Q&A by Rob Friesen
FEEDBACK LOOPS TO IMPROVE FUTURE RESULTS
The three items all traders should have if they want to improve their trading results are their trading plan, a log of all their trades, and a trading journal. These items are necessary so that the trader can develop a feedback loop. In engineering, a feedback loop is where a portion of a system’s outputs are sent back to the inputs to further affect and modify future outputs.
The two major categories of feedback loops are positive and negative. Negative feedback loops reduce aspects of the future inputs, while positive feedback loops enhance future systematic feed-back loops...