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Market Mechanics Ep 27: How to Improve Your Strategy With Data — Transcript

by Brad Goh (The Trading Geek) · 5,015 words · 760 segments · language en · Watch on YouTube

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0:00Most traders change strategy as often as
0:02they change their underwear.
0:04They just change it because they feel
0:06like they should change rules. You know,
0:08they strategy hop every single week
0:10because they see this new shiny holy
0:12grail strategy. And every single time
0:15they do that, they're self-sabotaging
0:18because they reset their competence
0:20level back to zero.
0:22And the other mistake is that when they
0:23hit a losing streak, they instantly
0:25assume their strategy is no longer
0:27working. When it could just be normal
0:30variance. It could just be because
0:33of the fact that the market is random.
0:35There is a random distribution between
0:38wins and losses.
0:40That is why I don't adjust my trade plan
0:42based on emotions. I adjust it based on
0:45data. I adjust it based on evidence. So,
0:47in this video, I'm going to walk you
0:49through how I personally tweak my
0:50trading plan to make it better, right?
0:52To improve it over time.
0:54And my rule is very simple. I don't
0:56change my trading plan as and when when
0:58I feel like it. I don't change it when
1:00I've lost 10 trades in a row. It just
1:02doesn't work that way. I only change
1:05rules when I've either 100 trades to
1:07review or I have at least 3 months of
1:10data.
1:12If you don't have 100 trades yet, you
1:14need at least 30 to 50 minimum trades
1:17just to see anything meaningful, right?
1:19Because like that's the sample size that
1:20is required for you to get a sufficient
1:23data, sufficient evidence to prove that
1:26your trading plan is not working or it
1:28can be better. And if you're below that
1:31that threshold, right? Below that 30 to
1:3350 trades, don't tweak the system at
1:35all, right? Because when you do, you're
1:36just tweaking it based on
1:38your gut feeling. You're just tweaking
1:40it based on what you think
1:42it's not working within your trade plan,
1:45right? Like I said, just continue focus
1:48on executing more consistently and
1:50collecting more data because like I
1:53said, really anything less than 30 to
1:55100 trades it it's like just not
1:57meaningful enough. It's just not big of
1:59a sample size for you to make decisions
2:01on.
2:02And one more thing, when you introduce a
2:04new variable into your trade plan, like
2:06for example, you come here, you add it,
2:08maybe you add a new charting process, or
2:11maybe you add a new entry criteria
2:12saying that I only want to enter after I
2:14see a fair value gap, right? Something
2:16simple just like this.
2:18Bear in mind that you have to test the
2:20entire trade plan again just to prove
2:23the hypothesis.
2:24Okay, because you want to treat it like
2:26a science, not as like an art, right?
2:28And in a science, what happens is that
2:30you have a hypothesis, right? Like this
2:33is what you think could potentially
2:34work, and then you test the hypothesis.
2:37And then based on data, you can find out
2:39whether the hypothesis is actually
2:40proven to be right or proven to be
2:41wrong. And then you test another
2:43hypothesis. It's the exact same thing
2:45right here. When you introduce a new
2:47entry criteria, a new exit criteria, or
2:49a new way to manage a trade, bear in
2:52mind that because that haven't been
2:54tested yet, now you need to undergo
2:56another round of testing to prove that
2:59variable actually works, to prove that
3:01your fair value gap actually works, to
3:03prove that, you know, trailing stop loss
3:05actually works.
3:06Okay? So, this is something that a lot
3:09of traders tend to overlook, right? They
3:11don't realize that when they introduce
3:13something new, they have to test out the
3:15entire trade plan again. Because if you
3:17don't, you will never ever truly know
3:19what worked and what didn't work.
3:22So, quite simply put, remember data
3:25isn't just for vibes, isn't just for
3:26validation, it's for you to make
3:28data-driven decisions, right? And
3:31quarterly review is the perfect time
3:35frame to do so, right? Because it
3:36filters out all the short-term noise and
3:38it reveals to you the real patterns.
3:41So, basically, let's say today is March
3:4531st, right? It's the end of quarter
3:47one. This is where I come over to my
3:49journal and I'll review every single
3:51trade I've taken in the past 90 days, in
3:54the past 3 months. All right, so you
3:56once again, you want to make it a habit.
3:58You want to make it a routine.
3:59So, at the end of each quarter, right,
4:01January, February, March 31st, right,
4:03March 31st is the last day of quarter
4:05one, you want to go and look at all the
4:08trades that you have taken in the past 3
4:11months. Okay, go and review each one
4:14very, very in-depth. All right. So, this
4:16is where I literally block out one
4:17entire day just to do this properly.
4:20So,
4:21this is where after I'm done reviewing
4:23every single trade I've taken in the
4:24past 3 months, I go on to my notebook
4:26and I I go on to my quarterly review
4:28template. Okay, so it will probably look
4:31something like this. Okay, like this is
4:33the quarterly review template and then I
4:35will fill it out based on, once again,
4:37the data that I've reviewed over the
4:39past 3 months, right? I can figure out
4:40what are the wins, the loss, the break
4:42even, so and so forth. Fill out all Fill
4:43out all of these necessary details right
4:46here. And once I'm done filling it up,
4:48it will look probably something just
4:50like this.
4:52Okay? So,
4:53this is important, right, because what
4:55you're doing is that you are extracting
4:58the feedback from every single trade
5:00that you have taken. And when you do
5:02that, you're able to find out, once
5:03again, what works, what doesn't works,
5:06right? What are the variables that
5:07influence the results.
5:10So, once you do that, this entire
5:13quarterly review document right here, it
5:15becomes your source of truth for the
5:16next 90 days, which means that
5:20you want to like just go and reflect on,
5:22okay, what are the things that perform
5:24well and what are the things that didn't
5:26perform so well, and then you want to do
5:29more of the things that perform well in
5:30next quarter and you want to do less of
5:32the things that didn't perform well in
5:33the next quarter, right? In fact, you
5:35should even
5:36think about how you can eliminate all
5:38the mistakes that you committed in the
5:39past quarter.
5:41So, my process is very simple. I review
5:45this entire quarterly review template,
5:47you know, after I'm done filling it up,
5:49I use this as a source of truth, and
5:52then as I'm doing that, as I'm reviewing
5:54this quarterly report, I want to
5:56identify the repeating patterns. What
5:59are the mistakes that I tend to commit
6:01over and over again? What are the
6:03emotional patterns that I tend to
6:06experience over and over again, right?
6:08Whenever I feel fear, I do this.
6:10Whenever I feel angry, I feel this. I
6:12feel like after uh after I win three
6:15trades in a row, I always get
6:17overconfident. I always, you know, start
6:19to size up, even though my trade plan
6:20tells me not to.
6:22And if you keep on doing those stuff
6:23over and over again, that's a pattern,
6:25right? So, you want to identify the
6:27patterns you tend to repeat. Because
6:30when you start to make the unconscious
6:32conscious, now you are trading the
6:35reality of the market. Now you are no
6:37longer trading a perception of the
6:38market. Now you are actually seeing the
6:41market for what it is. Now you are
6:42actually seeing the world as it is,
6:44rather than what you think it is, right?
6:47So, identify the repeating patterns, and
6:48then once that's done,
6:50I want you to convert. I want you to
6:52convert each pattern into an if-then
6:55rule.
6:56All right, so here's a cheat sheet that
6:58I've compiled in for you, right? So,
7:00it's a very simple cheat sheet. I'm
7:01going to go through it with you later
7:02on, but basically, your goal is to turn
7:05each problem into solution, to turn each
7:07pattern into a action that you can take
7:11to prevent yourself from committing that
7:12same pattern, to prevent yourself from
7:14going unconscious again.
7:16And then you also want to have like one
7:17action number step that prevents the
7:19same mistake from repeating.
7:21And then once done with this, right?
7:23Once you have the problem and you have
7:25developed a solution to fix the problem,
7:27you want to update your trade plan,
7:29right? You have to update your trade
7:30plan with the solution. You want to
7:33adjust your guardrails to ensure that
7:35you adhere to your rules, to adhere to
7:38your risk parameters in the next quarter
7:39or so. And then you run that
7:42that new solution, that new variables
7:44for the next quarter.
7:45And when you do that, you are pretty
7:48much making decisions. You are tweaking
7:50your trading plan based on data, not
7:52based on vibes. Right? And then at the
7:54end of next quarter, you do this exact
7:56same five-step process again. Right? So,
7:58let me just quickly
7:59review like just quickly recap the
8:01entire five-step process. Basically,
8:05you want to
8:07review and fill up a quarterly template
8:09just like this. And then you want to
8:11identify the repeating patterns. And
8:14then you want to convert each pattern
8:16into an if-then rule just like this. If
8:18this happens, then I'm going to do this.
8:20If that happens, I'm going to do that.
8:22And then you want to implement it in
8:24Edge Flow by tweaking your trading plan
8:26or adjusting your guardrails.
8:29And then you want to run it for the next
8:30quarter.
8:31That's it. And then you re-evaluate and
8:33you do that the do the exact same thing
8:35the next quarter at the end of the next
8:36quarter itself.
8:39Now, to help you do this, right?
8:42To me, I really believe that the hardest
8:43part is being conscious.
8:46Because when we are stuck in that
8:47trends, you know, when we are stuck in
8:49that cycle of
8:51unprofitability,
8:53we tend to commit the same emotion same
8:55actions, we tend to experience the same
8:57emotions without realizing it.
9:00Right? So, like I said, the hard part is
9:02really just getting conscious. The hard
9:04part is really just building the
9:05awareness.
9:06The easy part is to solve that problem
9:08itself. Right? Because once you have the
9:09awareness, you know exactly what you
9:11need to do to prevent yourself from
9:12making the same mistake, to prevent
9:14yourself from getting stuck in the exact
9:15same pattern.
9:17So, in order to help you spot the
9:18patterns, I've come up with like this
9:20little cheat sheet right here.
9:21And I pretty much categorize the
9:23patterns into these different categories
9:26right here. All right. So, there are
9:28your technical patterns, which is in
9:30terms of how you map out your process,
9:31your entry criteria, your exit criteria,
9:34the issues. Like I said, this is heavily
9:37focused on how you build your trading
9:39plan in the first place, right? How you
9:41map out your higher time frame, how you
9:43map out your point of interest, what is
9:45your entry criteria, whether the liquid
9:47liquidity ship entry model actually work
9:49in this condition, in that condition.
9:52So, when you do your quarterly review,
9:53go and spot this out, right? This should
9:55be the first priority, right? Go and
9:56find out which part of your trading plan
9:58is no longer working, which part of your
10:01technical analysis process do you need
10:03to refine, right? So, that you can
10:04perform better in the next quarter. Next
10:07is timing.
10:08Timing-wise, right? Once again, look at
10:10all the trades that you have taken. If
10:12you have taken all of them in the London
10:14session, then go and evaluate whether
10:16London session has been profitable for
10:18you or not. If you you're just like, you
10:20know, trading at any time and every
10:21time, then you can see and judge based
10:24on each trade what time they are in, and
10:27then what is the session that is the
10:29most profitable for you. For example,
10:31you take 20 trades, and out of those 20
10:33trades,
10:34uh some of them were taken in London,
10:36some of them were taken in New York,
10:37some of them were taken in Asian
10:38session, and you found out that 15 of
10:40those 20 trades tends to work in
10:44your your the way that you envision it
10:45for it for the it to work in, right?
10:47Like, you tend to win those trades when
10:48you take them in London session, then
10:50perhaps that's a data point that tells
10:51you that you should be trading more
10:53during London session. And then next is
10:56emotional, right? Like I said, until you
10:58make the unconscious conscious, it will
11:00ruin your life and you will call it
11:01fate. You need to make sure that
11:04whenever
11:05you
11:06do your reviewing, right? You go and
11:08review
11:09what was the emotion that resulted in
11:11you taking the action that resulted in
11:13you getting this outcome.
11:15If you lost that trade, okay, what was
11:17the emotion that you were experiencing
11:19same at the start of the trade itself?
11:21What were the emotion that you feel when
11:23you got out of the trade?
11:25Because that big loss could have been
11:26avoided if you just stopped after the
11:28first loss. But because you kept getting
11:30angry, you kept trying to get back at
11:32the market, you kept revenge trading,
11:35you kept feeling like, you know, you are
11:37right and the market is wrong. This
11:38caused you to go into this downward
11:40spiral where you
11:41incur even more losses.
11:44Right? So,
11:45when you do that, what happens is that
11:47you trace
11:49the problem all the way down to the root
11:51cause. And the root cause is your
11:52emotion, right? It's the fact that you
11:54got angry. It's the fact that you choose
11:56to put your ego over making money. Boom.
11:59That's a repeated behavioral trigger
12:01that you can strive to to be a more
12:03aware of the next time it actually
12:04arrives. Right? I revenge trade after a
12:06losing streak, example.
12:08Another pattern you can spot for is
12:10risk, like in the way you actually
12:12manage your risk, right? Sometimes you
12:13get inconsistent because you start
12:15feeling emotions, right? You start
12:17feeling like you're on top of the world
12:19and now you're sizing up. Or, same
12:21thing, after you lose a few trades in a
12:22row, you feel like you want to get back
12:23at the market, right? You want to, you
12:25know, make back the loss, you start
12:27sizing up. Okay? So, once again, all of
12:28those are patterns that you want to be
12:30spotting. And also, trade management,
12:32how you manage the trade, how you manage
12:33winners, how you manage the losers, how
12:35you manage the existing open position.
12:38Okay? So, ask yourself this. And then,
12:40execution quality, right? Whether you're
12:42taking the right setup, whether you're
12:43following your trading plan. And then,
12:45environment and context, right? External
12:47conditions that change performance. It
12:49could be physiological, it could be
12:51physical, it could be digital, it could
12:53be social, it could be internal, right?
12:55There's like different types of
12:56environment. It could be your work space
12:58not being optimized, it could be when
13:00you are trading, when you're stressed,
13:02and you are have some form of problems
13:04in your life, you don't you you tend to
13:06not perform as well as you like to
13:08perform. Or, you could be trading during
13:11these certain market conditions, you
13:12know, when Trump is making the market go
13:15super duper
13:17volatile, and there's a lot of
13:18uncertainty in the market, and the
13:21trades that you take in these sort of
13:23market conditions tend to perform badly.
13:26Right? So, all of these are environment,
13:27all of these are context. Right, so you
13:29can just spot the pattern and just put
13:31it in here.
13:33Once you found the repeating patterns,
13:34your job is to turn each pattern into a
13:36solution.
13:38Like I said, pattern is the problem,
13:40solution is the fix. Right, the rule is
13:42the fix.
13:43And this is where I will go through the
13:46if then sheet with you, right? If then
13:48cheat sheet.
13:50Like I said,
13:51once you spot a pattern, that's the
13:52first step, right? The first step is
13:54always becoming conscious. Because if
13:56you don't become conscious, you will
13:57keep on staying in that trend state,
14:00right? You will keep on staying in the
14:01trend state where you just do the same
14:04thing, get the same results, right? It's
14:07so it's the same thing that you're just
14:08going to be continue running the same
14:10program over and over again. And if you
14:12run the same program over and over
14:13again,
14:14guess what? You are going to get the
14:16same outcomes over and over again. So,
14:18when you start becoming more conscious,
14:20when you start becoming more aware,
14:21right? When you start identifying these
14:23patterns right here, what happens is
14:25that now you're waking up. Now you're no
14:27longer sleeping, now you're no longer in
14:28a dream-like state, now you're waking
14:30up. And now you're like, "Okay, cool.
14:32This pattern needs to go. I need to fix
14:35this shit." Right? And then this is
14:37where you can develop solution, right?
14:38Which is the next step,
14:40so that you can get out of this state
14:42that you are in, right? So that you can
14:44break out of this pattern, break out of
14:46this loop.
14:47So, here's the key, no more than one to
14:49three changes per quarter.
14:52If you change too many variables at
14:53once, you're going to create chaos.
14:55And you will never ever know what
14:57actually caused improvement. Like I
14:59said, every single variable that you
15:01change, you need to test it out. You
15:03need to undergo another cycle of testing
15:05to see whether that variable actually
15:07works or not, whether it actually has a
15:08significant impact on your trading
15:10results or not.
15:11So, I would recommend you to change
15:14maybe just max three variables inside
15:17your trade plan.
15:18I would advise you to change one, right?
15:20But if you want to change more, I'll say
15:21three is like the maximum you could go.
15:24Uh and then just test it out for the
15:25next quarter. And then at the end of the
15:27next quarter, you get out your results
15:29again, you do your same quarterly
15:30review, and then this is where you can
15:32come to a conclusion on whether the
15:33three variables that you have changed
15:35perform make your trade plan better or
15:37not. You know, make your trading results
15:39better or not.
15:41And if not, maybe you want to change
15:42another three variables, right? For the
15:43next quarter. And then just test the
15:45next uh the next three variables in the
15:47next quarter itself.
15:49So, it's very simple, right? Like I
15:51said, just want to identify the rules
15:53that stop the biggest leak. Okay, if you
15:56just have to fix three things in this
15:59quarter, go and find out what are the
16:01biggest three patterns that cause you to
16:03lose the most amount of money, and just
16:05focus on fixing those three things. It
16:07could be a combination of technicals,
16:09emotional, uh execution quality, uh
16:12environment, risk, uh timing, right? You
16:15just find the three variables and just
16:16test it for the next quarter.
16:18And that's how you find like a
16:19scientist, not react like a gambler.
16:22And when it comes to the solution part,
16:25right? The next question you might be
16:27asking is, "Okay, Brett, cool. I've
16:28identified the pattern. Now, how do I
16:30develop the solution to solve that
16:31pattern?" Very, very simple. You use
16:33what I call the if-then framework. This
16:35is a very mechanical system, okay? Once
16:39again, super duper mechanical system.
16:41First step, identify the pattern. Once
16:43you identify the pattern, then you can
16:44develop the solution.
16:46And how the if-then framework works is
16:49if the problem occurs, then I'm going to
16:53implement a solution.
16:54So, if my performance is profitable,
16:57but my results are inconsistent,
17:00then I will tighten discipline. I will
17:02take fewer trades. I would maybe trade
17:04within a shorter window. I will stick to
17:06my hard stop after a max loss.
17:09You know, I will just continue to just
17:11like I will not continue trading after a
17:13losing streak.
17:14If win rate is high, but your average R
17:16is low,
17:17What that means is that I can win
17:19trades, but then over the long run, I
17:22might not be profitable because like my
17:25the amount of money that I make when I
17:26win is always much more lesser than the
17:28amount of money that I lose when I'm
17:30wrong, right? So,
17:32maybe I need to stop cutting my winners.
17:33Maybe I need to reduce early exits.
17:35Maybe I need to delay partials. Maybe I
17:36need to
17:38just let my winning positions run.
17:41If win rate is low, but average R is
17:42strong, then this is where I can think
17:44about how I can increase my win rate,
17:46right? Maybe I need to improve improve
17:47selectivity, right? Maybe I need to only
17:49just focus on the A+ setups.
17:52If risk deviation is high, consistency
17:54is low, then standardize sizing, so on
17:56and so forth.
17:58For every single pattern that you spot
18:00in your trading
18:02quarterly review,
18:03that is going to be a solution to fix
18:05that pattern.
18:07And if you don't know what it is,
18:09thank god for AI. You could just send it
18:11to AI, right? And if you're using Edge
18:13Flow, you could just send it to Flow AI.
18:14Yeah, you could just send Flow AI and
18:17just say, "Hey, Flow AI." Or any AI
18:19software that you're using out there,
18:20whether that's ChatGPT or Google Gemini
18:23or Claude, right? Whatever it is, just
18:25ask the AI.
18:27"Hey, AI, I have completed my quarterly
18:29review and it seems like I tend to
18:32revenge trade after my first loss. This
18:34is the pattern that happens over and
18:35over again. How do I fix it? What's the
18:38solution that uh will will prevent me
18:41from actually committing this mistake
18:42again?"
18:43And when you ask that, AI is so advanced
18:45nowadays where it will give you like the
18:48the right textbook answer, right? It
18:50will tell you that, "Okay, cool. You
18:52revenge trade after your first loss.
18:54Now, you might want to implement like a
18:55hard stop after your first loss, right?
18:57Maybe you want to size down after your
18:58first loss." Whatever it is, whatever
19:00they suggest you, and that is your then
19:02framework. That is your solution, right?
19:04So, very simple. Like I said, the
19:05hardest part is to just become aware of
19:08the problem in the first place.
19:10And then, once you got aware of the
19:12problem, you can just send it to AI and
19:14then you can just ask it to like present
19:16you a solution. And then when you have
19:17the solution, like I said, just run it
19:19for the next quarter.
19:22Okay. When you have the solution, in
19:25order to help you run it to the next
19:26quarter, you should use Edge Flow in
19:28some way, shape, or form, right? So, for
19:30example, in this case,
19:32if performance is profitable, but my
19:33results are inconsistent. This is where
19:36I want to take fewer trades, and I want
19:37to have a shorter time window, or I want
19:39to stop after max loss. This is where,
19:42right? Once you've decided your rule
19:44changes, the one to three variables that
19:46you want to be testing in the next
19:47quarter, you want to lock them in your
19:49system so you're not relying on
19:50willpower or discipline. And Edge Flow
19:52helps you do that, right? So, this is
19:54where I can come in here, and I found
19:55that, okay, this is the solution that I
19:57want to be taking. So, this is where I
19:58will update my guardrails. Maybe I
20:01actually go from five trades a day, I
20:03want to take fewer trades for the next
20:05next quarter, right? I can just set it
20:07to three. And then maybe I want to make
20:09sure that
20:11I stop after I only lose $300.
20:14Now, I'll change that as well.
20:16Okay, so, you can
20:18either update your guardrails here, or
20:20you can update your trade plan inside
20:21your Edge Future itself, right? So,
20:23maybe you want to test out the fair
20:25value gap, right? So, this is where I
20:26can put it in right there. Or maybe you
20:28want to
20:30change your trade management method.
20:32Maybe you want to try um set and forget
20:34instead of
20:36you know, like taking partial profits
20:38for the next quarter, right? So, this is
20:39where I can change your rules. Okay, you
20:41can adjust your trade plan in here.
20:43But like I said,
20:44the goal here is for you to do
20:46something, right? Whatever it is, just
20:47do something, because nothing changes if
20:50nothing changes.
20:52Once you have developed the solution,
20:53the three variables, go and implement it
20:55into your trading system. You can either
20:57adjust your rules inside of Edge, or
20:59change your guardrails. Right? That's
21:01it. Change your guardrails, or adjust
21:04your Edge.
21:06Because the last thing you want to do is
21:08to be relying on memory.
21:10Right? You don't want to be
21:12doing stuff like, okay,
21:14cool, I'm just done with my reviewing
21:15right now. And I know that this is the
21:17stuff that I should be doing in the next
21:19quarter. And now I'm just going to
21:20chill. Okay, cool. I already done my
21:22review, right? Cool. Next.
21:24Knowledge itself is not power. When you
21:26do that, what you're doing is that you
21:28are just trying to remember to do this
21:30in the future. What you really want to
21:32do is to do something with it. Is to
21:34bake it into your system. Bake it into
21:35Edge Flow.
21:37Because when emotions hit, you're going
21:38to be forgetting about all of these
21:40stuff right here. You're going to be
21:41forgetting about all of these like
21:43variables that you want to test on in
21:44the next quarter. Right? So, bake it
21:46into your system because the system is
21:47what keeps you consistent.
21:50Oh, that rhymes.
21:51Okay, so, that's that. After you
21:53implement the rule changes, you might
21:55want to lock in one theme for the next
21:5690 days, right? Once again, not five or
21:5910 different goals, just one focus. And
22:01you could write it at the
22:03top of your quarterly review template
22:05just like this.
22:06And you might want to like turn it into
22:07like a identity rule that you repeat.
22:10Like, I'm the type of trader who reads
22:11the same every single trade. Or I'm the
22:14type of trader who shuts down after a
22:17max loss, just like this. So, this is
22:19the identity statement. All right,
22:21because when you start putting the
22:22identity statement down right there, and
22:24if you can, try to review it every
22:25single day, what happens is that you are
22:28reprogramming the subconscious mind.
22:31Because right now, to this day, you
22:33might be the guy who tends revenge trade
22:35after a losing streak. You might be the
22:37guy who focus on, you know, your ego
22:40rather than making money. But the minute
22:43you type this identity statement in, you
22:45are unconsciously telling your body,
22:48telling your mind, telling your
22:49subconscious mind that I am the type of
22:52trader who shuts down after max loss.
22:55And when you do that, you have just
22:56undergone an identity shift.
22:59And we always act in accordance with our
23:01belief and identity.
23:04So, if I'm the type of trader who shuts
23:05down after max loss, I'm not going to be
23:08the guy who revenge trade after losing
23:09streak. That's not me anymore, right?
23:11That's the past me. Now, I'm the type of
23:13guy who just close my trading platform
23:18after I hit the max loss.
23:21So, you want to put some form of
23:23identity statement just like this.
23:25And that, my friend, is how you evolve
23:28as a trader.
23:29Like I say, you don't the G hard,
23:31you don't panic after a losing streak,
23:33you don't make random tweaks just
23:34because you feel like something is off.
23:37You review a real sample size, whether
23:39that's 100 trades or 3 months worth of
23:42trading data. You find the recurring
23:44patterns, you convert them into one to
23:47three rule changes they can take for the
23:49next quarter, you bake them into edge
23:51flow, you build them into your system,
23:54and you run the experiment for the next
23:5590 days.
23:57And then at the end of those 90 days,
23:59you review.
24:00You do that exact same process over and
24:02over again, and that's how you trade
24:04like a scientist,
24:06not like a gambler.
24:08And that's the difference between a
24:10professional trader and a retail trader.
24:13A professional trader would do what's
24:15required to succeed, and this is part of
24:18what's required. It's reviewing the tape
24:20and just continue iterating on the trade
24:23plan and just continue getting better,
24:25just dedicating themselves to the craft
24:27itself.
24:29Like I say, when you do this every
24:30single quarter, your edge doesn't just
24:32works. What happens is that it
24:33compounds. All of these little
24:35improvement that you're making in your
24:36trade plan, it tends to start
24:38compounding over time. It tends to
24:40result in exponential growth, right? The
24:42only reason why I'm making a lot of
24:44money right now is because of all of
24:46these reviews that I've done in the past
24:487 years of trading.
24:50And all of these tiny little
24:51improvement, tiny little feedback
24:53allowed me to get to where I'm today.
24:54And I'm still doing the exact same
24:56process right now. And I'm still trying
24:58to level up, still trying to improve and
25:00iterate my trade plan.
25:02That's success in trading. That's what
25:04separates the average traders from the
25:05great traders.

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