What should you do if you are on a winning or losing run with your trading?
In this video I discuss the senario where you have either a long winning or losing run. Historical stats may show one thing but only reality is right. Thus a run of 5 winners may not have been seen before but that does not mean it will not happen, the same is the case for losers. So what do you do when you are having such a run? reduce the position size? leave the next trade? Increase the position size?
If you know the stats on strategy, (you should do, as how else do you know if you actually have an edge?) you should just check that something unusual has happened, but otherwise carry on as normal. Trying to second guess the outcome by changing the trade size or not taking the next set up may only result in a loss of opportunity or indeed a bigger loss.
Let me know your thoughts on this.