Here are 10 important numbers that traders need to identify for a profitable trading plan.

1. Expected Profit and Loss Ratio: This is the first step you need to evaluate the effectiveness of the method so that you can plan your trading as well as how to manage your capital appropriately.

2. Winrate rate: Please note that the higher the percentage of profitable orders, the smaller the profit amount for each order. The smaller the percentage of your profitable orders, the greater the amount of profit you will have to make in order to make you profitable in the long run.


3. Risk-reward ratio (RR): A strategy with small risks and large returns will help you get profits in the long term.

4. Past performance of trading signals: You need to understand how trading signals worked in the past, and how they produced results.

5. Exit point to maximize profits: The use of stop loss and overbought and oversold signals on oscillating indicators, or other trading techniques for traders to achieve their goals.

6. Suitable trading volume: The trading volume helps traders limit losses within a certain limit. For example, no more than 1% of total trading capital. Limiting losses is the first thing traders need to do to make profits.

7. Limit the total risk at any one time to 3% of the total trading capital.


8. Trading frequency: This is an important metric that is directly related to your capital management plan. If you trade too much, it affects the RR rate, and also the volume of your trade.

9. Market volatility: Market volatility will affect the spread. High volatility in the market can cause the market to slide or stretch price, affecting a trader's strategy.

10. Plan for the worst-case scenario: What would you do when the worst-case scenario happened? Deal with emotions or do you have a backup plan for this situation? This will help you be proactive in trading, follow the process, and solve problems when necessary. At the same time also partly helps to make your psychology more stable during the trading process.

Above are 10 important things for you to have a plan or a strategy smoothly. If you know these factors well, then you will quickly control your trading process.

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