1.3 KiB
1.3 KiB
Chapter 9 Stragey Development - Goals and Objectives
SMART:
- Specific: specific goal;
- Measurable: want to have a trading system with certain performance metrics.
- Attainable: "I need to develop a trading system that will provide 500 percent annual return with less than 2 percent maximum drawdown" NOT REALITY!!!
- Relevant: Heart and mind must be fully committed.
- Time bound: Trading (creating strategies) cost time.
Create first SMART goal, implement trading strategy, then re-evaluate it after trails
Using a wishlist to create a SMART goal:
| Like/Dislike | Item | Does System Meet This ? |
|---|---|---|
| Likes | Trades e-minis only | |
| X % annual return, Y% max drawdown | ||
| Calmar > Z, Sharpe > W | ||
| No overnight exposure | ||
| 2 or fewer indicator | ||
| 100% mechanical | ||
| Dislikes | More than 2 trades per day | |
| Adds to losing positions |