Optimal Way to Track Trade Edges for Improvement?

asked by u/phongthep_worawit · 20d · 3 answers

Been trying to systematically track my trades, not just P&L, but the actual 'why' behind each entry and exit. I know journaling is key, but I'm finding it hard to quantify the strength of my edge on any given trade. Like, I have a watchlist and a setup, but sometimes it feels more like a gut feeling I later rationalize. For those of you who've been at this a while, what's your most effective method for logging and then analyzing if your 'edge' actually played out as expected, or if it was just random market movement?

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Top answers

  • u/aaron_nguyen· 21 pts· 20d

    This is a great question. I've found success by trying to assign a 'confidence score' to each trade based on how well it aligned with my pre-defined criteria before I enter. It's not perfect, but it helps me see if my gut feelings are actually backed by my edge.

  • u/iong· 2 pts· 20d

    This is a great question. I'm also trying to get better at quantifying my edge. Do you ever use a confidence score or something similar to rate your conviction level before entering a trade? I've been thinking about trying that.

  • u/pbernard· 1 pts· 20d

    For quantifying your edge, consider defining clear, measurable criteria for each setup beforehand. Then, for each trade, rate how well it met those criteria (e.g., 1-5 scale). This can help distinguish genuine edge from rationalized gut feelings post-trade.

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