Random Statistical Probability.
After years of trading the futures and stock markets and having the skill set to be able to forecast weeks, months and years in advance the exact day and and price a contract will be trading at, was a skill set well learned.
Years forward - Computerized systems starting taking form and shape. I believe computers have one purpose, to massively increase performance and reduce manual labor time. Apply this to trading, to trade and do all the manual calculations one used to do with a calculator and on excel spreadsheets in a single moment. I believe that if a process can be completed manually, then it can be automated. In short how can a user apply "lean management" systems and process into trading.
I had to rethink the "old" way of trading. So i created what i call Random Statistical Probability.
Random = I use the belief that the markets are random and at any time the price can go up or down, so how do i manage the trade effectively to profit from such a perspective.....
Statistical Probability = I am not talking about opinions here, i am talking about raw data. Raw data which a user can use to prove that an event happened when a certain set of criterion are met. To me the more data the better, hence providing the trader a better reading, and a better way to make a informed decision.
Using Random Statistical Probability means it gives me the ability to enter high probability trades. This means i am not necessarily trading the trend, but rather making trades that show a history of making money, and prove to me that their is a high probability that the trades will provide a profit. This data will show me how to maximize my return on investment, without risking the arm and leg and help make informed decisions.
Once the entry criterion is met I then also to look at the flip side and manage risk in such a way that it provides either a profitable exit, should the market go against the high probability trade, or provide a reasonable rate of return should any event occur.
The use of various instruments helps achieve this goal.
