BarroMetrics Views: Risk Management II
Turning today to Baz’s questions – see latest comment below…
Before I tackle the question, let me first look at what I consider to be the assumptions behind it (Baz please correct me if I am wrong about your assumptions).
Baz is looking for a high win rate. If I were coaching Baz, my first question would be:
“Why are you trading?”
I would expect a reply along the lines:
“To make money”. I’d then ask:
“What is more important to you, to make money or to have a win rate? If you were given the choice between making money or having a high win rate, which would you choose”.
Baz would probably reply: “I want both”.
“But if you had to choose, which choice would you make?”
Let me ask that question of all of you – ‘which choice would you make?’. Think carefully about your reply – let it be as genuine and honest as you can make it. The answer may surprise you. And, a genuine and honest answer may well hold the key to the reason why you are not consistently profitable (assuming that at this stage you are not profitable).
Baz, how about dropping a comment and giving your answer to this question? If shy, I’ll accept your email response.
Baz’s Latest Comment
Hi Ray, What i was trying to do was, based on my observations of the forex market data, define a clear set of trading plans. Prima Facie ,it had a high win rate. To evaluate the data using Expectancy Formula to avoid Murphy s Law.
Also to use the process as an introspection so as to tighten up any sloppy habits that may creep in. A Renaissance.
cheers Baz the Inquirer