Tuesday, May 17, 2011

Todays Market Statistic and Probabilistic Trade Analysis

In regard to the earlier post, I am attaching two images here that illustrate a part of my trading system as well as some common sense thinking. Both of them could have provided good entries. However they would have different outcomes and obviously one was to 'bet' more equity than in the other. Could anyone tell which could be worked with a greater leverage?

 I'll give you some hints: Both of them still have 'room' to expand their ranges when compared to their average weekly ranges. Both of them had aligned their weekly and today's trend. Both of them had very good, not to say great R:R potential. However, one had a higher probability of fulfilling further expansion...

Let me add that in the search to make the perfect trade, I missed one entry by 2 pips and the other by 11-12 pips.


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