How 'ROBUST' is Your Trading System?

How robust is your trading system?

Could you put a number to it?

What does that mean, anyway?

Well, robust means how well your system holds up
and still makes you money even when drawdowns occur,
as they will with any system.

Knowing how much of a drawdown your system can
withstand and still be profitable at the end of the
month is critical to know regarding discipline.

You see, where many traders run afoul is when a
drawdown occurs.

They begin to lose faith in their system, and then
are very tempted to deviate from it.

Unfortunately, that tempation to start toying with
your system may begin just at the time when you
really need to be sticking with it.

Why?

What happens AFTER a drawdown?

A profitable run is often starting, and that is
precisely the time that you want to be following
your system and reaping the profits.

If you know how much of a drawdown your system
can withstand, then it makes it so much easier
to stick with your system through the drawdown
and into the winning spell.

You can easily and quickly determine how robust
your system is, how much of a drawdown it can
withstand and still be profitable through the
simple act of backtesting.

Backtesting has many benefits and can take many
of the emotional challenges out of your trading.

It is also one of the key best-practices in
trading to keep your cool and make the decisions
that keep your profitable.

To make backtesting and getting your metrics on
your system easy and fast, The Trading Performance
Analyzer has just been updated to include both
maximum drawdown and both losing and winning
streaks.

You can find out how easy it is by watching the
video here.

http://insideouttrading.com/tpa/analyzer/

If you feel that it would help you to trade
better and make more money, then simply click
the link below the video.

Have a great weekend!

Cheers