look at your last 20 trades. Study them with the benefit of hindsight.

Examine 50 if you prefer. Or 100. Find the right compromise for sample size, which is large enough to be statistically significant and small enough to ensure your review process occurs on a regular basis. But not less than 20. I would suggest that is the absolutely minimum.

Once you've gathered all the trade data and charts, let's check the quality of the setups.

How many of your trade ideas were in chart areas which DID offer potential for multiple-R profits (2R minimum)?

It doesn't matter whether you actually managed to profit, or not.

We're checking the general concept. The trade idea.

We're making sure you're trading in the right areas of the chart.

Did price move from the setup area a sufficient distance to provide multiple-R returns?

Take note of all the trades within the sample which achieved this goal. And now let's check the quality of trade entry.

Now consider those trades that were in good multiple-R setup areas. How many were you able to enter at a place and time which offered good potential to catch those multiple-R profits?

Again, it doesn't matter if you achieved a profit or a loss.

With the benefit of hindsight, given where you entered, is it reasonable to expect that a successful trader could manage that position to achieve multiple-R profits?

How many of these trades would you classify as having a good entry?

Take note of them… and let's move on to check the trade management.

Now consider those trades that were in good setup areas and which were entered well. How many of these were successfully held from entry to the first target level?

How many were you able to hold open to the initial target point, avoiding all temptation to scratch the position early?

And then…

Of those which did achieve the initial target, how many of these were held to a further "hindsight perfect" exit point?

Again, take note of how many achieved this aim.

And now let's use this information to drive our business forward.

Looking at these figures, which area do you need to improve when trading the next sample?

It's important that we focus on one area at a time.

And that we work in order.

Get the setups right first. Are you happy with the number of trade ideas that are actually providing multiple-R profit potential? If not… focus on improving the quality of your trade ideas.

Then work on entry.

Then initial management.

And then ongoing management.

Find the first area that disappoints you. Examine why. Determine a course of action for the next 20 trade sample.

And repeat.

Happy trading,

Lance Beggs



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  1. Hi Sir.

    Great article.

    I’ve been referencing it for my 20 trades series reviews.

    However, I think I have not fully understood the concept of “trade ideas in chart areas which did offer potential for multiple-R profits”
    How do I determine a trading idea did offer potential for multiple-R? Should I consider my actually entry and stop loss, or the ideal entry, stop, targets and management in hindsight review?

    That being said, which numbers do you think are generally acceptable before working in the other areas (entry and management)?

    Thank you very much.
    Best regards.

    1. Hi Sergio,

      The intent here is not to concern yourself with your actual execution. We’re checking the quality of the trade ideas. So it’s a hindsight-based check simply asking whether or not it is reasonable to say we could have achieved 2R from this trade idea.

      What do I mean by “reasonable”? Simply that you can’t get the top and bottom tick in a move every time (or maybe any time).

      So just make a quick assessment – was it achievable or not?

      Why 2R? Completely arbitrary. Replace it with 1R or 3R or whatever else you feel more appropriately fits your style.

      Which numbers are acceptable before working on the other areas? Evidence of edge using the expectancy formula. 1R targets will require a higher win rate. 2R will require less. etc. So if your trade ideas have “potential” edge over the last 20, but you didn’t profit, then it’s time to move on to assess execution.


      1. Thanks!
        Now I think I got it.
        I realized my evaluation of the quality of the trading ideas was not too correct.
        Hope this better approach could help me to keep improving.


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