When reviewing a strategy, I record whether the target or stop was reached first under my defined rules.
This helps me evaluate the setup's behavior and whether my chosen target and stop distances are realistic.
I also account for execution assumptions and avoid changing the rules after seeing the outcome. Consistent measurement gives me better evidence than relying on a few memorable trades.
Tracking whether your target or stop is reached first is one of the best ways to evaluate the statistical edge of your trading strategy. By measuring this consistently, you eliminate confirmation bias and see the true win rate, risk-reward ratio, and expectancy of your setups without relying on emotional memory.
This kind of meticulous data collection is especially valuable when trading with a prop firm. Understanding your exact drawdown behavior, target distances, and stop placement helps you stay well within strict daily loss limits and consistency rules. If you are refining your edge for a new evaluation, make sure to check out our Prop Firm Bridge coupon codes to compare deals before you jump in.
How do you usually adjust your targets when your data shows stops are being hit just before the profit level?
