Stacking things in your favour

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

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Want real discipline? Start algotrading.

It’s true. The best traders stay disciplined by sticking to their trading plans.

Trading by plan lets you know when to get into a trade and when to get out. (It isn’t an angel’s voice whispering in your ear every time you’re about to get greedy, friends. It’s the plan.)

If you’ve got a plan, it’s easier to stay objective and avoid revenge trading if things go south, as they will from time to time. And you’ll keep your mind focused and decluttered. No emotion allowed when you’re trading, remember? (Unless you’ve just won a trade and it’s party time.)
So, discipline, good. Gut instincts, bad.
The problem is, to practice your craft, you’ve got to actually get in there and play the market. And that means exposing yourself to a whole bunch of psychological obstacles you’ll need to be able to deal with effectively—pressure, fear, anger, uncertainty, etc.—if you want to come out on top.

Is the trend your friend?

No doubt you have heard that at some point in your trading carer or from others who trade, so we thought it would be appropriate for us to take a closer look at this saying and see if it really holds up.

Even though a lot of trading educators and ‘gurus’ tell you to trade with the Trend, they never clearly define a Trend.
OK then, What is a Trend? Well, let’s keep it short and sweet

Afraid of impulse trading? You should be

Not only does trading discipline keep you from doing stupid (i.e. greedy, angry, reckless) things, being consistent with your strategies also teaches you a lot about how the market works. And that’s how you build up the confidence you need to make a business out of trading.

So, discipline, good. Gut instincts, bad.
The problem is, to practice your craft, you’ve got to actually get in there and play the market. And that means exposing yourself to a whole bunch of psychological obstacles you’ll need to be able to deal with effectively—pressure, fear, anger, uncertainty, etc.—if you want to come out on top.

We get asked a lot of the same questions

“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.Trading by plan lets you know when to get into a trade and when to get out. (It isn’t an angel’s voice whispering in your ear every time you’re about to get greedy, friends. It’s the plan.)

If you’ve got a plan, it’s easier to stay objective and avoid revenge trading if things go south, as they will from time to time. And you’ll keep your mind focused and decluttered. No emotion allowed when you’re trading, remember? (Unless you’ve just won a trade and it’s party time.)
So, discipline, good. Gut instincts, bad.
The problem is, to practice your craft, you’ve got to actually get in there and play the market. And that means exposing yourself to a whole bunch of psychological obstacles you’ll need to be able to deal with effectively—pressure, fear, anger, uncertainty, etc.—if you want to come out on top.

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