Every Trader wants to stack the odds in their FAVOUR, so that each trade has the highest likelihood of being a Winner
“There is no “Secret Formula” that will grant us 100% Win Ratio.”
But the Good News is that, depending on the type of Strategy or System you are trading, you can have a Win Ratio of 40% or less and still be profitable.
But in any case, it always feels NICER when your trade winds up in the GREEN rather that in the RED, doesn’t it?
Here are some Quick and Easy Tips YOU can use to stack the ODDS of a WINNING strategy in your favour.
- Make sure your Reward/Risk ratio is greater than your Win/Loss ratio from backtesting results.
- Test your strategy over different candle periods? Higher Time Frame Analysis – Many traders make the mistake of only analysing the time frame that they are trading. It’s ALWAYS wise to see what’s going in the Bigger Picture
- Test your strategy with different currency pairs
- Is your strategy suited to a ranging market or a trending market?
- Have you looked at the trading dates and times you will be running your strategy over?
- Should you be running your strategy during major news events?
These a just a few examples of the questions we use in our own strategies
I’m sure you have your own favourite way of confirming strategies
It’s kind of like being a Juror – Right?
You’ve got to weigh all Evidence from the Prosecution’s Side and equally from the defendant’s side, take all the arguments into consideration and come up with a VERDICT