Testing and finding better trading approaches effortlessly
Many traders constantly ask themselves if they could make more money by making changes to their trading strategy, taking profits in a different way or managing trades differently. Usually, traders then just change their whole approach, hoping that it works out or they have to cumbersomely set up a new account and then trade their new approach simultaneously – until now!
With the Edgewonk Alternative Strategies, you can effortlessly track several different trading strategies and approaches besides your actual trading approach and Edgewonk shows you which one is the most profitable. But let us walk you through the Alternative Strategies and how to use them.
Step 1 – Activating the Alternative Strategies
Before you can use the Alternative Strategies in your trading journal, you have to activate them. For that, go to Settings and then choose the tab “Alternative Strategies” on the left. Tick the box for “Activate Alternative Strategies?” and click Save.
Step 2 – Setting up your Alternative Strategies
First, you should give the different Alternative Strategies names to be able to differentiate them and also so that you don’t forget what you are tracking here.
Then, select whether you want to track the alternative outcome of your trades in terms of money (the currency of your account), or in terms of R-Multiple.
Step 3 – Tracking the Alternative Strategies
When you now enter new trades, you can see the area for the Alternative Strategies under the Advanced Trade Data tab.
For each trade, you can now track the alternative outcome based on the different trading approach.
Step 4 – Analyzing the Alternative Strategies
Now comes the final step: finding out what is the best approach for you. Under the Trade Management tab, you can see a new area for the Alternative Strategies.
The two graphs show the performance of the Alternative Strategies in terms of R-Multiple on the left and the monetary gain on the right. The first bar is the performance of your actual trading performance and the 4 other bars are the different Alternative Strategies.
And that’s how you can use the Alternative Strategies to test different approaches simultaneously and effortlessly.