Trading Performance must be managed at 2 levels: Portfolio and Trade specific.
Portfolio Measures: Profit/Start of Year Cash Balance = $58,426/$58,380 = up +100%. Profit/Net Liquidating Value = $58,426/$101,845 = +57.37%.
Key Trade Performance Metrics:
Win/Loss Probability = 46/3 = 93.88%. 46/3 = 15 Wins per 1 Loss.
Average Win/Average Loss = $1,303/$500 = $2.61 Won per $1 Loss.
Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 93.88% x $2.61 = 2.45.Positive Expectancy = $1,192 per trade.
