How to Analyze Your Trading Setups
Understanding which setups work best for you is crucial for consistent profitability. Learn how to analyze and refine your trading setups for optimal performance.
Categorizing Your Setups
Effective setup analysis starts with proper categorization:
- Pattern type (breakouts, reversals, trends)
- Time frame (intraday, swing, position)
- Market conditions (trending, ranging, volatile)
- Entry and exit criteria
Measuring Setup Performance
Key metrics to track for each setup:
- Win rate and profit factor
- Average risk/reward ratio
- Maximum drawdown
- Time in trade
- Performance by market conditions
Refining Your Setups
Use these strategies to improve your setups:
- Review and tag all trades by setup type
- Analyze performance metrics regularly
- Identify optimal market conditions
- Document setup variations and results