Significant time, capital and emotion go into developing a trading tactic. Frustration comes when the win loss ratio shifts negative and there is no clarity as to why. The best guess is to re-validate the process to “fix” the problem. This reactive response does not solve why the trading tactics are not working, just that they are not working in the past environment.
Without a barometer there is no way to quantify how any adjustments improve a method. There is a sense of doubt and uncertainty. How do we see above the forest and have clear vision, to anticipate adjustments in our tactics to reduce risks and attain our performance goals? The answer is to have a structured strategy foundation that that is grounded in Market State awareness.