DexterTrades: Thinking in probabilities
With 8 years of experience, DexterTrades shares some of his trader's wisdom.
Author - TradeZella Team
Meet Dexter Trades!
This week we had the pleasure to chat with yet ANOTHER senior trader utilizing TradeZella, DexterTrades. 🥳
He’s an Options, Futures, and Equities trader with over 8 years of experience in the markets.
Not to mention, an active TradeZella journal-er and ready to dish out the deets on his experience with trading - past, present and future. 📝
To get you up to speed, upon this interview, DexterTrades just finished closing out a monster month tallying over $50,000 in profits, a 7.9 Profit Factor and a steady equity curve.
Brilliant results! What a milestone achievement. 🤩
So many traders dream of this moment- when an annual salary for some can be made in a single day. 🙌
This is the power of trading and why we are so passionate about the journey!
Because of course, it’s not easy along the way.
Sacrifices have to be made, risk has to be taken, and of course failure has to be overcome.
Towards the end of November, DexterTrades took to Twitter to share his amazing feat and put it in perspective for new and struggling traders that this has been a work in progress for years.
Started from the bottom, now we here! 😎
In our interview, we asked DexterTrades more about his journey and how this insane feat came to be.
Of course, this wasn’t luck or an overnight success story.
As we mentioned, it was years of making mistakes, correcting failures, and understanding the depth behind his trading activities.
“I believe profitable trading is trading in sample sizes.”
Dex mentioned that his biggest mistake in the past with trading was not thinking in terms of probabilities.
He was too focused about the next trade, and not the next series of 10 to 15 trades.
Let’s sidebar on this a bit here…
This is such a key element in trading that many overlook.
Trading is a game of probabilities.
Analyzing why one individual trade soared to the moon and another stopped you out isn’t really going to give you any clues as to why you’re succeeding or failing. 🤔
It’s about looking at a sample size and trying to derive meaning from the patterns, red flags, or strengths that you identify. 🕵️
Another thing to mention here is that it’s important to keep your variables somewhat similar, so that we have fair data to derive these clues. 🧮
This means keeping position size, risk, and setups consistent across a sample size, so that you’re not thrown off with outlier data.
An example of outlier data might be something like…
You have taken 9 trades with a max risk of $100. Your P/L is sitting at -$100 at the moment from those 9 trades using a breakout setup.
On your tenth trade in this sample size, you risk $300. This turns out to be a winner, and you make $600 on the trade- totaling a P/L of $500.
This sounds amazing, you’re in the green! 😅
While it’s great to make money, it doesn’t really show you a true indication of the strategy that you’re using. 💡
Because had that trade been a loser, you would have been out $300. 🤕
See how this one trade with inconsistent size skews your data?
This is why it’s helpful to use sample sizes and think of the next 10-15 trades, as opposed to your next trade only.
Okay, now back to our regular programming.
DexterTrades spoke to us about his current state of trading and what he’s looking to work on.
He says “My biggest thing I am currently working to improve is creating bigger winners.”
This is definitely the right step for Dex to take at this point in his trading career. ✅
He’s been at it for 8 years, set himself up with the right foundation, proved consistency, and now is looking to maximize his gains. 💪
For a new trader, creating bigger winners may not be ideal to have top-of-mind.
When you’re starting out, you want to take the necessary steps first to ensure a solid foundation with a strategy and structure, test it out, gain confidence and consistency, and then go for the big winners. 🏌️
For traders who have built up these components in their trading, it’s an essential next step to take to elevate overall performance.
Sooo, Dex…Thoughts on TradeZella? 💭
Dex’s favorite feature on TradeZella is the Market Behavior feature.
(We know that we featured the Market Comparison above, but this was totally a coincidence!)
“It allows me to analyze my performance in different market conditions which gives me the ability to make more sound system adjustments.”
We love when members utilize these sometimes overlooked features, because they start to notice how helpful it can really be towards their bottom line. 🙌
For the future, DexterTrades wants to automate parts of his mechanical trading system. As far as this month, he wants to continue his routine but with slightly bigger size. 📈
We know you can do it, Dexter!
He signed off by saying that learning and improving is top priority when it comes to his future goals with trading.
“Having a growth mindset in trading is extremely valuable.”