113: How good are your entries and exits... really?

Today, we're going to have a quick chat about the effectiveness of entries, and a simple technique you can use to determine how good an entry or exit really is.

I've been working on some breakout strategies lately and I've noticed in some of them that the entry really isn't that important at all…

That is, I can be pretty loose with the entry values and get similar results…

So there are other components to the strategy that are actually driving the performance.

Now, this got me thinking about measuring the effectiveness of entries and exits, so today I want to share a technique that Kevin Davey calls the "monkey test".

And no, you don't need actual monkeys for this!

Let's hear how Kevin uses the monkey test to check how good his entries and exits really are.

 

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Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.