Portfolio Management | Trading Profit. Trading Performance must be managed at 2 levels: Portfolio and Trade specific. Portfolio measures:
Profit/Start of Year Cash Balance = $44,146/$58,380 = up +75.62%. Profit/Net Liquidating Value = $44,146/$91,527 = +48.23%.
Key Trade Performance Metrics: Win/Loss Probability = 38/42 = 90.48%. 38/4 = 9 Wins per 1 Loss. Average Win/Average Loss = $1,203/$389 = $3.09 Won per $1 Loss. Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 90.48% x $3.09 = 2.80. Positive Expectancy = $1,051 per trade. NO trade adjustments needed.
For more, visit: http://www.homeoptionstrading.com/consistent_results/
All Comments