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What the…?! I know, that was surely your immediate response to this headline, right? If you never heard of the “CoinFlip Trading Experiment”, then you should stay for the next few minutes.
Why? Simple: You will now learn a lot about the importance of exiting a trade and how the basic trade management principles look like.
Moreover, I’ll show you a powerful entry strategy to get the most out of your risk-taking.
Let’s dive right in …
About the Experiment
Inspired by trading coach Van K. Tharp, the so-called Coin-Flip Experiment was conducted a few years ago by myself to test the influence of trade management on the P/L after initiating a position.
Before, I had heard a lot of the importance to exit a trade smartly. Van cited in his books that a good exit is able to compensate for a poor entry. In principle, his opinion was, that every entry strategy could play out well in the end when the trader uses a proven exit plan. But I didn’t find any reliable tests on that out there...
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