Which metrics do you use to review your trading strategy?
Hi everyone,
I’m trying to improve my weekly trading review process and I’m curious what other traders actually track.
Most people focus on win rate and profit factor, but I’m wondering which metrics are really useful for finding weak spots in a strategy.
Do you review any of these?
average Rmax losing streakhourly performanceweekday performancelong vs short performanceequity curve behaviordrawdowntrade count by session or setupWhich metrics helped you improve your strategy, and which ones turned out to be mostly noise?
I’m not looking for signals, just trying to improve the analysis process.
I am a beginner trader and would like answer to this question as well.
normally, i track my p/l in percentage basis
that is, how much i got out of a trade in percentage to my current a/c. Eg. -.56 when i have a balance of 10,000
I just constantly improve what I can. Would like a few tips :)
EHRSPC posted:I am a beginner trader and would like answer to this question as well.
normally, i track my p/l in percentage basis
that is, how much i got out of a trade in percentage to my current a/c. Eg. -.56 when i have a balance of 10,000
I just constantly improve what I can. Would like a few tips :)
That’s a good start, especially if you’re a beginner.
Tracking P/L as a percentage of account balance is useful because it shows risk in relation to your account, not just money made or lost.
A few simple things I would also track:
risk per trade %average win %average loss %max losing streakbiggest drawdownnumber of planned vs emotional tradesnotes on why you entered the tradeFor me, the goal is not only to see if I made money, but to understand whether the way I traded was repeatable.
Even a profitable trade can be a bad trade if it broke the plan. And a losing trade can be a good trade if it followed the plan.
Strategyleak posted:EHRSPC posted:I am a beginner trader and would like answer to this question as well.
normally, i track my p/l in percentage basis
that is, how much i got out of a trade in percentage to my current a/c. Eg. -.56 when i have a balance of 10,000
I just constantly improve what I can. Would like a few tips :)
That’s a good start, especially if you’re a beginner.
Tracking P/L as a percentage of account balance is useful because it shows risk in relation to your account, not just money made or lost.
A few simple things I would also track:
risk per trade %average win %average loss %max losing streakbiggest drawdownnumber of planned vs emotional tradesnotes on why you entered the tradeFor me, the goal is not only to see if I made money, but to understand whether the way I traded was repeatable.
Even a profitable trade can be a bad trade if it broke the plan. And a losing trade can be a good trade if it followed the plan.
Will try it. Thanks :)
SmiteFX posted:Average profit % and dd % per month. You should have sufficient track record to safely determine this number.
That makes sense. Monthly return vs monthly drawdown is probably one of the clearest ways to see if a strategy is actually worth trading.
I guess the hard part is having enough trade history to know whether the numbers are reliable, not just a good short-term run.
Do you usually look at monthly profit / drawdown ratio, or just compare both separately?
