How to Reduce Drawdowns and Your Trading Losses. http://www.financial-spread-betting.com/Lose-money.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Why would you want to reduce your losses? Why would you want to reduce your drawdown? If we can reduce the drawdown we can increase the trade size and try to make more money from the market. If we use this effectively we could end up even doubling our position size which would increase our profits considerably on our favourable trades. So how do we reduce our drawdown? Again, this is all about examining all our data - we should be keeping a journal and statistics - stuff like maximum adverse excursion (maximum drawdown) and maxum favourable excursion (how much the trade goes in your favour). It may be tedious to record all those statistics but you're doing this because it helps you to improve and make more money in the end. Get all the trades together and try to see what would happen if your stop were to be 10 ticks lower or higher - how would that effect everything? You might recognise that you are being a little bit too early onto trades - if so when you get the urge to take the trade you could simply place the order 10 ticks under or split the order into two - and play around with that.
Maximum Adverse Excursion: Optimizing Stop Placements 🍆🙌
Maximum Favorable Excursion: Measurement of Potential in Trading Strategy 🍆🙌 - https://www.youtube.com/watch?v=oWoFnj69eD0
Critical Analysis of our Trading Performance.
In this series:
Critical Analysis: Where are you Making Your Money?
Critical Analysis: Tips to Help You Increase Your Trading Size & Trade Bigger Positions
Critical Analysis: What is Causing You to Lose Money Trading?
Critical Analysis: How to Reduce Drawdowns and Your Trading Losses
Critical Analysis: Do You Know Your Profit Winners and Losers?