TIMESTAMPS
00:30 – UTILITY
So, you have been studying and learning TA and by now you have realized that trading is a serious career that requires TIME and discipline.
You now have many tools, levels, strategies, ideas, but you lack the confidence to pull the trigger and put RISK on.
This is a common issue amongst traders and can be initially frustrating, as your TA more often than not, is on point.
In order to overcome such a barrier, a trader needs to build confidence, and this comes via recording statistics, journaling trades, setting goals and using proper risk management.
Recording statistics should be kept simple, as traders tend to be busy during the trading action and a majority fail to come back and record such data.
From experience, the difference between winning and losing trades/money comes down to statistics and discipline.
Some of the most common trading statistics you should know and keep track of are Win Rate, Risk:Reward, Drawdown, Number of Trades, etc. A simple journal will have all these.
To achieve “Consistency” in trading, a trader must not only be consistent with the trading approach, but also in recording data.
In this lesson, we will learn a couple ways to simply record statistics and go into trades confidently based on raw data, math and probabilities.
There will be a file shared so you can start tracking your own stats.
With Statistics, things become clear. Confidence is built and consistency comes with time.
The goal here is simple: 60% to 65% Win Rate with 2:1 R:R.
03:26 – IMPLEMENTATION
In the file provided, you will have 50 trade samples to collect data. You can add more as and when required.
This data was collected on each touch of the naked level, and/or, after a 30-minute close, as we can have multiple touches during the session.
The number in green text is the total number in ticks price moved away from the naked level.
The number in red text is the total number in ticks that price moved through the stop level on a stop loss result.
As data is gathered, statistics start to build including the total average ticks, wins, losses, total trades and win percentage.
🔎 Live examples are shown of the Statistics file and how input and extrapolate its data.
09:18 – TIPS & TRICKS
★ Make sure you use different stats when using different tick sizes.
★ With the same tools provided, you can also record the session highs and lows, for example.
★ Make sure you minimally target a 1:1 Risk:Reward on every trade, although 2:1 is preferred.
★ To record the highs and lows, use the high and low indicator on a 15-minute chart.
★ Allow some time in between naked levels, i.e., 30 minutes.
★ Add session times into your stats for the highs and lows.
★ Risk the same % equity per trade, if you are not doing this you are also risking more on your stop losses.
★ If you RISK without any data, math or statistics, you will FAIL, no questions.
★ So, START NOW, and collect data!