May 2010 Trading Profit is UP 87%.
Trading Performance must be managed at 2 levels: Portfolio and Trade specific.
Portfolio Measure: Profit/Start of Year Cash Balance = $43,584/$50,000 = UP 87%.
Key Performance Metrics ...
Win/Loss Probability = 48/56 = 85.71%.
Average Win/Average Loss = $1,013/$629 = $1.61 Won per $1 Loss.
Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 85.71% x $1.61 = 1.38.
Positive Expectancy = (Win Probability x Average Win) - (Loss Probability x Average Loss) = (85.71% x $1,013) - (14.29% x $629) = $778 per trade.
NO trade adjustments needed.
For more, visit: homeoptionstrading.com/consistent_results