Copy and paste the end-oy-year review template below and use it in your own review process:
Performance Review
Metrics to Assess:
5 – 10 largest winners and largest losers.
Most and least profitable confluence factor.
Identify periods of strong performance and underperformance.
Maximum drawdown and recovery time.
Consistency: % of following trading plan.
Strategy Review:
Which strategies worked well? Which underperformed?
Evaluate trades that deviated from your plan.
Impact and reasons for missing trades.
Psychological Performance:
Reflect on emotional challenges (e.g., fear, greed, overtrading).
Identify patterns that impacted decision-making.
Identify the 3 biggest performance killers.
Note emotional triggers and psychological tendencies.
Document Key Takeaways:
Best trades: What worked well and why?
Worst trades: What lessons can you learn?
Missed trades: Why did you avoid them?
Opportunities: What do you want to improve next year?
Risk Management Audit
Assess Risk Rules:
Review position sizing, stop-loss placement, and overall risk exposure.
Update Your Risk Management Plan:
Adjust risk tolerance based on results and future goals.
Audit your reward/risk ratio vs. the impact of trade management.
Review Your Drawdowns:
Identify causes of large drawdowns.
Find your largest negative outlier.
Create steps to minimize them next year.
Update Your Trading Business Plan
Reflect on how well you are set up in the first place.
Do you find yourself wondering during your trading and unsure what to do in specific situations? Do you feel you have a lot of inconsistencies and noise in your trading? A good trading business plan will plug those wholes and provide guidance in your trading.
Your business plan should include:
All trading rules.
Timeframes and assets you are following.
Risk management principles.
Trade management and drawdown rules.
Guidelines for dealing with news events and adjustments.
Review Lifestyle and Health
Trading performance is tied to mental and physical health:
Reflect on your work-life balance.
Prioritize sleep, exercise, and mental well-being.
Plan time off or breaks to recharge and avoid burnout.
Goal Setting for Next Year
Behavioral Goals:
Focus on consistency, risk management, or reducing emotional mistakes.
Example: *“I will not risk more than 2% per trade.”, “I will stop managing my trades.”, * or “I will walk away from my screen after two losses in a row.”
Skill Development:
Identify areas for improvement (e.g., technical analysis, trading psychology, backtesting, journaling, etc.).
Commit to educational activities like courses, books, or coaching.
Process-Oriented Goals:
Focus on actions you can control:
Preparing your charts daily.
Sticking to your trading plan.
Journaling daily trades.
Following your risk management rules.
Celebrate and Reflect
Celebrate progress and achievements:
Acknowledge lessons learned, growth, and resilience.
Maintain a positive outlook:
Focus on the process rather than short-term results.
