Diagnosing a difficult trading period before rewriting the plan

BabyPips argues that disappointing results require a diagnosis more specific than “nothing works.” A loss can follow a decision made according to plan, while a profitable transaction can still violate the process. Looking only at the outcome can therefore hide the source of a problem.

The article recommends examining entries, exits, exposure and the market environment. A journal may show skipped setups, altered stops or a method being used under unsuitable conditions. A short run of results is also an uncertain basis for judging a strategy, particularly after costs and execution differences.

A review rule written in advance can reduce impulsive revisions during a drawdown. If an adjustment is justified, changing one element makes the next evaluation more informative. This process does not validate the original strategy; it helps distinguish what is known from what still requires evidence.