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TRADING – DEEPER EXPLORATIONS Rajeev Shukla. A word about simplicity.

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Presentation on theme: "TRADING – DEEPER EXPLORATIONS Rajeev Shukla. A word about simplicity."— Presentation transcript:

1 TRADING – DEEPER EXPLORATIONS Rajeev Shukla

2 A word about simplicity

3 Trading Edge  An edge is the outcome, the mathematical outcome, of the buying and selling process.  There are three factors to consider when determining if your edge will be a success: 1. How much you win when you win ? 2. How much you lose when you lose ? 3. How often you win ?

4 Best of Both – Not possible

5 Different way to look  Entry rules control risk. Entries don't determine winners or losers!  Exit rules determine profits or losses (winners or losers).  Entry and exit rules together determine expectancy and opportunity.  Position sizing determines your net profit or return, as well as maximum drawdown.

6 Basic statistics for all traders  Expectancy of system.  Asymmetrical nature of losses or why every trade matters.  Risk of ruin.  GPR.

7 THANK YOU  Visit: www.lifefunetc.com  Mail: dr_rajeevshukla@rediffmail.com


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