The Power Of The Custom Statistics – Edgewonk Journal Review #3
This week, we have received a journal from a trade who is barely breaking even with his trading system.
When reviewing his journal, we found a few areas that could make a huge impact in his way of trading.
At the same time, the way he used his Custom Statistics to track very specific aspects of his trading will help him when tweaking his system and shows how effective the Custom Statistics can be.
Here are the main key take-away points from this specific review:
- Grading trades is a great practice. It also forces you to really think about the different signals/criteria you use. And you will be able to understand the effectiveness of the triggers
- Utilize the Alternative Strategies to explore ways of dealing with trade management or cutting losing trades
- Avoid trades with a red PCP traffic light as they are negative expectancy trades
- Work on setups with a low expectancy because they lead to higher variance and stress
- Custom Statistics that focus on trade quality and chart quality can be very helpful. This trader uses the Custom Statistics “Clean / Unclean Chart”, “Minor / Major Level”
- Bottom-Up means focusing on the basics first and laying a good foundation. We did not even look at the more advanced features in Edgewonk because this trader should work on his foundation first. Improving his foundation has the biggest impact on his performance and it’s usually the easiest to improve. Do not get lost in the nitty gritty when the obvious problems shpuld be fixed first.
If you want us to review your journal, take a look here: Edgewonk’s review service