Author Archives: Trademetria

How to treat trading as a business

Running a trading business is definitely simpler than most businesses out there. No physical location, no employees, no inventory (besides capital) and the sky is really the limit to growth. Because it’s so easy to start, it’s also easy to get sloppy in managing it leading to an early close. The benefits of treating your trading as a business are many, most importantly, you’ll get better results. Does a CEO of a company look at only sales numbers at the end of the day to measure the success of his/her business? No, lot’s of variables are taken into account to know the health of the business and most importantly, how to increase sales. Unfortunately, most traders only care about profits and losses.

In this post, I’ll go over a couple of important aspects of a trading business so that you can treat your trading like one.

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The importance of the trading simulator and how to properly transition to a real account

Trading on a simulator

Among the questions I receive often, the most frequent is: “When do I know when to trade on a real account and risk real money?”

Many people don’t even want to try to practice in the simulator before starting trading a real account, thus risking money they can’t afford to lose, with the illusion that their account will grow. I call this an inconsequential attitude!

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How to manually compute the P&L of your stocks, options and futures trades

How to calculate the pnl of your stocks, options and futures trades

At Trademetria, we process millions of trades a month without a glitch, and believe it or not, when users compare our results to their broker statements, they find some scary broker miscalculations ranging from rounding errors to missing fills leading to a wrong pnl. After seeing data from 150+ brokers, we can safely say we’ve seen it all.

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How to compute your portfolio’s annualized rate of return

Rate of Return

If you’re an investor or trader, chances are that you want to see great returns on your investments. One of the most common ways to measure your returns is through the annualized rate of return (ARR) metric. Simply put, this is the percentage returns of your portfolio over a period of time.

In this blog post, we’ll show you how to calculate your own percentage return using two different methods.

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4 risk metrics every trader should track

When it comes to making money in the markets, risk management is probably the most important factor to long term success. To learn how to make money, you must learn how to stop losing first. Risk is all about controlling your losses. They can’t be prevented, but they can be analyzed and limited.

Here are 4 risk based metrics that even novice traders can track via a simple spreadsheet or a trading journal.

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9 ways to improve your algo/robot using Trademetria

pnl-metatrader-signal

Nowadays creating a robot is no longer limited to financial wizards. It’s quick and easy, but creating a robot that makes money is a completely different story. Just like manual traders who adjust their strategies as the market changes, a trading robot also needs to be adjusted frequently to obtain greater profitability. Some systems like Meta Trader are able to create powerful backtesting reports, while others don’t provide valuable information to discover where and how your robot is losing. In this post, we will be showing some of the countless resources that Trademetria offers to improve the performance of your robots.

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Trading spreadsheet journal vs Online trading journal: Key differences

trading-spreadsheet-vs-trading-journal

Recently, I had a chat with someone that wanted to know why he should use an online trading journal vs his own trading spreadsheet. My answer was quick and somewhat brutal.

“Why drive a ford when you can drive a Lambo.”

Another way to put it:

“I’ll give you two options. The first one is free, but it won’t increase your returns. The other is paid and will most likely increase your returns. Which one would you go with?”

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Options Trading Journal

options-trading-journal

Last updated on 2022-04-26

In this article, I’ll show you how to properly add your options trades and make the most out of our options trading journal.

Trademetria fully supports options even complex strategies, but they must be properly entered into the system.

What Trademetria doesn’t support at the moment is options on futures contracts for some infrequently traded contracts.

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Best Trading Tools for Traders

Resources and tools for traders and investors

When I first started trading back in 2001, I used yahoo finance and my broker’s platform to trade. That’s it. The result? I lost $8k! Not fun.

When I became a professional trader, I got to sit next to professionals and I learned from them and from other traders what works and what doesn’t when it comes to trading tools and resources for traders.

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