To optimise risk-adjusted returns, traders use a modified Kelly Criterion to determine how much capital each strategy receives. The mathematical formula determines your optimal bet size based on the win rate and the win/loss ratio:
(Intraday income, Long-term wealth, Hedging)
If daily loss exceeds 2% of capital, stop trading entirely. Come back tomorrow. Non-negotiable.
: Selling an out-of-the-money put spread and call spread simultaneously to profit from a stock staying within a tight price range. -business- 51 Trading Strategies- Optimise Your...
You are not just a trader; you are the risk manager, the analyst, and the accountant. Track everything: platform fees, commissions, data subscriptions, and even the cost of your analysis time. If you cannot itemize your monthly burn rate and operational costs, you cannot survive the inevitable drawdowns.
Optimise for range-bound markets where trends fail.
Take 50% profits at 1:1 risk-reward, let 50% run to 2:1 or 3:1 with trailing stop. To optimise risk-adjusted returns, traders use a modified
: Trades standard formations like ascending triangles, flags, and pennants.
Advanced techniques for hedging or high-leverage gains. Key Pillars of Optimising Your Trading Business
Knowing this, I can suggest which types of strategies (Scalping, Swing, Positional) you should focus on first. Non-negotiable
The most profitable “strategy” is not technical—it’s operational. Treat trading like a business:
Backtest them for 50 trades. Then add more. Over time, you’ll transform from a gambler into a who survives all markets and thrives in volatility.
: Capturing the fractional difference between the bid and ask prices on highly liquid, low-volatility assets. Fundamental and Catalyst-Driven Strategies