Statistics for Traders
Statistics is one of the most misunderstood and abused subject in mathematics (and science). The reason is something we can all easily understand – statistics is something we can all sort of relating to but counter-intuitive when applied in event by event situations.
Our brains are wired that way so that our ancestors can survive in nature. Since human has not evolved into any better forms for quite some time, yet our civilization is advancing in such a pace that even our computers are outdated every year or two, our minds are not that cooperative when it comes to making decisions that are drastically different from the ones that our ancestors faced. The ability to adapt our minds in making proper trading decisions boils down to our ability in applying logical thinking and statistical analysis properly.
It all sounds so complicated but in reality all you have to do is to take time understanding some basic concepts in statistics, then utilize the distilled rules and concepts to make better trading decisions, as oppose to relying on our gut feelings.
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Fascinating Volume and Open Interest Relationship in Emini S&P
As of friday's close, emini S&P has an estimated daily volume of 3,251,000 (more than 3 million), with prior open interest stands at 2,350,000 (more than 2 million). Think about the ratio. The daily turnover is more than the commited overnight pos ...
As of friday's close, emini S&P has an estimated daily volume of 3,251,000 (more than 3 million), with prior open interest stands at 2,350,000 (more than 2 million). Think about the ratio. The daily turnover is more than the commited overnight pos ...
How to Compute the Point of No Return Boundaries 
I have introduced the concept of Point of No Return some time ago here. It is not a complex concept but many traders find it difficult to apply the concept in their own trading. I will try to explain how point of no return is calculated in general an ...
I have introduced the concept of Point of No Return some time ago here. It is not a complex concept but many traders find it difficult to apply the concept in their own trading. I will try to explain how point of no return is calculated in general an ...
Impact of Quantitative Easing on Stock Market Indices
Everyone on the street talks about Quantitative Erasing and that it is messing up the markets, causing inflations, etc. Can we really identify the characteristic change in the S&P that distinctly separate its behaviour from its normal self, or, is th ...
Everyone on the street talks about Quantitative Erasing and that it is messing up the markets, causing inflations, etc. Can we really identify the characteristic change in the S&P that distinctly separate its behaviour from its normal self, or, is th ...
In Early Stage Of System Development, Avoid Position Sizing
Many beginners in trading system development like to play with position sizing scheme. It feels great when you get a great equity curve with spectacular performance by simply twisting what position sizing rules to use and experiment with various sizi ...
Many beginners in trading system development like to play with position sizing scheme. It feels great when you get a great equity curve with spectacular performance by simply twisting what position sizing rules to use and experiment with various sizi ...
Inside Gap Behaviour
This is the second instalment on emini S&P gap behaviour. The first one is Outside Gap Behaviour, Now and Then. Inside gaps are gaps that do not have the open price printed outside of the previous trading day range. Fashioned in the same style ...
This is the second instalment on emini S&P gap behaviour. The first one is Outside Gap Behaviour, Now and Then. Inside gaps are gaps that do not have the open price printed outside of the previous trading day range. Fashioned in the same style ...
Interesting Site Stats
Just found out something interesting about daytradingbias.com Things I expected to be true for the site: 1. 10 am is the time where most of the comments are posted - busiest time of the site is also busiest time with the markets. 2. 5 pm is the ...
Just found out something interesting about daytradingbias.com Things I expected to be true for the site: 1. 10 am is the time where most of the comments are posted - busiest time of the site is also busiest time with the markets. 2. 5 pm is the ...
Intraday Bias: Emini S&P R2 And Beyond (Signal ID - R2 Day)
Statistics on RTH days where ES open above pivot, never traded at or below pivot and breakout above R2. There is a good reason why I often tell newcomers not to fade a strong market without compelling reasons. This is one of them. (Member-only conte ...
Statistics on RTH days where ES open above pivot, never traded at or below pivot and breakout above R2. There is a good reason why I often tell newcomers not to fade a strong market without compelling reasons. This is one of them. (Member-only conte ...
Intraday Bias: Emini S&P S2 And Beyond (Signal ID - S2 Day)
Statistics on RTH days where ES open below pivot, never traded at or above pivot and breakdown below S2. There is a good reason why I often tell newcomers not to pick bottom hastily . This is one of them. (Member-only content follows) [DTBMember ...
Statistics on RTH days where ES open below pivot, never traded at or above pivot and breakdown below S2. There is a good reason why I often tell newcomers not to pick bottom hastily . This is one of them. (Member-only content follows) [DTBMember ...
Lunar Cycle - Long Only Model
I have one of my guys worked on this and here is the result of a trading system based on lunar cycle that looks like it works. ...
I have one of my guys worked on this and here is the result of a trading system based on lunar cycle that looks like it works. ...
Market Breadth Primer: Advance / Decline Issues
Advance Issues is the number of stocks traded above their previous trading day close within a particular basket. For example, New York Stock Exchange provides the advance issues data across all the stocks traded on its board throughout the day. That ...
Advance Issues is the number of stocks traded above their previous trading day close within a particular basket. For example, New York Stock Exchange provides the advance issues data across all the stocks traded on its board throughout the day. That ...
