Okay lets put somethings into place here.
What is a strike rate and how do you deem one?
Do you class a strike rate when every entry you make, makes pips at one stage during the trade. But your trade management doesn't work out like planned and price reverses for a B/E or loss ? (I don't claim to have the above statistic before that kicks off!)
OR
Do you class a strike rate when you go agaisnt your plan and exit early ?
So what is the strike rate calculated on.....
Getting the entry right ?
Intra-Trade management ?
whats 8-9/10 ?
Was my 1st cable trade wrong or right today.........
Well like I said on my posts today. I'm happy with my desicion to enter cable short. I felt my analysis was correct and that I took the trade at the right price. I also belive that my stop loss was at the right place.
So why did the trade turn out to be a loss today ?
Well simply becasue my intra-trade management was a little off. Not becasue my entry was wrong or my stop was wrong. At one stage my trade was within 9 pips of hitting its 1st 50pip target. If I applied another trade management tactic or read the open trade a little better then I could have walked with 10-20-30-40 pips profit from the trade. Would that still have been classed as a failed trade ? after all it still wouldn't have hit the target even thow I would have walked with a profit.
So how do we calculate the strike rate 8-9/10 ?.......
Well yes I do claim to get the entry right 8-9/10 how the trade ends up will depend on my trade management thoughts. I try to stick to a game plan I have set out before entry. Sometimes I exit early sometimes I stay in and see out the plan, like today!
We can never know where price will go to or end up. All we can ever do is take educated and calculated guesses. Thats where the "intra-trade management" skills or systems come into play.
Knowing where price is likely to reverse or deflect off is where the entry skills come into play.
So we can have a 9/10 strike rate for entrys. But say a 3/10 for trade management.
I have higher than 3/10!
The way I see it everyday brings a new price situation created by human emotion, and with every situation you require a different route and thought process in order to manage the trade as you see fit. Targets are in place for calculating "potential" risk/reward.
Will price hit the target maybe, then again maybe not.....again this is where trade management will come into play. Should you exit, cash out a portion, or stay in.
ps. Ignore all the spelling mistakes. Its very late here and I need my bed.
