BENCHMARKING
Now that you have the framework to track key trading performance data, you may be asking yourself, “What does it mean? What does it tell me? When do I know if I am at the performance level I should be at?” After compiling your results, you need to be able to compare such results to another metric to truly determine what the results mean. What should we measure or compare our results to? The art of benchmarking, or comparing a result to another metric or other standard, is a very valuable practice to bring perspective to your results. Here are a few approaches to benchmarking:
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