Good Luck and Bad Luck in Trading – How to manage drawdowns

Equity curves do not move in a straight line. Trading is a very bumpy ride. The trader has to experience drawdowns, probably weeks and months without a profit. Then there are times when everything goes our way. Every setup seems to work. Our account history is almost green only and we are seeing new highs […]

ALMBX sequence, a powerful mathematic formula

We have received the following article from one of our traders who is enthusiastic about the statistics. The article is about the calculation of risk management based on the statistics. I will share with you a method of implementation that will connect all the trades that we do and manage their size in a sequential way […]

Statistical App – Normal Day

This very useful statistic determines the probability of price closing in the certain range level of the day, provided that the day is classified as a normal day. Normal day is classified as this: Dax will break through just the high or low of the Initial Balance (IB), while IB is the range of first […]

Statistical App – Breakout & Failure

This statistics analyses market situation where DAX opens in the range of a previous day and the first trading hour closes outside of the previous day range. When such situation happens, we look for the probability that DAX will reverse back to the previous day range. When does the statistic happen: DAX Instrument 1H Timeframe […]

September, What to expect? EURUSD Analysis

Analysing the markets with the use of statistics is not very common in general, however it is a great addition to a more familiar technical analysis. You do not even need any special utilities, just a trading platform with a high quality data and excel. Statistics are used for the following: Formulation of logical expectations […]