Normal
I don't think too much about single trade risk. What is more relevant is portfolio performance over time. Many really get upset over individual trade losses but it's much better too look at performance over time. Taking a loss can be quite satisfying if it's put into the right perspective.A 95% probability of success for a portfolio over time isn't going to make the grade. But a 50:50 chance of the next trade being a winner isn't a problem.The only way I can test a system before I trade it is through testing. Duc - what software or method do you use for backtesting? Or are your numbers from actual trading? I am sorry if I missed this in previous posts.stevo
I don't think too much about single trade risk. What is more relevant is portfolio performance over time. Many really get upset over individual trade losses but it's much better too look at performance over time. Taking a loss can be quite satisfying if it's put into the right perspective.
A 95% probability of success for a portfolio over time isn't going to make the grade. But a 50:50 chance of the next trade being a winner isn't a problem.
The only way I can test a system before I trade it is through testing. Duc - what software or method do you use for backtesting? Or are your numbers from actual trading? I am sorry if I missed this in previous posts.
stevo
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