Evaluating your trading strategy is essential for long-term success. Begin by analyzing performance metrics like win rate, risk-to-reward ratio, and overall profitability. Track every trade in a journal, noting entry/exit points, reasons for decisions, and emotional state. Assess how consistently you followed your plan and identify any recurring mistakes. Backtest the strategy using historical data to gauge reliability. Consider market conditions—does it perform better in trends or ranges? Adjust for factors like slippage, fees, and volatility. Regular review helps refine your approach, improve discipline, and adapt to changing markets. A strong strategy is clear, testable, and consistently executed.
