That sting of losses chart is really interesting... I cant help but critique, its in my blood...a few thoughts - 1. might be better to look at the median. If you were to take 5 trades, 1 is a 300% winner and 4 others are 5% winners the average is 64% gain. Is that more telling or is the median more telling? I ague for median. 2. average gain can be lower than average loss and you can still be profitable - depends on position size. 3. I guess profit factor is one of the most telling traits of 'le

@MichaelPuett I agree the median is useful in that sense. In the part 2 version of this video I talk about finding outliers like a 300% winner in your example. So all a matter of preference, I'd rather use average percent and then take note the outliers if I see any. For #2 if you mean average PERCENT gain being smaller because of position size then yea that is true but in if you mean just dollar gain smaller than dollar loss that doesn't seem possible considering the size of your gain or loss i

Thanks for the video.

That sting of losses chart is really interesting... I cant help but critique, its in my blood...a few thoughts - 1. might be better to look at the median. If you were to take 5 trades, 1 is a 300% winner and 4 others are 5% winners the average is 64% gain. Is that more telling or is the median more telling? I ague for median. 2. average gain can be lower than average loss and you can still be profitable - depends on position size. 3. I guess profit factor is one of the most telling traits of 'le

@MichaelPuett I agree the median is useful in that sense. In the part 2 version of this video I talk about finding outliers like a 300% winner in your example. So all a matter of preference, I'd rather use average percent and then take note the outliers if I see any. For #2 if you mean average PERCENT gain being smaller because of position size then yea that is true but in if you mean just dollar gain smaller than dollar loss that doesn't seem possible considering the size of your gain or loss i

is correlated to the position size you take.

## Join now or log in to leave a comment