📊 Importance of understanding trading statistics for any system.
📈 Need to gather extensive data (at least 100 data points) to assess system viability.
🎯 Key components for statistical analysis: entry point, stop loss placement, and profit target.
📉 Essential metrics: win rate, loss rate, and average gain/loss per trade.
@josantrader:
“In the new video of today, we are going to talk about the statistics of the system, not exclusively of my system, but as a whole. How to understand those statistics, how to make them, and work on any system that you have, anything that you discover. What is the process that I follow, for example, to do a study and reach the conclusion of, hey, look, this may give money, or simply it has not been a statistical coincidence, and it is over. Keep in mind several things. Trading is a world of grays. Any strategy that cannot be modeled, for example, in a trading program, for example, to give you its statistics and everything is simple, that you give a little button that gives you all the numbers. That gives me exactly the same, it gives me totally the same, because this world is not like that. This world is a world of grays. In fact, I comment, my strategy is not a strategy in which all the entries are identical. It is not like that. It is just the opposite. Each entry is totally different, totally different. The concept is the only thing that does not vary, and whoever does not understand the concept will not be able to make money in the market with this strategy. That is why the base, above all, is that you understand the concept of why I see that and why I trust that. Then keep in mind that in the end, in this you can make money in 1000 ways, you can find systems in 1000 ways, do not worry, you have to be flexible to discover if that can be true or not, and in the end you will have to discover it. Because no matter how much they give you the numbers, the numbers are simply those numbers. In the end, behind all this, there are people and there are things that make all this move, and you have to try to understand that.”
Watch the exact part of the video where Josan Trader talks about his trading strategy here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on trading strategies at the following link. BLOG.
