Box Metrics for Intraday Traders
One of the best ways of understanding your trading--and your trading
psychology--is to collect data on your trading. There are many metrics
available for understanding your trading patterns (see the links below),
but here are a few unusual metrics that I've found to be especially
illuminating:
1) P/L for Your Largest Trades - When you're at your most aggressive, do you make money or lose? Are you aggressive because you see genuine opportunity, or are you aggressive out of frustration?
2) P/L for Your Most Active Trading Days - When you're placing more trades, do you tend to make more money, or do the added trades detract from profitability? Are you trading more because more is going on in the markets, or are you trading more for reasons other than opportunity?
3) P/L as a Function of...
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1) P/L for Your Largest Trades - When you're at your most aggressive, do you make money or lose? Are you aggressive because you see genuine opportunity, or are you aggressive out of frustration?
2) P/L for Your Most Active Trading Days - When you're placing more trades, do you tend to make more money, or do the added trades detract from profitability? Are you trading more because more is going on in the markets, or are you trading more for reasons other than opportunity?
3) P/L as a Function of...
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