How Can I Be Sure That My Strategy Is Profitable?

When it comes to the aspect of your strategies being profitable there has been some recent and particular insight that has been given into being sure that your strategy in particular is profitable. In more detail to this aspect in general some questions to ask include how exactly your strategy applies to the market, as well as a few other things in particular.

Key Takeaways:

• mathematically correct does not always mean practical. We have to make assumptions based on probabilities not only when we take trades but also when we assess our performance in the markets.
• Every time we make an adjustment to our strategy, as well, we cannot play it out for 1,000 trades to see what those adjustments brought us. Heck, not even 100 trades are realistic if you are not a very active day trader.
• Our sample size does not have to be gigantic, it simply has to deliver actionable results to us, and to me, that easily happens after 50 trades, some people even go as low as 30 trades for comparing batches.

“Every time we make an adjustment to our strategy, as well, we cannot play it out for 1,000 trades to see what those adjustments brought us. Heck, not even 100 trades are realistic if you are not a very active day trader.”

http://www.tradeciety.com/how-can-i-be-sure-that-my-strategy-is-profitable/