Many traders learn to optimize and are impressed with Metatrader’s ability, really if we think about what trading was like in the past, Metatrader really impresses. But is knowing how to optimize enough?
Dear readers, I say no, it is not enough to know how to optimize, you need to have a basic view of financial management, you can start with some analysis and then expand your view on financial management, imagining that you already have a specialist consultant that you like to use , let's start with some tips:
First step: know how much optimization gain per month and per day, know that a gain of 0.4% of the daily gain is very good.
Second step: Know that your drawdown is very important, the lower the better.
Third step: Divide your total profit by drawdown. The higher the result, the better.
Examples:
Profit 1500 / Drawdown 800 = 1.88 (worst optimization)
Profit 1250 / Drawdown 500 = 2.50
Profit 1000 / Drawdown 200 = 5.00 (Best optimization)
They saw in the example above how the biggest profit is not always the best optimization!
Tip: You can assemble a spreadsheet in Excel, there is a function in Metatrader that allows you to copy everything (all optimizations in the metatrader) with the right mouse button and paste it in Excel, from there you can insert a simple division formula and then choose your best optimization.
Below I will leave a picture of a good optimization so that you have a visual base, if you are interested in hiring a good signal provider with advanced financial management elements click here
If you want to know more about my website where I publish financial results in real time click here
