The Mathematics of ‘Set It and Forget It’

You may have heard of Paul Singh, the market speculator known for his calm demeanor and part time swing trading service. If you’ve listened to his lectures on market trends, you might have noticed a common phrase he repeats again and again.

‘Set it and Forget it.’

Poignant yet powerful, what he means is this- Place your trade, place your stop, and place your target. Then completely disregard what it does in the meantime.

Simple right?

Well, not really. Because the truth is, that forgetting your trade might be is one of the biggest hurdles to successful trading.

I for one, grit my teeth with every tick. Instead of waiting for my stop, I regularly freaked out and closed my position, usually at the worst possible price.


But one day, I decided to apply the ‘Set it and Forget it’ principle, and wouldn’t you know it, worked! My overall results showed more green than ever before.

Then I asked myself, “Well what if I didn’t set it and forget it. How would my results have looked?” I retraced a few early trades and calculated that difference -  The results of, "if I had freaked out, if I had broken my rules and closed the trades early."


Now, it’s impossible to change history and to know exactly what I would’ve done. So using a few published trades, I assumed that I would close my position at the worst moment possible.

In other words, what would have happened if I freaked out at the absolute worst point of the stock and closed my position. The results were astonishing.

Set It and Forget It Math Photo.JPG


The trades analyzed here are not all of my trades, but these trades were some large winners that were vital to growing my account. If I always freaked out at these worst possible moments, my performance would certainly have looked a lot grimmer.

If you suffer from the same problem of closing trades too early, I recommend you do the same. Create an alternate reality trading journal, one in which you followed all of your rules. If you ‘Set it and Forget it’ every time, how different would your results have looked? Then let the math be your guide.

You can find out more about Paul Sign here