Blog

How to analyze your trading report?

24.04.2025

Education

The skill of analyzing trading history is critical for a trader. It is as important as the ability to sing for a singer. Without it, the point is lost. It is impossible to "assemble" a profitable trading system without studying the results of "paper" trading. It is impossible to notice the first signals of strategy weakness.

Statistics can reveal all this. There is nothing complicated about it. Now trading terminals collect history themselves. Group it. Calculate the main characteristics of the strategy. The trader's task is to work with it systematically. And draw conclusions.

The main rule of trading is facts. If they indicate weakness, then so it is. Unprofitable trading patterns and habits must be corrected or thrown in the trash. There is no other way to determine your coordinates in the world of finance.

1. The benefits of the transaction log

Trader Jesse Livermore already kept statistics of his transactions at the beginning of the 20th century. Stock trading then was mainly done on "leads" or with long investment horizons. And Livermore was one of the first to apply technical analysis.

He questioned the principle of buying shares "buy and hold". The stock market crash of 1929 only confirmed his rightness. Livermore bought when he saw an entry signal. And sold when he saw an exit signal. It did not matter how long the operation lasted. A day. A couple of hours. Or a month.

The scope of his operations was impressive. At current prices, this is billions of dollars. Naturally, Livermore could not rely on untested trading methods. He very carefully collected statistics on the work of his patterns. Analyzed it. There are many references to this by the trader himself and his contemporaries. Perhaps pedantry made him a legend.

As Jesse Livermore himself later said, it was through his trading journal that he began to "see" the market. When it is strong. When quotes are ready to skyrocket. And when the market is weak. And about to collapse. Livermore also made big mistakes. He admitted them and remembered each one in detail. Almost all of them were related to psychology. When a trader ignored the lack of an entry signal.

2. Statement analysis algorithm

Analyzing the memories of Jesse Livermore, you can see his main weakness. His trading journal in the form of books gives us such an opportunity today. Every trader should do the same for themselves. It is necessary to analyze your transactions on a regular basis, every week or month. Find mistakes. And correct them in the trading system.

For this, a statement, a diary with comments and an account history in the trading terminal are usually used. First, you need to calculate the result of "paper" trading for the period. Find the ideal. Subtract spreads and swaps from it. They are indicated in the statement. And compare with the results of real trading.

The following values must match: ”Total Trades” - the number of transactions, ”Profit Trades” - the number of profitable transactions and their share, and Total Net Profit - the net profit of all transactions. If there are discrepancies, you need to compare transaction by transaction. Establish the reasons. A trader's diary will help with this. And make changes to the trading system so that there are no differences.

3. A microscope will not help a weak trading strategy

Modern programs make it possible to calculate very complex trading characteristics. To examine a statement under a microscope. In most cases, this makes no sense. A good trading strategy is "seen" immediately. It is better to spend this time searching for a new trading pattern. Refinement of the trading system algorithm. Or rest.

Wilmer Tem: On the Straight Path to Trading Success with SpiceProp

Hot Promo Days: Get Free Accounts & FXAN’s Analytic Tools Plus Burning Discounts