How To Know You Have An Edge Or Whether It Still Works?
Use this 1 simple trick!
1/12
Use this 1 simple trick!
1/12
Knowing if your edge has stopped working or even know you even have an edge can be explained
Simply by just using a 20-trade sample size.
2/12
Simply by just using a 20-trade sample size.
2/12
This is because itβs just large enough to know if your system is working due to it being a large enough sample size
And just small enough not to destroy your capital if itβs not working as it should.
3/12
And just small enough not to destroy your capital if itβs not working as it should.
3/12
So if after 20 trades you are seeing abnormal results to what you have tested historically,
You can then begin to work out whether itβs because of you, some missing component, or the strategy itself is just obsolete.
4/12
You can then begin to work out whether itβs because of you, some missing component, or the strategy itself is just obsolete.
4/12
Trading in 20 helps think probabilistically
Its especially good for new traders or when starting a new strategy
Once you have your trading plan ready to go aim to consistently execute your system for 20 trades will help to think in probabilities and focus on the process
5/12
Its especially good for new traders or when starting a new strategy
Once you have your trading plan ready to go aim to consistently execute your system for 20 trades will help to think in probabilities and focus on the process
5/12
And not become obsessed with short-term outcomes as everything in the short term is random.
6/12
6/12
An edge works in large sample sizes.
It's only when you get to larger sample sizes does your edge begin to work!
And the 20-trade sample size is a great way to break down youβre trading into manageable sizes without being overwhelmed.
7/12
It's only when you get to larger sample sizes does your edge begin to work!
And the 20-trade sample size is a great way to break down youβre trading into manageable sizes without being overwhelmed.
7/12
Stop You From Blowing Up!
Using this method, you will be able to stop major problems in their tracks before they get out of hand and be able to consistently assess where you are at.
8/12
Using this method, you will be able to stop major problems in their tracks before they get out of hand and be able to consistently assess where you are at.
8/12
An Exercise To Start Now
1. Take the next 20-trades no matter what the outcome
2. After 20 trades review the results
3. If itβs positive and working as it should then continue for another 20 trades
4. If it is not, then find out what the problem is and adapt
9/12
1. Take the next 20-trades no matter what the outcome
2. After 20 trades review the results
3. If itβs positive and working as it should then continue for another 20 trades
4. If it is not, then find out what the problem is and adapt
9/12
A very simple and powerful method to help you stick to the process, and think in probabilities!
As well as saving you from wasting any more of your precious time on something that simply does not work.
10/12
As well as saving you from wasting any more of your precious time on something that simply does not work.
10/12
Want a full framework and step-by-step blueprint for trading?
Checkout my RBPA mentorship program and gain the knowledge and confidence to trade like a pro
Click below to join: π
zlappo.com
11/12
Checkout my RBPA mentorship program and gain the knowledge and confidence to trade like a pro
Click below to join: π
zlappo.com
11/12
If you enjoyed this thread, please:
1. Follow me (@TraderDivergent) for more
2. Retweet the 1st tweet below to share this thread
12/12
1. Follow me (@TraderDivergent) for more
2. Retweet the 1st tweet below to share this thread
12/12
Loading suggestions...