Trade duration shows a number of ways to analyse your trades based on how long you traded the positions.
Overview : View your trades by the most common trade durations and analyse where your strengths and weaknesses lie. Day trades cover your trades up to 24 hours, swing trades are between 24 hours and to 2 weeks, and positional trades over 2 weeks.
·Intraday. Split your day trades into 4 different timeframes. Less than 1 hour, 1-4 hours, less than 24 hours and greater than 1 day.
·Quartiling. In this analysis the trades are divided into 4 groups personalized for you based on your trade durations.
There are a few common patterns of behaviour that help gain insights into trading edge based on duration.
This pattern shows that the fastest duration trades are the most successful. This is a common pattern for a scalping style. This trader takes a lot of small winning trades quickly, and lets losing trades sit for longer in the hopes that they become profitable. This style typically has a high Win Rate, a low Risk Reward and a low Disposition.
If your duration chart looks like this pattern and you are not yet profitable, then it is worth reviewing the longer term trades and attempting to make your losses smaller here.
Another common pattern is the opposite one where the longest duration trades do the best. Typically with this style a trader will have a low win rate, high risk reward and high disposition.
In this case winning trades are being held a lot longer and delivering great performance in the longer durations. The losses in the shortest duration show a trader taking losses off the table quickly.
If you have this pattern and are not yet profitable, try and improve both the win rate and the risk reward slightly. Use the recommended goals from GamePlan to focus on achievable metrics.