Doubt is a big performance killer when traders start questioning their current trading approach and then start trying out new things which they believe will perform better. Although the general idea behind it is good, when traders do this without a plan and structure, they will usually see inconsistent trading results which then leads to even more doubt and problems.
Update: The alternative strategies graph can now be found in the Chart Lab main tab.
Make sure to use the full-screen mode to view in best quality
The cure in Edgewonk: The Alternative Strategies
At Edgewonk, we are aware of this problem, and thus we created an easy and effective way to tackle those doubts while allowing traders to find their best approach.
For each trade, you can enter a potential outcome for a different stop loss, take profit or trade management approach. Later on, you can then compare those potential outcomes from your alternative strategies with your actual performance and directly see which approach performs best.
Now, traders can stop asking themselves “what if” and remove all the nagging thoughts and doubts that so often mess with a trader’s psychology.
Entering Alternative Strategies
To activate the Alternative Strategies, go to your settings and then under Alternative Strategies you find a switch that will enable the Alternative Strategies in your Edgewonk journal.
When you enter a new trade, you find the area for the Alternative Strategies in the advanced tab. You can track up to 4 different alternative strategies for each trade and you can even choose between tracking the outcome of the alternative strategies in terms of money or R-Multiple.
When entering the Alternative Strategies, you don’t need to worry about figuring out the exact $ or R-Multiple amount – which can be very tricky often. It is much more important to get the overall tendency right and not spend too much time here.
The goal for the Alternative Strategies is it to test hypotheses and once you have found a better approach, you can then add it to your repertoire.
The Alternative Strategies are an advanced Edgewonk feature we typically don’t recommend using for beginners because it can create confusion for inexperienced traders. When you have gone through the whole Edgewonk course and have more experience under your belt, you can come back to this lesson and start applying the Alternative Strategies.