Trading Profit Jan 2011 | UP 8.85% | homeoptionstrading.com | Options Trading Strategies

Jan 2011 Trading Profit is UP 8.85%.

Trading Performance must be managed at 2 levels: Portfolio and Trade specific.

Portfolio Measure: Profit/Start of Year Cash Balance = $4,424/$50,000 = UP 8.85%.

Key Performance Metrics ...

Win/Loss Probability = 20/35 = 57.14%.

Average Win/Average Loss = $382/$214 = $1.78 Won per $1 Loss.

Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 57.14% x $1.78 = 1.02.

Positive Expectancy = (Win Probability x Average Win) - (Loss Probability x Average Loss) = (57.14% x $382) - (42.86% x $214) = $126 per trade.

NO trade adjustments needed.

For more, visit: homeoptionstrading.com/consistent_results