The monthly review:4 numbers, 1 decision.
A monthly trading review looks at the bigger picture that weekly reviews miss. 4 numbers are enough to see whether you are getting better.
Then you make 1 decision for next month.
The 4 numbers
Plan followed as a percentage, average win and average loss in R, and the number of trades. Compare them with last month.
The decision
If the plan-followed number rises, keep the rules. If it falls, go back to the weekly review and find why. Change 1 thing only.
Use it in real trading
The tool informs the decision, it never makes it. Here is how it plays out on real trading days.
Plan followed rises from 71% to 84% and losses shrink. You keep everything and add 1 focus.
Trades jump from 20 to 40 and plan followed drops. Next month’s rule: maximum 2 trades per day.
Mistakes to avoid
- Judging the month by profit only.
- Changing 5 rules at once.
- Skipping the review after a losing month.
What makes it different
Your journal, plans and results live in 1 place, so the review takes 30 minutes.
Questions
Why not just look at profit?
Profit depends on the market. The 4 numbers depend on you.
What is a good plan-followed number?
Above 80% is a solid habit.
How long does it take?
About 30 minutes.