Link: How to be Consistently Profitable in the Markets
Richard from Move the Markets provided a detailed post earlier this year entitled How to be Consistently Profitable in the Markets which absolutely deserves reading and further study.
Without stealing too much of his thunder, Richard begins his discussion with the popular topic of Expectancy and provides a new calculation for the concet which eliminates ‘break-even’ trades from the equation. He then challenges the notion of expectancy by stating that traders do not make an infinite number of trades (a postulate assumed by expectancy theory).
Richard then discusses consistency and various measures that affect consistency and expectancy through a variety of generated graphs and charts to review.
He charts the following subjects and notes their affect on consistency:Â Profit Factor, Win Rate (% win), and finally plots a guideline chart for trading frequency as a function of profit factor.
The conclusion notes ten observations from his research that you should write down and further analyze.
Check out his post, including his conclusions, if you want to learn how to increase factors that can make you a more profitable trader.