18
Performance Sensitivity
For most traders, when tracking their own performances, or measuring the performance of trading systems, a tendency is to look for almost perfect improvement over time. We always want the performances to get better, stay in top shape, etc. In reality, such push can be harmful and can backfire.
Attached is an Excel spreadsheet showing the potential reason why and how to monitor trading performances using a relaxed condition that works well over the long term.
The Spreadsheet