Trading Performance must be managed at 2 levels: Portfolio and Trade specific.
Portfolio Measure: Profit/Start of Year Cash Balance = $54,951/$50,000 =Â UP 109%.
Key Performance Metrics ...
Win/Loss Probability = 55/65 =Â 84.62%.
Average Win/Average Loss = $1,099/$552 = $1.99 Won per $1 Loss.
Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 84.62% x $1.99 = 1.69.
Positive Expectancy = (Win Probability x Average Win) - (Loss Probability x Average Loss) = (84.62% x $1,099) - (15.38% x $552) = $845 per trade.
