How many instances of the setup to examine. In Part 1a and Part 1b of this series of posts, we examined how to determine the likelihood that our exits will be hit. In that particular post, we posited looking at 100 setups, and I said that that was because it made the analysis simpler. Heard … [Read more…]
What do the counts mean? In Part 1a, we examined how to determine the likelihood that our exits will be hit. In that particular post, we posited looking at 100 setups, and I said that that was because it made the analysis simpler. Our first order of business is to use our counts to determine … [Read more…]
Starting with the basics “Trading with Expectation.” What a strange statement? Do we not always trade with expectations? Of course, but the word I used is expectation, not expectations. There is a difference; and it is not just the “s” at the end of the word. Every trader has expectations, usually of gain, when they … [Read more…]
In this coming series of posts we shall examine how to trade with statistics of price movement. For now, our sequence shall be: Part 1: Determining how likely our exits are to be hit. Part 2: Determining the Expected Value of our trade before we make the trade Part 3: Evaluating the trade from the … [Read more…]
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