How green is your green?
OK, so you’ve thought it out, researched it, done your TA and drawn up your plan. You manage to time the trade well and you’re trade is green…….but it’s perhaps after a series of stopouts or failed plans or “long-term investments” that sunk and stunk rather than shot to da moon.
You’re obviously trading to a method or a system. Perhaps you’ve modified it as you’ve grown as a trader. How does your equity curve stack up? Are your numbers favorable enough? Meaning, the stops you use, the percentage winners, the win/loss ratio, do they cut it for you? Are they good enough to make money?
I challenge you to reflect on these things…..to actually run your numbers in an equity curve generator and find out if your methods are robust enough.
Perhaps some tweaking could enhance the slope of the curve. Perhaps re-weighting of particular setups you trade can make a difference. You might trade 10 type of setups, and each will have different performance. Perhaps a bullish inverted head and shoulders setup reveals a bigger Kelley Value (% of capital to be invested) and a steeper growth curve than a double top breakout.
Just think about it anyway. Best to ya!
