Trading Performance must be managed at 2 levels: Portfolio and Trade specific.
Portfolio Measure: Profit/Start of Year Cash Balance = $61,321/$50,000 =Â UP 122%.
Key Performance Metrics ...
Win/Loss Probability = 60/68 =Â 88.24%.
Average Win/Average Loss = $1,106/$629 = $1.76 Won per $1 Loss.
Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 88.24% x $1.76 = 1.55.
Positive Expectancy = (Win Probability x Average Win) - (Loss Probability x Average Loss) = (88.24% x $1,106) - (11.76% x $629) = $902 per trade.
