Posts Tagged ‘thinkorswim’
Trading Profit June 2010 | UP 101% | www.homeoptionstrading.com | Options Trading Strategies
Trading Performance must be managed at 2 levels: Portfolio and Trade specific. Portfolio Measure: Profit/Start of Year Cash Balance = 334/000 = UP 101%. Key Performance Metrics … Win/Loss Probability = 51/61 = 83.61%. Average Win/Average Loss = 92/4 = .04 Won per Loss. Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 83.61% x .04 = 1.71. Positive Expectancy = (Win Probability x Average Win) – (Loss Probability x Average Loss) = (83.61% x 92) – (16.39% x 4) = 5 per trade. NO trade adjustments needed. For more, visit: www.homeoptionstrading.com
Trading Profit Apr2010 | UP 47% | www.homeoptionstrading.com | Options Trading Strategies
Trading Performance must be managed at 2 levels: Portfolio and Trade specific. Portfolio Measure: Profit/Start of Year Cash Balance = 814/000 = UP 47%. Key Performance Metrics … Win/Loss Probability = 35/49 = 71.43%. Average Win/Average Loss = 5/6 = .96 Won per Loss. Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 71.43% x .96 = 1.40. Positive Expectancy = (Win Probability x Average Win) – (Loss Probability x Average Loss) = (71.43% x 5) – (28.57% x 6) = 6 per trade. NO trade adjustments needed. For more: www.homeoptionstrading.com
Trading Profit Dec09 | UP 157% | www.homeoptionstrading.com | Options Trading Strategies
Return: Profit/Start of Year Cash Balance = 593/380 = UP 157% for December 2009. Key Performance Metrics … Win/Loss Probability = 60/68 = 88.24%. Average Win/Average Loss = 98/4 = .99 Won per Loss. Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 88.24% x .99 = 2.64. Positive Expectancy = (Win Probability x Average Win) – (Loss Probability x Average Loss) = (88.24% x 98) – (11.76% x 4) = 47 per trade. For more, see: www