TradersCALM - Confidence - Case Study © "Dedicated to trading with good feelings."                                  All services are free.
	"Traders trade their confidence level."     If true, traders confidence is important. We will look at a case study of a stock trader, we will call her Anni.     The underlying concepts apply to trading any instrument.     Anni traded stocks both long and short.     Her results were profitable, but variable, and she set out to improve her consistency. She started a thorough investigation of her past trades.     Separating out any component of trade performance due to the underlying market, Anni analysed :     •   out-performance of stock purchases by percentage per day,     •   out-performance of short sales of stock by percentage per day,     •   what period is required for any edge to bear fruit,     •   over what period does any edge fall away. Anni then designed a trading system to exploit her identified/understood edges. Then she performed back-testing, forward testing.     All was well, so then she developed her risk of ruin, identifying in the process suitable position sizing and her understanding of the likelihood of four, five, six ... losses in a row.     Finally she started trading her new trading system using a very small position size, step by step increasing trade size with her confidence.     Is this the sort of confidence you have? Recently Anni reported her progress to TradersCALM:     •   Anni's error rate continues to fall,     •   she is taking a regular monthly income from her profits,     •   average profit percentage has doubled,     •   risk of ruin is now many times lower than before,     •   account size, after withdrawals is now five times larger than the last full review,     •   trade size is 10.5 times bigger after overcoming "barrier" at 3 times prior limit.		Welcome Self Assessment Links Inner Tendencies What's New Contact Us CALM Secrets Tip of the Week Risk of Ruin