Trading system strike rate:
Trading system which huge strike rates of 70 are very rare in intraday,but positional side it is possible.why because of the time factor
Question is can we find this 90 % strike rate in intraday.. it is snake oil :lol: ,as trading days of trending is 20 % and if we can catch that at max 70 to 80 % of the trend then..u la la..but what you will do on remaining 80 % of the time ??? lose what we got in those 20 % trending
D and S protected me up to 60 % of the drain,but after putting MP protection level reached 80 %.
50 % strike system gives number of trades,40 to 30 % strike rate you will be in 20 20 match
.90 % strike rate trades are very very rare, this rarest occurrence waiting time for this causes trading fatigue
A 50% strike rate for example is liable to suffer consecutive losing runs of 6-7, a 40 to 30 % strike rate liable to experience losing runs of 11+ at some point.
A 90% strike rate is liable to experience a consecutive losing run of max 2, more commonly 1, when it occurs .
I got that setup in positional side with VPOC and VOL.Divergence ,but very rare setups which offers 90 % stike rate…in last one year it come just one time ..in that case I take maximum relaxation in MM to capture this.
Psychological issue in trading lower strike system
In trading a lower strike rate system/methodology there are naturally more losing trades and crucially more consecutive losing trades. Our brains remember past losses and irrationally place more emphasis on them than the winners, resulting in it fearing more losses to come.
Further to this, such a consecutive run of losing trades can also interfere with the ability to actually place the next trade when the trading edge presents itself, fearful of further losses, thus interfering with the natural flow of probability upon which all trading edges rely.
Physical discomfort and Fear are powerful debilitating factors on the ability to profit from a trading edge.
Confidence in a trading edge can be shaken because it's user does not understand it's potential for delivering a consecutive losing run over any given sample and how long that consecutive losing run can be. This in turn can lead to the mis-management
Solution
The only effective solution in helping to overcome these potential physiological barriers, available to trader is to seek a trading edge that has a high strike rate over any sample of set-ups or to get protection from drain of losses,by avoiding tight range days and sharp edge days ,I took the second option with MP as i'm a trend trader
Trading system which huge strike rates of 70 are very rare in intraday,but positional side it is possible.why because of the time factor
Question is can we find this 90 % strike rate in intraday.. it is snake oil :lol: ,as trading days of trending is 20 % and if we can catch that at max 70 to 80 % of the trend then..u la la..but what you will do on remaining 80 % of the time ??? lose what we got in those 20 % trending
D and S protected me up to 60 % of the drain,but after putting MP protection level reached 80 %.
50 % strike system gives number of trades,40 to 30 % strike rate you will be in 20 20 match
A 50% strike rate for example is liable to suffer consecutive losing runs of 6-7, a 40 to 30 % strike rate liable to experience losing runs of 11+ at some point.
A 90% strike rate is liable to experience a consecutive losing run of max 2, more commonly 1, when it occurs .
I got that setup in positional side with VPOC and VOL.Divergence ,but very rare setups which offers 90 % stike rate…in last one year it come just one time ..in that case I take maximum relaxation in MM to capture this.
Psychological issue in trading lower strike system
In trading a lower strike rate system/methodology there are naturally more losing trades and crucially more consecutive losing trades. Our brains remember past losses and irrationally place more emphasis on them than the winners, resulting in it fearing more losses to come.
Further to this, such a consecutive run of losing trades can also interfere with the ability to actually place the next trade when the trading edge presents itself, fearful of further losses, thus interfering with the natural flow of probability upon which all trading edges rely.
Physical discomfort and Fear are powerful debilitating factors on the ability to profit from a trading edge.
Confidence in a trading edge can be shaken because it's user does not understand it's potential for delivering a consecutive losing run over any given sample and how long that consecutive losing run can be. This in turn can lead to the mis-management
Solution
The only effective solution in helping to overcome these potential physiological barriers, available to trader is to seek a trading edge that has a high strike rate over any sample of set-ups or to get protection from drain of losses,by avoiding tight range days and sharp edge days ,I took the second option with MP as i'm a trend trader