The Simple Trader – Intro to Concepts (part 1)
The Simple Trader (The Simple Art of Being a Trader) Copyright Michael Colantoni 2020 Principles A trend of any degree tends to continue in the same direction. The trend may pause or correct before continuing. Trends occur within trends. They are a function of time frame and degree. A single point on the chart, with … Continue reading The Simple Trader – Intro to Concepts (part 1)
Fundamental Equation of Trading (Part 2)
Let’s analyse the implications of the Fundamental Equation and see what it tells us about trading successfully. The equation reads; r x S + R x F = P Probably, the more meaningful way to write it for someone focused on profit is: P = r x S + R x F Our primary goal … Continue reading Fundamental Equation of Trading (Part 2)
Fundamental Equation of Trading (Part 1)
THE FUNDAMENTAL EQUATION OF TRADING Copyright Michael Colantoni 2020 R = Risk or loss when a trade fails (average for unsuccessful trades). A negative number. r = return or profit when successful (average for successful trades). E = Expectancy over many trades - expected average profit per trade over all trades. P = total profit … Continue reading Fundamental Equation of Trading (Part 1)
Probability versus Expectancy
This blog has been prompted by a Twitter conversation over the last few days that requires me to respond in a much longer format than Twitter provides for. So I quickly set up this blog to accommodate that. There is a fundamental concept that determines one of the major, if not the most important, differences … Continue reading Probability versus Expectancy