The case study shows how traders can significantly impact trading results simply by controlling how and when they exit. It illustrates how proper management can overcome even a poor win rate.
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Study: Can Small Losses Offer Retail
Traders a Trading Edge?
Grey Matter, LLC revealed
their case study assessing the
proposition that small losses
can provide an actual trading
edge.
The case study also explores
these two degrees of freedom, win
rate and win:loss size ratio, in
trade performance and
determines the easiest path to
superior trading results.
When a trader enters a trade,
they have the ability to control
the amount they put at risk,
but this study holds that size
constant.
As the study suggests,
once in the trade, the
trader controls only when
to exit.
Only the market and not the
trader has control over the
direction in which price
moves.
While the win:loss ratio is somewhat
dependent upon the trading
methodology, if market movement is
considered a random walk, then the
only degree of control that the trader
holds is the size of wins and losses at
their exit.
Grey Matter, LLC owner Lee
Grey understands that all
traders are looking for a
legitimate trading edge.
Most traders will find that the
largest impediment to
benefitting from this very real
edge is their own
psychology.
Grey Matter, LLC was
founded in 2016 and offers a
powerful and unique trading
tool for stock and option
traders.
This trading platform, Trade
Unafraid, enables traders to
improve their speed, discipline,
and market reach through
automation and superior
controls.
Contact Us At:
https://
tradeunafraid.com
Traders a Trading Edge?
Grey Matter, LLC revealed
their case study assessing the
proposition that small losses
can provide an actual trading
edge.
The case study also explores
these two degrees of freedom, win
rate and win:loss size ratio, in
trade performance and
determines the easiest path to
superior trading results.
When a trader enters a trade,
they have the ability to control
the amount they put at risk,
but this study holds that size
constant.
As the study suggests,
once in the trade, the
trader controls only when
to exit.
Only the market and not the
trader has control over the
direction in which price
moves.
While the win:loss ratio is somewhat
dependent upon the trading
methodology, if market movement is
considered a random walk, then the
only degree of control that the trader
holds is the size of wins and losses at
their exit.
Grey Matter, LLC owner Lee
Grey understands that all
traders are looking for a
legitimate trading edge.
Most traders will find that the
largest impediment to
benefitting from this very real
edge is their own
psychology.
Grey Matter, LLC was
founded in 2016 and offers a
powerful and unique trading
tool for stock and option
traders.
This trading platform, Trade
Unafraid, enables traders to
improve their speed, discipline,
and market reach through
automation and superior
controls.
Contact Us At:
https://
tradeunafraid.com