Does your Trading Strategy suffer from Loss Aversion? | Darwinex Platform Tools
Loss aversion in trading is a psychological tendency to allow trade losses to extend beyond a reasonable level of risk. Hand-in-hand with this often comes a tendency to cut profits short. When these two behaviors are combined, it means that the underlying trading strategy performance is severely impacted and in extreme cases can lead to catastrophic loss.
You probably already know if you suffer from one or both of these traits, but the ability to measure this in a quantifiable way means that you can put in steps to improve your trading behavior and measure your progress.
This video explains how you can take advantage of the Darwinex Loss Aversion Investable Attribute to do just this.
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This is Episode 58 in the Darwinex 'Algo Trading for a Living' Playlist.
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure:
https://www.darwinex.com/legal/risk-d...