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Relation of what is taken vs what is available
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Cristian Nunez |
When we execute a trade with our confluences and confirmations, it is often not the perfect entry and after we backtest the trading day we realize how the correct way to execute the operation was. It would be very useful to have a ratio that indicates what was captured vs. what was available. This way we will be able to know how much we can improve and motivate ourselves to improve further.
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Cristian Nunez
Example: In the NY session I took 2 trades 3R, -1R for a total of 2R. It turns out that when doing the backtesting I realized that the first stoploss was a mistake and that if I had taken the second entry correctly I would have had 4R of profit. With the capture ratio we could know that we captured (3-1)/4=0.5 which would be a capture of 50% of the amount available for the session with the strategy.