Risk Management Strategy Progression?

PF is just a statistical metric. It’s total profits divided by total losses over some collective number of trades. That’s all.

The trade, I suppose “comes first” in the sense that without a sample of trades, there are no figures from which to calculate the PF (or any other metric).

If it’s less than 1.0 you’re losing money (but you’d know that from your account balance, I hope).

This will help you -

As a retail CFD trader, your “trades” are not in a market. They’re bets against a counterparty on the price-movements of the counterparty’s own “products”. Don’t complicate it. :grinning:

As I mentioned above, just read “Profitability & Systematic Trading” by Mike Harris. That’s all you need. But you really do need that.

DON’T try to substitute online information for what’s in that book, because as a recent-ish trader/learner, you can’t possibly distinguish between information and misinformation, and there’s overwhelmingly more misinformation (and “agreement” about it!!) online than there’s information.

I suggest that a long established, accredited, respected, peer-reviewed, recognized textbook that has stood the test of time against a background of market changes, puts the odds strongly in your favor, while online “information” stacks the deck strongly against you.

Trading’s hard enough without trying to learn from questionable sources!! :stuck_out_tongue_winking_eye:

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