Get As Many Big Wins As You Want In Trading

This article elaborates on the one dated August 7, 2006 entitled “The Ideal Trading System”.

Today’s article is about two related features. The first is the “win-loss size ratio”.

Every system has some wins and losses. That’s a fact of life in trading regardless of what you trade – whether eMini Stock Market Index Futures, Gold, Wheat, Currencies, Options, etc.

Do you like to get huge wins? How about huge losses too?

Or do you want to get huge wins and small losses? (Yeah, me too!)

How about small wins and huge losses? Or small wins and small losses?

A feature related to “win-loss size ratio” is the “outcome distribution” feature. That feature is about how many of each size of wins you get and how many of each size of losses you get.

Do you want to have a lot of big wins, a moderate amount of medium wins and a few small wins? How about having a lot of big losses, a moderate amount of medium losses and a few small losses?

Or maybe you prefer the opposite. That is, a lot of small wins, a few medium wins and the rare occasional big win. You might like that if you have a high “need to be right”. Actually, a “need to be right” is conditioned into most people who are successful in school. Bill Gates (Microsoft) and Steve Jobs (Apple) both dropped out, and won big with a single big win!

Or how about a lot of small losses, a few medium losses and the rare occasional big loss that wipes out your account. Then you’ll have get a “real job”!

Choose a size of win-loss size ratio that turns you on as well as an outcome distribution that turns you on. Otherwise, you won’t follow your own system. On the other hand, if you have features in terms of these parameters that you enjoy experiencing, you will love following your system (provided the other parameters are also to your liking).

We'll chat again next week...remember to take the next two days off to reboot or refresh yourself mentally, emotionally and spiritually...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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