Part 5/7:
With a foundational understanding of market behavior, developing a trading strategy tailored to personal strengths is imperative.
Strategic Framework:
Combine pattern recognition with risk management. As discussed in the video, a strong strategy is one that continuously tests and refines its approach.
Use positive expectancy formulas to ascertain the profitability of a strategy based on past performance.
Position Sizing: Adjust your entry point size according to risk appetite. Employing proper position size and ensuring risk does not exceed a predetermined threshold is essential for sustainable trading.