Trading Profit Feb 2011 | UP 15% | homeoptionstrading.com | Options Trading Strategies

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

Portfolio Measure: Profit/Start of Year Cash Balance = $7,436/$50,000 = UP 15%.

Key Performance Metrics ...

Win/Loss Probability = 27/47 = 57.45%.

Average Win/Average Loss = $455/$255 = $1.78 Won per $1 Loss.

Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 57.45% x $1.78 = 1.02.

Positive Expectancy = (Win Probability x Average Win) - (Loss Probability x Average Loss) = (57.45% x $455) - (42.55% x $255) = $153 per trade.

NO trade adjustments needed.

For more, visit: homeoptionstrading.com/consistent_results