Grading your Trades

Record keeping for my trades are lacking at http://www.forexproject.com/My_Trade_History/.  I keep track of my profit/loss and sometimes add commentary for each trade but most of the time I just don’t have the time to post commentary on the site.  Therefore I am going to try something new.  I am going to attempt to grade my trades on a point system.  This grading system is based on a system that John Carter has mentioned in his book and articles.  It should be noted that even the most experienced traders still keep a log of their trades with important commentary for each.

This grading system actually has two parts.  The first is an execution grade, the second a performance grade.  Execution scoring is exactly as it sounds, how well you executed a trade.  A grade of 1-5 will be given and is similar to scoring in school where a 5 is the best (grade of A) and a 1 is the worst (F).

1     Impulse Trade
2     Entered setup late and didn’t set a target
3     Followed trade entry but removed stop and let position run past original target
4     Followed trade entry but closed out position before predetermined target hit
5     Followed trade as planned 

The second part is a performance grade which has the same scoring system as the execution grade.

1    Stop hit
2    Out at a different price from stop but a losing trade
3    Out at even
4    Out at a different price from target but profitable
5    Target hit 

This seems like a lot but will allow you to give yourself an average grade each week and assess your execution and performance of trades.  In addition, it will allow me to easily place 1 number for execution and 1 number for performance per trade when trades are updated on the website.

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