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The question of an edge

  #35 (permalink)

Elite_Member
Wiltshire, United Kingdom
 
Trading Experience: Beginner
Platform: Jigsaw daytradr
Favorite Futures: US Equity Index Futures
 
matthew28's Avatar
 
Posts: 699 since Sep 2013
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kevinkdog View Post
Negative expectancy trading method, Excellent psychology, money management, discipline : You LOSE

By the way, the expectancy description was good, but way too complicated.

Simple:

Expectancy = Average Trade

I put the cart before the horse spending a lot of time reading books on trading psychology and a couple of home study courses. Very interesting and I don't regret any of it as I feel it has been very beneficial for me as a person. But I feel it is similar to performance coaching for a sportsman which is done to enhance results and is best worked on after the basic techniques and abilities have become almost subconcious. I spent too much time on 'increasing performance' with out having the foundation of a valid trading methodology to build upon.

And I agree about expectancy. After looking at expectancy formulas that all seemed to differ from Van Tharp's in varying degrees of complexity I also just use the average trade. If after 100 contracts/Round Turns traded I have made $1,000 I see my expectancy as $10/Round Turn.


Last edited by matthew28; July 17th, 2017 at 03:36 AM. Reason: clarity
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