Improving A Profitable System – Edgewonk Journal Review #2
This week, we are reviewing an Edgewonk journal from a trader with a profitable trading strategy and a good track record. However, there are a few things that we need to address and some flaws in his trading that keep him from reaching his full potential.
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A few observations based on the trader’s performance:
- He has long periods of good trading performance but a short period of losses can wipe out a significant portion of his winners
- He should learn to cope with losses more effectively to smoothen his equity graph
- He has a few significant outliers in his losses. He needs to address cutting those losses early on to protect his performance
- His winners are relatively small, compared to his losers. He can look into letting winners run longer or cutting losses earlier
- For that, he can utilize the Updraw or also the Alternative Strategies in Edgewonk
- His missed trades are performing well. He should look into why he is missing out trades
Overall, the trader has a great performance but to improve his returns and achieve a smoother account growth, he needs to look into the few issues pointed out above.