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.
Search
POPULAR POSTS
Recent Posts
- What 3 Things Would You Do Differently in Your Trading If You Went Back and Started Again
- Learnings From Trading Money for A Hedge Fund
- Advice For Traders Looking to Trade Institutional Money
- Why Is Academic Literature Important for Trading
- Where Do You Get Ideas From When Developing New Strategies
- What Learnings Have You Had Trading for a Living
- What Got You Interested in Trading
- What Are Your Favorite Tools That You’ve Learned Since Being In EST
- How To Use The On-Balance Volume Indicator to Outperform the Market
- Understand and Profit From Reverse Stock Splits: A Comprehensive Guide
- The monthly calendar effect: Profit from Bitcoin’s September weakness
- Window Dressing Effect – Is it a Profitable Trading Strategy?
- Turnaround Tuesday: How to profit from this weekly market anomaly
- The Ultimate Guide to Backtesting
- Expected Return Stock Calculator | Calculate your expected profit based on different scenarios
- The Ultimate Collection of Trading Calculators
- Reverse Stock Split Calculator: Calculate Your Post-Split Position with Ease
- Position Size Calculator | Easily Calculate your position size using 3 position sizing models
- Stock Average Calculator | Quickly calculate your stock average price
- Compound Interest Calculator: Plan Your Future Wealth Fast!
Share This
Share this post with your friends!