How to develop a trading method
To achieve consistently stable earnings, every trading method must be reproducible. Furthermore, such methods need to be updated frequently, as the market changes daily. There's no end of method development.
Basic cycle
A method must be evaluated and improved as frequent as possible. After the evaluation, it should be updated to improve.
There are 2 ways to evaluate: by expectation or by performance.
| way | evaluation timing |
|---|---|
| expectation | right after creation or updates of the method |
| performance | right after position close |
writing…