Would any bank ever give you a loan without first checking your credit score? Of course not! The same is true when it comes to trading. You should know how the instrument you are trading has performed in the past during particular days and times, purely based on that instrument’s various statistics, before you place a trade. If you aren’t using stats as the foundation of your trading plan, in our view, you are essentially gambling. Studying charts for price patterns, deploying indicators, observing trends etc., are excellent “framing” tools, but in our view, they need to be built on top of the core foundation of statistics in order for a trader to have a meaningful edge. Could you imagine what the profits of a casino in Las Vegas would look like if they didn’t rely on statistics so that they always have an edge? Why not arm yourself with a tool that will provide you with crucial statistics that you can rely on to make informed trading decisions?
Here’s a list of what you need to use Stats Harvester™:
1) Windows based computer
2) Internet connection
3) NinjaTrader 8 (free download here)
4) Market data
Check stats to find best day and best time to trade. Also, use this data to find statistically sound price ranges for potential profit targets and stops.
Once you’ve decided on a directional bias and checked potential price range moves vs your daily profit goals, now apply indicators (market profile, trend lines, VWAP, RSI etc.) to support your trading bias.
Based on a sound statistical foundation + framing your trading bias with supporting indicators, you can then potentially enter a trade!
