Understanding your trading strategy and properly interpreting its results are of the utmost importance if you want to be a long-term successful trader. Click here or in the video below to learn more about this topic.
Do you know the answers to these questions about your trading strategy?
- What is the actual probability that your trading strategy will win in the future?
- How does your strategy compare to other strategies?
- What is the real financial risk of loss of your trade?
- How will your trading strategy react to future variances in market conditions and timing?
In this excerpt from a presentation given to the Aeromir Corporation, we we provided an interesting comparison between the Bull and Super Bull trading strategies to answer these questions. The full-length presentation is titled Trader Transformation Principles and is available to our PRO, GO, or Trading Performance members on the Bonus page in the Locke Options Community.
These factors are very important to know in order to have confidence and know your trading strategies instead of relying on back tested results. Back testing is extremely important for learning the trading strategy well enough to trade but it is not useful for proof of future performance.
Fully understanding your strategy will also help to determine when it is the right time to increase or decrease capital, instead of the false confidence which is created after a number of wins and destroyed after a few losses.
Keep your trading mindset clear. Understanding your trading strategy is very important. Be able to clearly and confidently answer the questions above.
To discover how to answer these questions, we offer a trading performance course called Trader Transformation Workshop which offers over 11 hours of instruction with over 100 training slides covering the details every trader needs in order to fully understand their trading strategy.