The fourth commandment of profitable trading is you’ve got to have a positive edge or a positive expectancy in trading. If you apply your strategy repeatedly, do you get a positive expectation of making a profit? And I want to know if I test my strategy over the last 20 years, do I get like a thousand trades? Are those trades profitable overall on average? There will be many losses and profitable trades, but it needs to be profitable overall on average. Most people don’t even have a profitable approach. Most people wouldn’t have a clue because they’ve never tested it. And this is why systematic trading is a huge advantage because it’s systemized and objective. You can test and then know this is a profitable strategy.
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