Capstone Project Part 2: Performance Review 

Congratulations on completing the first part of your capstone project! You’ve planned and executed a trading strategy, and now it’s time to take a closer look at the results. This is where the real growth happens. By analyzing your performance, optimizing your strategies, and identifying key takeaways, you’ll be better prepared for your next trades. 

Reflecting on Your Trades 

Start by looking back at your trades with a clear and open mind. Ask yourself: What worked well? What didn’t? For example, maybe your entry points were spot-on, but your exit points could have been timed better. Or perhaps your risk management kept your losses small, but you missed an opportunity to maximize profits. 

Imagine you traded EUR/USD and hit your take-profit target, but later realized the trend continued well past your exit point. This might show you where to tweak your strategy, like trailing your stop-loss to capture more of the move. 

Understanding the Numbers 

Numbers tell the story of your trading. Look at metrics like your win rate, risk-to-reward ratio, and total profit or loss. For example, if your win rate is high but your overall profit is low, it might mean your winners aren’t big enough compared to your losses. On the other hand, a low win rate with strong profits could mean your risk-to-reward ratio is working well. 

Let’s say you took ten trades: six were winners, and four were losers. If your average win was $50 and your average loss was $25, you’re ahead. These insights show where your strengths lie and where you can improve. 

Tweaking and Optimizing Your Strategy 

Think of your strategy as a recipe. If one ingredient isn’t quite right, you adjust it to make the final dish better. The same goes for trading. Maybe you need to refine your entry signals, adjust your stop-loss placements, or reconsider the timeframes you’re using. 

For example, if your trades often move in your favor but reverse before hitting your take-profit target, you might need to review your target levels. Using tools like Fibonacci extensions or pivot points can help fine-tune your approach. 

Extracting Key Lessons 

Every trade, whether a win or a loss, has something to teach you. Maybe you learned to trust your analysis instead of second-guessing yourself. Or perhaps you realized the importance of staying disciplined and following your plan, even when emotions run high. 

Imagine you skipped a trade because you were unsure, only to see it play out exactly as you had analyzed. That’s a lesson in building confidence. Write these lessons down in your trading journal so you can revisit them and keep improving. 

Moving Forward with Confidence 

The goal of this performance review isn’t just to highlight mistakes—it’s to celebrate your progress and set the stage for continued growth. Trading is a journey, and every step you take brings you closer to mastery. With each review, you’re sharpening your skills and building a stronger foundation. 

In future trades, you’ll bring with you the insights you’ve gained, making each decision more informed and intentional. Keep practicing, keep learning, and remember: every great trader started where you are now. You’ve got this!