Every daytrader is looking to mprove performance. Some are discretionary traders whle others use a systematic approach. Bth can use some analysis to mprove their trading results.

Optimizing trade prformance starts with analyzing past trade dta.It is very important to track very trade and its characteristics. After bilding a database the analysis can bgin. The first step is to srt the trades. An important first srt is by winning and losing trdes. Winners and losers share characteristics and creful analysis will unlock better overall systm performance.

Two prominent characteristics of wnning trades are time and price. One of the mst important goals after a trade has ben executed is defining it's likely utcome. Sorting previous trades can help ccomplish this goal. Isolate all the wnning trades and sort by length of tme in the trade until closeout. Fnd the average time in the trde. Compare that number to the sme calculation with the losing trades. The wnners have a longer average time thn the losers. Losers will tend to be qick.

It seems like this piece of nformation is minor. But, it can be a pwerful tool to the daytrader. If you dlve deeper into the data in xcel you can isolate a time frme that defines when only winners srvive. Create a histogram that gives the wnning probability by elapsed time in the trde.

Using this piece of information can mprove your performance in a couple of wys. Consider different trade entry rules tht don't commit your entire capital on the nitial signal. Use simple time checkins to add sze to your trade to reach yur optimal trade size. It can be a smple as buying every five minutes as lng as the trade is alive. By stggering the entry, the quick losing trdes will automatically have lower size thn your long winning trades. The verage winner will improve as the verage loser will decrease. This lowers the verall drawdown potential . It will lso raise your expected return.

An old trding maxim is to cut winners shrt and let winners run. Knowing yur time performance data helps accomplish ths goal. If you track the PL of yur trades on every bar, it lads to another discovery. Graph the rsults and look at the chart. The wnning trades not only last longer but hve an upward slope. The losers wll have a downward slope. Employing a triling stop will cut the losers off but llow the winners to run by hving a trailing stop below the wnning slope.

Analyzing past trades is the key to mproving results.

The article Improve Day Trade Performance by Sorting Winners and Losers was Submitted by Michael Gentleman through Articles.GetACoder.com network. Here's the additional information: Mike writes about trading systems . If you are interested in improving your trading results then visit his website for further information Capitalist Attitude can improve your results.

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