Our Trading Combine rules are put in place to set you up for long term success, and to instill positive trading behavior. Below are the rules, what they mean, and why they're important to your trading:
1. Net P&L
What is this number?
- Your total wins and losses including fees and commissions
How to use this number?
- This is your trading scoreboard, gauge how well your strategy is working in the markets
- If positive: recognize your strategy is working, stay humble, keep doing what you are doing
- If negative: recognize that your strategy may need adjusting, keep your head up, and continue to review your metrics
2. Average Winning Trade and Average Losing Trade
What is this number?
- Average Winning Trade: The average profit from all winning trades
- Average Losing Trade: The average loss from all losing trades
- Your risk to reward ratio
How to use these numbers?
- If Average Winning Trade (reward) is the larger than Average Losing Trade: Remain focused on increasing this number and creating smaller losing trades
- If Average Losing Trade (risk) is the larger than Average Winning Trade: Focus on increasing winning trades and cutting losses early
3. Winning Trade Percentage
What is this number?
- The percentage of winning trades out of total trades (this percentage does not include break even trades)
How to use this number?
- If 60-100%: You’re trading well, consider increasing contract size
- If 40-60%: This is a sustainable and good range, maintain a positive risk to reward ratio to ensure profitability
- If 0-40%: Improvement is part of the journey. Decrease contract size, consider adjusting your strategy
Looking to improve these metrics? We can help and it’s included in your Trading Combine! Schedule a session with a Complimentary Performance Coach.
To view a video walkthrough of your Trade Report click here.
