(Video) Screencast: The Importance of Focusing on Your Process Execution and the Objective Trade and Day Grading Tool

Screencast Video and downloadable, customizable Objective Trade and Day Grading Tool can be found below.

This screencast is a follow-up to a previous post that I wrote titled Boost Your Trading Performance by Objectively Grading Trades and Days. In that post, I discuss the importance of judging (and grading) each trade that you take and each day that you’re active in the market based not on the P&L outcome, but instead, on your execution of process. As communicated in the post, we can’t control when we get paid, but we can control how well we execute our process. Most of what’s contained in that post lines up with the content in the following screencast and tool, but there are a few differences. These differences include:

  1. The fact that there’s an actual tool to download and use (below) for personal use (this previously wasn’t available).
  2. The styling of the tool has been improved upon in the tool available to download as well as in the screencast, compared to the style of the tool in the previous post’s screenshots.
  3. The total number of potential points for the trade grading scale has increased in the tool available for download as well as in the screencast from 45 points (as seen in the previous post) to 50 points.
  4. Other minor differences.

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3 Highly Effective Ways to Help Scale Up Trade Size and the Position Sizing Tool

A link to view and download my Position Sizing Tool Google Sheet can be found at the end of section #1: Measure Risk in R-Multiples.

One common trading hurdle that I see with several traders (even some who are highly followed on Twitter with booming subscription services and chat rooms) is their difficulty in scaling up trade size once they feel that they are in a position to do so. This is something that can be overcome fairly easily by making just three changes to your methodology: Continue reading

Boost Your Trading Performance by Objectively Grading Trades and Days

One routine that has helped me in my trading career is to keep a record of all of my trades. I use a number of tools to accomplish this, but two that I use most often are Tradervue and Google Sheets. In this post, I’m going to focus on how I use Google Sheets to:

  1. Grade each trade that I take.
  2. Grade my overall performance for each day that I actively trade.

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Trading Return on Risk Projection Tool

A link to view and download my Return on Risk Projection Tool Google Sheet can be found at the end of this post.

I talk on Twitter about the importance of defining 1R (your static risk on every trade) as part of your trading methodology. When you keep your risk static on every trade, you significantly decrease the chances of destroying your account via a drawdown or even a few disastrous trades.

All too often, traders are focused on their win rate. However, as the following table illustrates, win rate should always come second to Return on Risk. Continue reading