Nevermind your risk to reward. Does your trading have positive EV?

Like many traders discover

You think you are applying the right approach

Only to find out you are burning up your account

How do you get it so wrong, then?

Know this

your eyes deceive you

Look at the image below

It's not in colour, but black and white

and it has a grid applied over it

And because eyes deceive us

developing a playbook is knowing in advance

the trade you make in the live market has positive EV* regardless of what your eyes are telling you

* slang for expected value. Poker term to measure not by outcome, but over 100's of plays, does it make money? Is it profitable?

It's not uncommon to watch the market moving along

• and you can't participate because you know entering into the current behaviour has a negative EV If you are reluctant to trade in SIM

• Or review trades

• Or playback your trades

You're missing your chance to pick up behaviours and nuances that separate the positive and negative EV trades.

Example from earlier:

What trade do you want to make in the circled area?

How about now?

And now what?

And what now?

Yes,

above is the same market in chronological order

The circled area is negative EV

And what's worse than entering a trade there, is

flipping your position on each bit of new movement,

because all you end up with is an ass kicking.

What to do next?

See what you look like as a pro

Knowing the game with the skills to match