I use the following in a spreadsheet (also for closed positions)
OPEN POSITIONS a. Total number of trades b. Number of winning trades c. Number of losing trades d. Points b. and c. as a percentage e. Average winning trade profit f. Average losing trade loss g. Largest win h. Largest loss
Wins $2250 Losses $1100 Net $1150 204.5% Sharpe Ratio
Success Ratio = 66% ie 2 wins:1 loss
Aim for > 50%
Sharpe Ratio = 200% ie win $80: loss $40
Aim for >200%
Divide the Net Profit/Loss by cost position of all trades and you get Aksier's turnover ratio ie $1,150/$10,250 = 11.2% I have only just started looking at this. Thanks Aksier.
Also have daily, weekly, and monthly equity curves that hold Success Ratio and Sharpe Ratio.
Also run Licenced to Profit Profit & Loss in another worksheet and Budget vs Actual in another worksheet.
What works for me the best, is my % allocation to cash. It will fluctuate a lot, and i always want to hold some cash for opportunities. Currently holding high cash and in no rush to get back in.
I am always working on improving something. Currently, looking at smaller positions and scaling into positions more. Also working on extra sell signals mainly time stops and part profits on windfall moves with a view to buying back in after inevitable correction.
I highly recommend 'Licensed to Profit', Chris Shea
