Trading Profit Oct 09 | UP 140% YTD | www.homeoptionstrading.comOctober 2009 Trading Profit is UP 140%.
Trading Performance must be managed at 2 levels: Portfolio and Trade specific.
Portfolio Measure: Profit/Start of Year Cash Balance = $81,560/$58,380 = UP 140%.
Key Performance Metrics ...
Win/Loss Probability = 57/62 = 91.94%.
Average Win/Average Loss = $1,473/$480 = $3.07 Won per $1 Loss.
Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 91.94% x $3.07 = 2.82.
Positive Expectancy = (Win Probability x Average Win) - (Loss Probability x Average Loss) = (91.94% x $1,473) - (8.06% x $480) = $1,315 per trade.
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