Assuming the daily target (say 2.5 points) is based on: 1. the trader's statistical analysis according to his trading strategy, 2. the target (if required) can be adjusted according to the recent/current market's characteristics, I would guess both approaches can be co-existed without significant conflicts.
You got my point......Thank you I am not disagreeing as the point here is a psychological solution in dealing with well being. The market will act independantly from this. However by creatively framing in ones expectations with a dynamic componet that is directly related to market movement would be logical. Michael B.
Experience has led me to learn from the market..... I have discovered the best way to deal with my days work at hand is NOT to set a framework of expectation. My wife does this LOL..... Michael B.
Personally, I believe devising a way (such as setting up target profit - whether daily or else) to measure performance and evaluate strategy for improving performance should be fine.
I believe in the same methodology.... but the target expectation is based on a "DIRECTLY RELATED" MAE and MFE of my set-up used. Michael B.
To simply draw lines in the sand to base ones performance on is not enough. For me it must be related to the market.....or self destruction takes place. I can feel well about my days work by just following my plan. My wife feels good about the profit I make....LOL Michael B.
I totally agree. However (to be flexible), alternatively to set a framework of several (statistically probable) expectations (such as optinistic, most likely, pessimistic, etc).
Ok....well-being could be modified to slant reality. But seriosly, I have been intrigued with the recent threads on so-called random entry...... Discussion has lead from framing in ticks to reversing when wrong...this sort of trading just tries to catch the correct side. There is no ......expectation at all.... Michael B.
Some consider MAE and MFE "curve fitting. But combined with velocity measurements it is rather powerfull. Simply add a spreadsheet to your trade log, which every serious trader should keep......you will have the numbers for each set up readily available. Michael B.