Developing as a Trader: Course Quiz

Course quiz

1. Which style is most sensitive to the spread?

   Position trading Swing trading Scalping
2. Which is a complete entry rule?

   Buy when it looks good Buy at the close of the first candle that closes above the rejection candle's high Buy pullbacks
3. Which of these is a filter rule?

   Enter on a candle close above the level Place the stop below the swing low Do not trade within an hour of a high-impact release
4. Which is a process goal?

   Make 3 percent this month Take every valid setup and journal every trade Double the account by December
5. Your month was negative and your journal shows that most losing trades broke a rule. What should you change first?

   The strategy Your execution and discipline; the strategy has not really been tested The broker
6. A trader enters GBP/USD after a 120-pip move with no setup because it is moving fast. Which emotion is that?

   Fear FOMO Discipline
7. After a loss, a trader doubles size on a trade with no setup to get back to even. What should the plan have triggered?

   A larger target A stop for the day after the loss A switch of pair
8. A trader consistently closes winners at 15 pips and holds losers to 60. What pattern is this?

   Good risk management Loss aversion producing a negative expectancy Scalping
9. A strategy performs superbly on the data it was tuned on and poorly on the following year. What is the likely explanation?

   The market has changed permanently The strategy was overfitted to the tuning period The broker changed spreads
10. A strategy with a 40 percent win rate loses six trades in a row on a demo. What does this tell you?

    The strategy is broken Very little; streaks of that length are expected at that win rate The demo is faulty
11. Average win 1.5R, average loss 1R, win rate 40 percent. Over 100 trades, before costs?

    Makes 0R Makes 60R minus 60R, break even Makes 60R minus 60R: 0R
12. Win rate 30 percent, average win 3R, average loss 1R. Expectancy?

    0.2R 0.9R minus 0.7R, so 0.2R Negative
13. A strategy's historical maximum drawdown is 12 percent. It is now 11 percent down with every trade taken by the rules. What does the plan say?

    Abandon the strategy Continue; the drawdown is within the expected record Double the size to recover
14. After a losing month, a trader rewrites the entire strategy at once. What is the problem?

    Nothing; strategies should change often Several changes at once cannot be evaluated, and the impulse is emotional The month was too short to be a losing month
15. Which of these figures alone tells you whether a strategy is profitable?

    Win rate Average win Expectancy
16. How many trades are needed before results begin to separate skill from luck?

    Ten Fifty to a hundred Five
17. Loss aversion typically produces:

    Large wins and small losses Small wins and large losses No trades at all