How to make trades that are as likely and as long as possible? Interested?

Mathematically, the outcome of a system over a long period of time is the expected value. Therefore, we are interested in trades that are as likely and as long as possible, and we want losses to be as unlikely and as small as possible.

That’s what the math says.

And that’s what the task is derived from. Solving it shows a clear direction for improving the system.

The task is to think more deeply about what makes your trades better:

1. What factors make your trades likely?
2. What factors will make the trades longer?
3. What factors will make you have the fewest losses?

Originally published on New City Trader — check for more trading tips, news and ideas for traders & funds: New City Trader Magazine: Future of Trading & Investing

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