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Getting overwhelmed......

  #6 (permalink)

Posts: 10 since Aug 2016

I would not make money if I stopped doing research. It is a vital component of my strategy, however if you don't know what to research and how to take advantage of your data, you will find it useless. Maybe that's your case.

I monitor at least 30 trading metrics but I don't make daily notes on a journal. I like to work with data because it makes you look at your trading objetively.

My key metrics are:

Win rate by strategy and instrument: Tells me whether my strats are in good shape.
Profit factor: Tells me how I manage my risk and whether I hold on to losers as much as my winners.
Pnl by longs and shorts: Many times, you lose money going short or long, it is important to know what side is optimal to manage your positions
Daily pnl bar charts: Useful to set daily loss limits
Pnl by instruments: By knowing which instruments bring me most profits, I can take larger positions more confidently and simply scratch losing instruments from my list.
Best times to trade: Days and hours where I am most and least profitable.
Best strategies: For advanced traders, it is useful to test new strategies. I tag all my trades and know what strategies bring me most profits. For beginners, it is essential to know whether your strategies are working at all.

It is doing research that you find what works and what doesn't. You can then use this data to adjust your trading strategies very much like adjusting a race car. Tweakning constantly for optimal performance.

There are tons of tools to help analyze this stuff. Check out trademetria if need one. I am the developer.

Last edited by homembolsa; December 22nd, 2016 at 03:32 PM.
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