Traders diary

Is it possible to evaluate your trading system objectively? Is there any sense to write a traders diary? Or you need to create a special program to monitor statistics? What results and output we can get? How can we use results and statistics? Should we be consistent and write completely everything or better not to be involved in details and just jot down only the most important data?

The way to success in trading is usually difficult, and moreover goes through a nasty area that probably no one likes – a bureaucracy, a lot of papers, statistics evaluation and investigation. In short, logging trading or traders diary. But this is an absolutely necessary condition to create a good trading system and most importantly to have a good feedback.

Trading Diary is a mirror of your personality and your trading strategy.

Can you imagine that you are using your trading system for about a year and do not have trading diary? If so, then you have only a single summary – if you are in profit or in loss. At best, you can calculate the profit or loss and their percentage.

If you want to know the level of a trader, look at his trading diary. Of course if he trust you so much that will show you his diary. If he does, his diary will show you a lot.

What can you find out from the well written diary:

– The number of deals during a given period
– The success of trading sнstem in percentage
– Nominal estimate of profit or loss
– Percentage estimate of profit or loss
– The success of individual currency pairs in %
– Average grade of profits and losses
– The percentage of drawdown
– The success of long and short positions
– The average value of stop loss
– The size of the operated position
– Conditions of entry and exit
– Psychology of entry and exit
– Other notes on individual deals

In other words, you will find out everything you need for further improving and customize your trading system.
Consistency, attention and patience are the necessary conditions for the proper conduct of the trade diary. Although it is very tedious and laborious work, but only it can fully show where you make mistakes, which currency pairs are not suitable for your strategy, if you need to calculate the size of the stop loss differently etc.

There is not necessary to use any complicated software. Everything you need can be written to Excel, or even on paper (for conservative traders).

At the initial stage, you need to consider what statistics are needed for the future optimization of your trading system. Every system has its own specifics and every trader has his own preferences. In addition, a lot will depend on what time periods you are trading. Of course data and conclusions 5 minute period will be materially different from one hour frame. Analyzing and recorded data depend on your goals at the moment. For example, if you want to improve the ratio profit/risk, then you need to keep track of the average profit and average loss and possibility to increase level of take profit and reduce stop loss. And analysis will help you to understand how the number of deals will reduce, if you increase take profit for example on 10 points.
At the same time, how it will affect profitability in total.
When you know which data you want to analyze, all you neeв to determine what parameters to track. Ideal to issue it as a table. At the base will always be the date, the currency pair, the size of the position, the time period, the time of entry, exit, etc.

trading diary
The table prepared in this way can always be changed and supplemented in order to have all the necessary data for control and correction of your trading system.

Try to discard superfluous information, not to lose a lot of time filling the table. On the other hand seek to find all the necessary information. Do not underestimate the importance of statistics. Discover all the advantages of this boring science, and use it for your benefit. Keep control of all that you can control in your work.

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